Coinbase Cloud will leverage its global infrastructure and experience managing blockchain data to enhance the security and reliability of Chainlink's blockchain oracle network.
The US-based cryptocurrency exchange's cloud service will operate as a new node operator on the Chainlink network in a partnership to improve the decentralization of the Web3 ecosystem. Coinbase Cloud's infrastructure already powers several leading blockchains, including Ethereum, Solana, Alg orand, and Aptos. Chainlink node operators are an integral part of the network, responsible for connecting smart contracts on different blockchains to data and systems.
Chainlink builds a bridge between Web2 and Web3 by sourcing, formatting and transferring data to smart contracts. A prime example is the decentralized price feed provided by Chainlink, which secures roughly $22 billion in value locked in decentralized finance (DeFi) protocols, including S ynthetix, Aave, Compound, and dYdX.
Kai Zhao, Group Product Manager at Coinbase Cloud, emphasized the importance of node operators throughout the cryptocurrency ecosystem, ensuring the security and reliability of smart contracts: “By building a decentralized oracle, we are helping to create a more decentralized and trustw orthy future for blockchain technology. We believe on-chain is the next online and we look forward to working with Chainlink to drive this future together .” William Reilly, head of global centralized finance, sales and strategy at Chainlink Labs, added that the newest node operators will add experience and robust infrastructure to the oracle network, benefitting a wide range of Web3 products, services and applications:
“Their [Coinbase Cloud] participation will undoubtedly help in the development of decentralized applications, further propelling the blockchain industry to new heights.”
Coinbase expressed its intention to become a central pillar of the broader Web3 ecosystem in 2021, with Coinbase Chief Product Officer Surojit Chatterjee highlighting its ambition to become the crypto industry's Amazon Web Services. Coinbase Cloud is central to this strategy, with its product suite powering many services across the ecosystem. The service stems from Coinbase's acquisition of blockchain infrastructure provider Bison Trails in early 2021.
Coinbase Cloud's Node platform allows users to create and manage Web3 applications, while the company also launched its own Ethereum layer 2 network called Base in February 2022.
