The evolution of Web3 is accelerating, and with it comes the undeniable need for connectivity. For decentralized applications to reach their full potential—across finance, gaming, identity, and beyond—they must be able to securely access real-world data, off-chain computation, and other blockchains. Chainlink continues to lead this transformation as the industry-standard Web3 services platform, empowering developers to build next-generation dApps that are more powerful, transparent, and user-centric.
At the heart of Chainlink’s mission is solving three critical disconnects in blockchain technology:
- Data isolation from Web2 systems
- Limited on-chain computation capacity
- Lack of cross-chain interoperability
By bridging these gaps, Chainlink enables developers to create smart contracts that interact seamlessly with external environments—unlocking use cases across DeFi, NFTs, tokenized real-world assets (RWAs), gaming, and enterprise applications.
This Q1 2023 product update outlines our progress since SmartCon 2022, highlighting recent deployments, ongoing research, and upcoming innovations across Chainlink’s core services.
Data: Expanding On-Chain Access to Real-World Information
Chainlink Price Feeds remain the industry standard for secure and reliable price data, currently deployed on 16 blockchains and securing over $7 trillion in transaction value since early 2022. But DeFi’s potential extends far beyond spot markets—especially when it comes to derivatives.
With global derivatives markets exceeding $1 quadrillion in notional value, on-chain expansion requires more than just price data. It demands low-latency delivery, richer metadata, and new financial benchmarks.
👉 Discover how developers are leveraging real-time data to build the future of DeFi.
Recent Deployments
- NFT Floor Price Feeds launched on Ethereum mainnet in partnership with Coinbase Cloud, enabling NFT-backed lending and borrowing through tamper-proof pricing.
- Chainlink Price Feeds are now available on StarkNet and Base testnets, supporting developer innovation on emerging Layer 2 ecosystems.
- Both StarkWare and Base have joined the Chainlink Scale program, reinforcing collaboration for scalable Web3 infrastructure.
What’s Next in Data
- Low-Latency Oracle Design: A new architecture to reduce frontrunning risks and gas costs while enabling faster updates—critical for derivatives protocols.
- CL_bid and CL_ask Data Points: Alongside CL_price, these will provide insight into market liquidity, bid-ask spreads, and imbalance conditions—empowering better risk modeling.
- CF Bitcoin Interest Rate Curve (BIRC): A manipulation-resistant benchmark for Bitcoin interest rates, enabling interest rate swaps, leveraged position recalibration, and improved lending markets.
- Digital Asset Classification System (CF DACS): A standardized taxonomy for digital assets to improve portfolio analysis and risk management.
- Staked ETH APR Feed: Providing a “risk-free” rate proxy for Ethereum staking, enabling fixed-for-variable yield swaps and enhanced financial modeling.
- Expansion of Price Feeds to additional chains based on demand and Scale program participation.
- Enhanced frontend experience at data.chain.link with improved visualizations and detailed feed analytics.
Developers interested in integrating these advanced data products can submit inquiries directly through Chainlink’s developer portal.
Functions: Connecting Smart Contracts to Any Web2 API
One of the most requested capabilities from the Chainlink developer community has been the ability to bring custom external data on-chain. With 80% of hackathon-winning projects requiring external API access, the need was clear.
Chainlink Functions solves this by offering a serverless Web3 development platform that allows smart contracts to connect securely to any Web2 API—whether it’s AWS, Meta, Google Cloud, or the Associated Press.
This opens up hybrid applications combining on-chain logic with off-chain data processing—such as AI-driven insights, social media triggers, or real-time messaging.
Recent Deployments
- Chainlink Functions Beta launched on Polygon Mumbai and Ethereum Sepolia testnets.
- Example integrations showcased with AWS, Meta, and AP demonstrate practical use cases in AI, governance, and content verification.
- Projects like Block Scholes, ChainML, Dopex, and Thirdweb are already testing Functions in production-like environments.
What’s Next
- Collect feedback during beta to refine developer tools and improve usability.
- Mainnet rollout planned for 2023, followed by expansion to additional blockchains.
- Introduction of off-chain triggers and customizable DON (Decentralized Oracle Network) sizes for greater flexibility.
👉 See how you can integrate AI models into your dApp with just a few lines of code.
Proof of Reserve: Ensuring Trust in Tokenized Assets
As over $46 trillion in real-world assets remain largely off-chain, secure tokenization requires verifiable collateralization. Chainlink’s Proof of Reserve (PoR) provides autonomous, cryptographically verifiable assurance that on-chain tokens are backed by real off-chain reserves.
This is crucial for stablecoins, bridged assets, and RWAs—where transparency prevents systemic risks like infinite mint attacks.
Recent Deployments
- TUSD became the first USD-backed stablecoin to programmatically control minting using real-time PoR verification on Ethereum.
- Aave and BENQI integrated cross-chain PoR on Avalanche to ensure bridged assets are fully collateralized before being used as loan collateral.
