Orchid Launches Second Chainlink Oracle Live on Mainnet to Better Determine Network PricingSep 21, 2020
Orchid has extended its collaboration with Chainlink, a network of decentralized oracles, with the introduction of a new tool that makes it easier for Orchid users to determine the price of VPN bandwidth. Chainlink is the market leader in decentralized oracles, currently securing over $3 billion in USD value by providing reliable price feeds to many leading DeFi applications such as Aave and Synthetix.
We are thrilled to announce that our second oracle created together with Chainlink is now live in the Orchid app. It's designed to aggregate information from Orchid providers to give users a better estimate of the cost of bandwidth. It acts as a "secret shopper" that samples bandwidth pricing from all the providers on Orchid, synthesizing the data into generalized pricing information for users. This will make it easier for people to estimate the price of services on the network.
The Orchid app uses this bandwidth price to calibrate some of the payment rates to ensure the user gets a fair price for bandwidth. Knowing the average market price of bandwidth is important for determining if any over-charging has occurred on the network.
The first oracle -- already up and running for months now -- is an OXT/USD price feed, giving users the ability to price VPN bandwidth in U.S. dollars. Chainlink's decentralized price oracle helps limit the distorting effect of short-term pricing volatility by smoothing moment-to-moment price fluctuations. This provides a more consistent and accurate understanding of the price of OXT than sampling the spot price at a given instant.
Combined, the two oracles serve a joint function of letting people estimate the approximate cost of bandwidth on Orchid, both in OXT and U.S. dollars. Put simply, the OXT/USD oracle allows people to understand OXT price movements relative to USD, while the second allows users to estimate how much their bandwidth is likely to cost. Together, they can be used to project how much service a given amount of USD is likely to purchase. This vastly improves the user experience on Orchid protocol.
Chainlink oracle networks are powered by an aggregation of numerous independent, Sybil resistant node operators that source data from multiple independent, high quality data sources. This decentralized framework provides highly available, accurate, and manipulation-resistant data with strong market coverage across all relevant sources.
"Our ongoing collaboration has led to the development and launch of a second tool for Orchid users that leverages Chainlink oracles to obtain a more refined estimate on the current OXT cost of VPN bandwidth.," said Orchid Co-Founder and CEO Dr. Steven Waterhouse. "We're excited to continue working with Chainlink as we constantly strive to improve the experience for Orchid users and help bring Internet privacy to more people."
"We're excited to extend our collaboration with Orchid by helping them launch another Chainlink-powered decentralized oracle, one which empowers users with key off-chain data to enhance their user experience on the Orchid Network," states Daniel Kochis, Head of Chainlink Business Development. "Chainlink's decentralized architecture delivers highly accurate and manipulation resistant price data for pricing bandwidth, allowing users to trust that they are receiving the fair market price for bandwidth."
Orchid takes a new approach to digital privacy with the first peer-to-peer, incentivized privacy network. On the network, anyone can buy and sell bandwidth using the Orchid digital currency (OXT). Users can browse privately and access content without being limited by their geography. With its decentralized design, multi-hop architecture, and Open Source ethos, Orchid offers users unprecedented digital privacy in a trustless context.
If you're a developer and want to quickly get your application connected to Chainlink Price Reference Data, visit the developer documentation and join the technical discussion in Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Bancor; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.