Google Expands Cloud Services by Integrating Smart Contract Platform Chainlink
Google is expanding its cloud services by integrating the cryptocurrency Chainlink (LINK). This partnership will allow Ethereum programmers using Google software to integrate data from sources outside the blockchain.
Google Bags an Oracle
In a post dated June 13, 2019, Google has officially announced the launch of its partnership with Chainlink, a startup that looks to connect smart contracts to all the external inputs and outputs that are required for functionality.
Google wants to combine Ethereum smart contract technology with its native cloud service BigQuery in order to develop hybrid blockchain and cloud applications that could be useful for transaction privacy, futures contracts, and prediction marketplaces.
Smart contracts were first introduced in 1997 by computer scientist Nick Szabo. They are P2P agreements that rely on blockchain technology and are therefore effectively immutable after they have been registered on the distributed ledger.
This agreement mechanism allows users to commit part of their resources by relying on the fact that the smart contract will be executed automatically without the need for external intervention. But there is a fundamental issue. A problem most users have seen with smart contracts is the reliability of the variables with which the contract is evaluated.
If the data for the smart contracts are not already stored in any on-chain activity, a trusted source of external data will be required in that case. That’s where the role of Chainlink comes in to play.
This data represents resources for various off-chain business processes like SaaS profit sharing mitigating service abuse by characterizing network participants and using static analysis techniques to detect software vulnerabilities and malware.
However, this type of service uses data provided by Google as input for processes that are then carried out outside the blockchain. On the contrary, an on-chain smart contract is limited as it needs to access information that is off-chain.
Chainlink will fill this gap. An oracle will serve as a two-way channel between smart contracts and Google’s BigQuery cloud services.
In the post, Google describes precisely how a smart contract can communicate with their cloud service via the Chainlink oracle, giving three different use cases for this solution:
- Prediction marketplaces.
- Hedging against blockchain platform Risk
- Enabling commit/reveals across Ethereum using submarine sends.
Google concludes that this interoperability technique allows developers to build hybrid applications that take the best of what smart contract platforms and cloud platforms have to offer.
The smart contract integration represents a significant move towards dApp adoption and reflects a very strong market signal for LINK tokens. After the blockchain project shared the news on Twitter, LINK’s price jumped by over 70 percent to hit an all-time high of $1.94 with its market cap touching $680 million.