Chainlink Data Feeds Go Live on Polygon’s Cutting-Edge zkEVM Blockchain

Key highlights:

• Polygon is taking its zkEVM scaling solution to new heights by integrating Chainlink’s battle-tested Oracle network.
• This will allow apps on zkEVM to access real-world data like prices, rates, and more – fueling the next wave of complex DeFi protocols.
• Analysts think this bodes well for both MATIC and LINK tokens long-term. As more apps are built on zkEVM, MATIC adoption grows. And each new partner makes Chainlink’s Oracle network even more valuable over time.

Polyon’s zkEVM blockchain has just taken a major step forward in its goal of powering the future of decentralized finance (DeFi) with the integration of live data feeds from Oracle giant Chainlink.

What is Polygon zkEVM and how does it differ from the main Polygon PoS network?

While Polygon is best known for its proof-of-stake (PoS) network that runs alongside Ethereum, it has been working on another ambitious project called zkEVM which utilizes zero-knowledge rollup technology to scale Ethereum.

Unlike traditional layer-2 rollups that still require transactions to periodically settle on the base layer, zkEVM aims to provide superior security and speeds through the use of zero-knowledge proofs. This allows transactions to remain private while maintaining the same level of security as Ethereum.

In many ways, zkEVM can be seen as Polygon’s attempt to create an Ethereum killer by addressing the trilemma of scalability, security, and decentralization- the holy grail that has evaded even Ethereum 2.0 so far.

Chainlink Data Feeds are now live on @0xPolygon zkEVM.

Polygon zkEVM developers can now securely build advanced #DeFi apps that combine reliable price data with lightning-fast execution.

Dive in ⬇️https://t.co/wHA0RKR5Kv

— Chainlink (@chainlink) December 14, 2023

How will Chainlink data feeds benefit developers building on Polygon zkEVM?

By integrating Chainlink’s Oracle network, developers building applications on Polygon’s zkEVM can now retrieve critical real-world data and incorporate it into their smart contracts.

This ranges from simple price feeds for assets to more sophisticated data points around things like exchange rates, supply chain data, and even IoT sensor readings. Access to this live external data is crucial for powering the next generation of complex DeFi protocols.

As Polygon co-founder Sandeep Nailwal notes, large DeFi protocols like AAVE already rely on Chainlink oracles to function properly. Integrating with zkEVM removes a major barrier for these same protocols looking to utilize Polygon’s scaling and achieve greater throughput.

In plain English, it means DeFi apps can start to offer similar services on zkEVM as on Ethereum, but in a faster and more affordable manner for end users.

How might these developments impact MATIC and LINK prices going forward?

For Polygon (MATIC), many analysts see this partnership as another stepping stone in the project’s goal of becoming the leading Ethereum scaling solution. As more developers and DeFi protocols make their way to zkEVM, it should drive further adoption of the MATIC token.

As for Chainlink (LINK), oracles continue to gain more strategic integrations that strengthen the overall network effect. Each additional blockchain or platform that Chainlink partners with expands its potential user base.

There’s also an argument that increased usage of oracles could create more transaction volume and revenue opportunities for the Chainlink network over the long run. All of this suggests the price of LINK may continue grinding higher as Chainlink consolidates its role as the de facto oracle provider.

The integration of Chainlink data feeds on Polygon zkEVM represents a major win for both projects and their respective native tokens. It paves the way for an entire new generation of DeFi protocols to take advantage of zkEVM’s speed and security while leveraging critical on-chain data from Chainlink oracles.