Web3 is transforming how developers build digital applications—offering unprecedented levels of ownership, transparency, and reliability. With the ability to create systems that run exactly as coded and cannot be arbitrarily shut down, Web3 empowers users to fully control their data, assets, and agreements. This shift isn’t just technological—it’s inevitable. As consumer demand grows for true ownership and trust-minimized interactions, developers are turning to platforms that make building on these principles seamless.
Enter Chainlink, the industry-standard Web3 services platform designed to provide a universal connectivity layer between blockchains and the real world. By enabling secure access to off-chain data, computation, and cross-chain communication, Chainlink equips builders with the tools they need to innovate confidently. In Q2 2023, Chainlink made significant strides across its core pillars: data, compute, and cross-chain interoperability.
What sets Chainlink apart is the network effect it creates—once a blockchain integrates with Chainlink, developers gain instant access to a growing suite of battle-tested services built on the same trusted oracle infrastructure. This synergy fuels what we call the Chainlink Effect: a surge in developer activity and ecosystem growth following integration.
This update highlights key developments from Q2 2023, showcasing how Chainlink continues to evolve as the foundational layer for next-generation Web3 applications.
Data: Powering On-Chain Finance with Trusted Oracles
At the heart of decentralized applications lies reliable data. Chainlink Data Feeds serve as the secure bridge between real-world events and smart contracts, delivering accurate price updates, interest rates, and volatility metrics with high availability and tamper resistance.
Focus Areas: Tokenized Assets & Derivatives
Chainlink is doubling down on on-chain finance, particularly in support of tokenized real-world assets (RWAs) and on-chain derivatives. As more traditional financial instruments move onto blockchains—from bonds to commodities—there’s an increasing need for precise, real-time pricing and risk data.
Tokenized assets offer faster settlement, greater liquidity, and enhanced composability compared to legacy systems. To unlock their full potential, however, they require robust oracle solutions capable of supporting complex financial primitives like interest rate swaps, futures contracts, and volatility-based options.
👉 Discover how leading DeFi platforms leverage real-time data feeds for financial innovation.
Recent Deployments
- Low-latency Oracle Integration with GMX: A landmark fee-sharing agreement was established between GMX and Chainlink, where 1.2% of GMX V2 protocol fees will go to Chainlink service providers. This collaboration enhances DeFi’s economic sustainability while accelerating adoption of low-latency oracles. The beta is live on Arbitrum Goerli.
New Rate & Volatility Feeds: Chainlink launched new data products including:
- Bitcoin Interest Rate Curve (1-day, 1-week, 2-week) on Ethereum Mainnet
- ETH Staking APR Feeds (30-day, 90-day) on Sepolia testnet
- Realized Volatility Feeds across multiple testnets (Avalanche Fuji, Polygon Mumbai, etc.)
These feeds are foundational for derivative pricing models and risk management.
- Celo Joins Chainlink Scale Program: With 99.9% approval in an on-chain vote, Celo officially joined the Scale program—unlocking access to a full suite of Chainlink services and signaling strong ecosystem alignment.
What’s Next
- Launch low-latency Data Feeds on Arbitrum mainnet for GMX V2
- Expand rate and volatility feeds to additional mainnets
- Support new asset classes including FX pairs and physical commodities
- Onboard more blockchains based on market demand and Scale program participation
Chainlink Functions: Serverless Compute for Smart Contracts
Smart contracts can now interact directly with external APIs through Chainlink Functions, a serverless developer platform that enables custom off-chain computations in minutes.
Developer Momentum Builds
Since its beta launch at ETH Denver on Polygon Mumbai and Ethereum Sepolia, over 2,200 developers have joined the program—including 435 participants from the Chainlink Spring Hackathon. Use cases range from fetching U.S. Treasury yields to integrating Google Maps distances and live flight statuses into dApps.
“Space and Time used Chainlink Functions to create dynamic NFTs powered by real-time data—showcasing the creative potential of connected smart contracts.”
Recent Progress
- Expanded beta availability to Avalanche testnet
- Hosted a Functions Masterclass with over 1,650 registrants, guiding developers through their first function deployment
Roadmap Ahead
- Simplify trial experience for new developers
- Incorporate community feedback to refine UX ahead of mainnet launch
- Enable broader API integrations and error handling improvements
Proof of Reserve: Ensuring Transparency for Tokenized Assets
Trust is earned through verifiable proof—not promises. Chainlink Proof of Reserve (PoR) provides automated, on-chain attestations verifying that tokenized assets are fully backed by off-chain or cross-chain reserves.
