ChainLink (LINK) Oracle has moved to xDai, an Ethereum side chain that is becoming increasingly dependent on DApp developers who cannot survive on the Ethereum network.

Chainlink said on Thursday that the price channel is available on the xDai network, and provides price data for a first set of trading pairs, including LINK / USD, AAVE / USD, DOT / USD and SUSHI / USD. The company said more pairs could be added quickly if there was demand.

The integration was completed by Protofire, development workshop xDai and auditor. The team received a Chainlink Community Grant for the original release of Chainlink Oracles on xDai, including a premium-connected switch that allows original LINK payments to be made for Oracle jobs.

Integration with Chainlink price stream is the latest in positive news about the implementation of the xDai project. The network has already been major Ethereum-based DApps such as Perpetual Protocol, a derivative platform, and Omen, a prediction market developed by Gnosis. The inclusion of the original Chainlink oracles removes a major barrier for projects that depend on them, which can open xDai for more DApps who want to get away from the crowded Ethereum network.

Decentralization is fine, but gas does not pay off
xDai is a relatively central side chain blocked by an independent audit team. Side chains are a type of chain where an autonomous blockchain uses another token as the original currency to pay transaction fees – in the case of xDai it is the token MakerDAOs Dai. The architecture combines the economy of the two environments, but the side chain is a completely independent unit with its own safety rules.

In the Ethereum community, xDai is known as the central tier 2 solution. The project, launched by the PoA network, points directly to centralization – Evidence of authority is a somewhat euphemistic name for a consensus model where auditors are chosen by the project’s insiders instead of society.

Since its launch, the xDai chain has moved to a Proof-of-Stake model that is very similar to the one used by EOS or Binance Smart Chain. The total number of auditors can not exceed 19, compared to tens of thousands of auditors in the Ethereum signal chain. The advantage of this architecture is faster scalability as xDai offers 70 announced transactions per second for simple token transfers.

Speaking to Cointelegraph, Frederic Ernst, COO of Gnosis, agreed that xDai is somewhat centralized:

“It goes without saying that it is not decentralized as the main network. This is clear for a wide range of uses: you will not do anything on xDai when you need a Level 1 financial consensus guarantee. But for many things, you do not. they are really needed. ”
The appeal of XDai is due in part to its almost complete compatibility with Ethereum. OmniBridge allows any token to be transferred to xDai and vice versa, and the blockchain architecture is almost identical to Ethereum. This makes it easier to port DApps or infrastructure elements such as oracles.

It seems that problems are not enough to stop the adoption. Chainlink believes that developers’ demand is being tracked, and Johan Ed, head of integration at Chainlink Labs, tells Cointelegraph that “smart contract developers should be able to work with which chain is best for their use.”

Ernst explained that for Omen, the decision to open a store on xDai was an urgent matter:

“In most cases, gas costs outweigh the disadvantages of being in the PoA chain. The fact is that while people are opting for many second step solutions, very few are in the pipeline.
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The growing adoption of xDai, or Binance Smart Chain, seems to be at odds with the crypto-community’s preference for decentralization. Ethereum fans often believe that the spread of DeFi on the blockchain is a result of its decentralized architecture and community spirit. In fact, the increase in the use of blockchains such as Tron or BSC came after it became clear that Ethereum could not cope with the load.

At the same time, decentralization alone does not seem to be enough. For example, blockchain is most similar to Ethereum Ethereum Classic, which was formed by a society that felt that Ethereum was not decentralized enough. Practically not interested in DApp developers.

More centralized solutions have a huge advantage for her – they are currently working. A Layer 2 roll-based solution is still under development, with Optimistic Rollups being the closest to dropping. Ernst was not particularly happy with the weekly rejection of the wait. “I’m a big fan of zkRollups. There are no restrictions on withdrawals, but the technology is not yet sufficiently developed.

Source: CoinTelegraph

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