What’s Next
- Exploring PoR applications for liquid staking tokens with select test partners.
- Supporting institutional adoption of tokenized real-world assets with enhanced verifiability.
DECO: Privacy-Preserving Oracles for Sensitive Data
Web3 should empower users without compromising privacy. Chainlink DECO enables zero-knowledge proof-based verification of data from HTTPS sources—allowing individuals to prove facts (e.g., credit score, employment status) without revealing underlying personal information.
This unlocks use cases in identity, KYC, undercollateralized lending, and healthcare—all while minimizing trust assumptions.
Recent Progress
- Alpha tests completed with Teller, Clique, Burrata, and PhotoChromic, yielding valuable feedback for protocol improvements.
What’s Next
- Launch of a sandbox environment for developers to experiment with DECO and apply it to custom data sources.
Compute: Automation & Verifiable Randomness
Automation
Reliable execution of smart contract functions is essential for DeFi operations like liquidations, reward distribution, and dynamic NFT updates.
Chainlink Automation provides decentralized task scheduling with high reliability and gas efficiency.
Recent Deployment
- Live on Arbitrum mainnet, expanding Layer 2 automation support.
What’s Next
- Automation 2.0: Improved security, gas efficiency, and developer tooling.
- Support for REST API integration and event-based triggering from other smart contracts.
VRF (Verifiable Random Function)
Fair randomness is foundational for gaming, NFT mints, and lottery systems. Chainlink VRF delivers cryptographically provable randomness across Ethereum, BSC, Polygon, Avalanche, and Fantom.
What’s Next
- Next-gen VRF under development using threshold signatures and a more distributed architecture for enhanced performance and resilience.
Fair Sequencing Services (FSS)
To combat malicious MEV like frontrunning and sandwich attacks, FSS introduces fair transaction ordering via:
- Secure causal ordering (threshold encryption)
- Temporal ordering (FIFO policy)
Recent Deployment
- Proof-of-concept live on Sepolia testnet
What’s Next
- Potential pilot deployment following further testing and refinement.
Cross-Chain Interoperability Protocol (CCIP)
In a multi-chain world where over $170 billion has been bridged, secure cross-chain communication is vital. CCIP offers a universal standard for transferring tokens, data, and instructions across chains—with programmable token transfers enabling complex workflows.
Secured by Chainlink’s decentralized oracle networks, CCIP aims to prevent the $2B+ in losses seen from interoperability hacks.
Recent Progress
- Alpha testing underway with 25 partners across governance, gaming, NFTs, and DeFi.
- Near feature-complete for initial mainnet implementation.
What’s Next
- Finalize external audits for security hardening.
- Launch mainnet beta with early access for testing partners before general availability.
Developer Community Building
Developers are the builders of Web3. Chainlink Labs continues to invest in community growth through grants, bootcamps, hackathons, and tooling.
Recent Initiatives
Grants awarded for:
- Hardhat plugin for Chainlink integration
- Foundry toolkit for local node testing
- Global bootcamps held at Zhejiang University (China), Ho Chi Minh University (Vietnam), and University of East London
- Sponsorship of ETHDenver’s Camp BUIDL, ETHPorto Hackathon, Devfolio x Superfluid events
Upcoming Events
- ETHSamba / ETHRio (March 27 – April 2): Workshops and conference participation
- Game Developers Conference (GDC) March 20–24: Developer workshop and demo featuring dynamic NFTs
- University workshops expanding across China
Frequently Asked Questions
Q: What makes Chainlink different from other oracle networks?
A: Chainlink combines decentralization, cryptographic security, real-world data reliability, and a broad suite of services—including price feeds, automation, VRF, CCIP, and privacy-preserving DECO—making it the most comprehensive Web3 services platform.
Q: How does Chainlink ensure data accuracy?
A: Through decentralized aggregation of multiple independent node operators, reputation systems, cryptographic proofs, and regular monitoring via Proof of Reserve and other verification mechanisms.
Q: Can non-developers benefit from Chainlink’s ecosystem?
A: Yes. End users gain trust through transparent stablecoins, fair gaming experiences, secure cross-chain bridges, and verifiable financial products—all powered by Chainlink infrastructure.
Q: Is Chainlink expanding beyond DeFi?
A: Absolutely. Use cases now span NFTs, gaming, insurance, supply chain tracking, enterprise systems, identity verification, and tokenized real-world assets.
Q: When will CCIP be available on mainnet?
A: CCIP is nearing feature completion and undergoing final audits. A mainnet beta launch is expected soon, with early access for current test partners.
Q: How can I start building with Chainlink?
A: Visit chain.link for documentation, developer tools, tutorials, and access requests for services like Functions and CCIP.
Chainlink remains at the forefront of Web3 innovation—connecting blockchains to the world while ensuring security, fairness, and scalability. As adoption grows across industries, our commitment stays firm: empower builders with the tools they need to create a more transparent, equitable digital future.