Celer Forms Strategic Partnership with Chainlink to Bring Real-World Info to Layer-2 Scalability
Celer is pleased to announce its strategic partnership with Chainlink, to integrate real-world information to their layer-2 scaling platform.
In the course of 2018, most developers have naturally been leaning towards Celer Network and Chainlink while building their apps and have triumphed successfully.
In the announcement, Celer stated that they felt the need to provide users with a helpful design pattern which brings together on-chain oracle dependency with the off-chain conditional state transition.
Chainlink is considered as among the major ranking blockchain technologies. It is a decentralized oracle network that offers secure and tamper-proof outputs and inputs for complex smart contracts on any blockchain.
Understanding the Design Pattern
To understand the new pattern and its application, here is a simple illustration. In a Boolean condition, Bob can receive off-chain payments from Alice through the Celer Network’s service providers. This payment depends on a future condition being true or false.
Since the design has been incorporated into Celer’s generalized state channel gaming, Bob and Alice will pay each other conditionally when the game begins and this will depend on who finally wins a chess game.
Here are some of the benefits of using the new design pattern
• Low Costs
Four on-chain transactions are required to perform a two-party bi-directional betting. The two deposits consist of one made out to the Oracle and the other to the payments distribution. However, with Celer’s layer-2 conditional payment ability, the four on-chain transactions are reduced to one oracle related transaction. Lower costs make micro-conditional-payment possible.
• Enhanced UX
Normally, a complete cycle of the conditional payment may take minutes or even hours, but with Celer’s Networks support, the cycle is complete in milliseconds. The Chainlink-powered trading market aims at achieving the same level of real-time user experience of centralized exchanges on the blockchain. With Celer, users can now submit and cancel orders immediately.
• Improved Privacy
Majority of the condition resolutions and transactions happen off-chain. This means that tracking the senders, recipients or the amount of these funds is difficult because there are no permanent on-chain traces.
The pattern provides extra privacy for the deployment of conditional payment of use cases. It meets confidentiality requirements in cases of insurance, private prediction or derivative market trading.
Developers Using This Design Pattern
App Developers are using the above-mentioned design to build their works. In October 2018 at the ETHSF, several teams such as Air Prediction, Micro-Subscription were seen applying the new technology.
Air Prediction has been faced with the UX challenge of the blockchain prediction market. After Augur’s launch, a lot of changes were anticipated but unfortunately, the user experience wasn’t ideal in that orders still take longer to process. This makes market making impossible which leads to large market spread and inefficiency. Celer helps in market prediction instances by providing a clear concept of conditional off-chain payment.
Micro-Subscription uses the pattern to build an SLA guaranteed micro cloud hosting service. Users can subscribe in small amounts with micropayment. If in case Chainlink oracle services are down, the disbursement is evaluated to be true and the users are rewarded immediately for the loss.
The design pattern is expected to enhance smooth flow and increase the use case development for both Celer and Chainlink.