Target Use Cases
PoR is critical for:
- Real-World Assets (RWAs): Ensuring tokens representing real estate, bonds, or commodities are backed by actual holdings
- Liquid Staking Tokens (LSTs): Confirming 1:1 backing between staked ETH and issued LSTs
- Stablecoins: Enabling mint/burn controls based on verified reserve levels
Key Launches
- First PoR feed for an LST via integration with Swell Network
- First PoR feed for an RWA index token with Alongside Finance
“Extreme transparency is at the core of Alongside, and Chainlink Proof of Reserve helps us deliver that.” —Austin Diamond, Co-Founder at Alongside
Future Plans
- Broaden integrations with RWA and LST protocols
- Extend support to multi-currency stablecoins (e.g., EUR-backed tokens)
- Enable cross-chain reserve verification for bridged assets
DECO: Privacy-Preserving Data Proofs
Chainlink DECO leverages zero-knowledge proofs to allow users to prove data authenticity from HTTPS sources without revealing the underlying content—ideal for identity verification, credit scoring, and compliance.
Research & Development Focus
The Chainlink Labs Research team is advancing DECO from academic concept to production-ready tooling. Recent work explores:
- Interactive zero-knowledge protocols
- Optimizations for scalability and cost-efficiency
- Integration patterns for enterprise use cases
What’s Coming
- Launch of a builder-friendly sandbox environment
- Developer documentation and use-case templates for KYC/AML, insurance claims, and private data sharing
Compute: Automation & Verifiable Randomness
Chainlink Automation – Decentralized DevOps
Automation removes the need for self-hosted infrastructure by triggering smart contract functions reliably and securely.
Recent Milestones
- Live on Optimism mainnet, adopted by BarnBridge, Lyra, Pickle Finance, and DefiEdge for use cases like limit orders and yield harvesting
- Beta launch of Automation 2.0 on seven testnets featuring a consensus-based model that improves security and reduces gas costs
“Using Chainlink’s decentralized automation network ensures our options settlements are never delayed.” —Josh Kim, Senior Developer at Lyra
Upcoming Goals
- General availability of Automation 2.0
- New trigger types (time-based, conditional, event-driven)
- Pre-built templates combining Automation with VRF and Proof of Reserve
Chainlink VRF – Tamper-Proof Randomness
As the most widely used randomness solution in Web3 (over 15.8M requests fulfilled), VRF powers fair outcomes in gaming, NFT mints, and protocol mechanics.
Q2 Highlights
- Launched on Arbitrum One mainnet with sub-two-second latency
- Integrated into Thirdweb’s Pack Contract, simplifying adoption for game studios
- Adopted by Lotte Corporation for its NFT projects across Asia and beyond
👉 See how top NFT projects use verifiable randomness to ensure fairness.
Looking Ahead
- Develop VRF v3 with improved architecture and UX
- Launch VRF Accelerators—a toolkit of templates and best practices
- Expand SDK support across popular development frameworks
Cross-Chain Interoperability Protocol (CCIP)
CCIP is the future of secure cross-chain communication—enabling safe transfer of tokens, data, and programmable instructions between any chains.
Real-World Adoption Grows
Chainlink announced a major collaboration with Swift and over a dozen financial institutions—including Citi, BNY Mellon, Euroclear, and DTCC—to explore blockchain interoperability for tokenized asset settlement.
“There’s unlikely to be a single prevailing blockchain network… That’s why we’re working with Swift to develop a global interoperability model.” —Tom Zschach, Chief Innovation Officer at Swift
Development Status
- Completed initial audits via Code4rena
- Ongoing testing with beta partners across five testnets
- Risk Management Network actively monitoring for anomalies
Next Steps
- Finalize security audits before mainnet launch
- Onboard additional enterprise partners
- Roll out mainnet access first to beta participants
Chainlink Developer Community: Global Reach & Hands-On Learning
Developer engagement surged in Q2 with over 13,000 hackathon registrants and 496 projects submitted during the Spring Hackathon. Workshops covered cutting-edge topics like:
- Integrating ChatGPT via Chainlink Functions
- Using Rates & Volatility Feeds
- Pulling AWS data on-chain
- Building Web3 games with Chainlink services
Global bootcamps were held in Brazil, Thailand, Vietnam, Turkey, China (Hangzhou & Wuhan), Serbia, Portugal (EthLisbon), and Singapore—with corporate sponsorships from AWS, Google, Meta, EY, and PwC.
Community grants supported open-source tools like:
- Web3.js Chainlink Plugin
- Dev3 Chainlink SDK
- Chainlink Functions Demo dApp
👉 Join thousands of developers building the future of Web3—start your journey today.
Frequently Asked Questions (FAQ)
Q: What is the Chainlink Effect?
A: The Chainlink Effect refers to the rapid increase in developer activity and ecosystem growth observed after a blockchain integrates with Chainlink. A single integration unlocks access to multiple services—spurring innovation across DeFi, NFTs, gaming, and enterprise applications.
Q: How does Chainlink ensure data accuracy?
A: Chainlink uses decentralized oracle networks with multiple independent node operators. Data is aggregated from premium sources and secured through cryptographic proofs and reputation systems—ensuring high reliability and resistance to manipulation.
Q: What makes CCIP different from other cross-chain solutions?
A: CCIP combines universal connectivity with a dedicated Risk Management Network that actively monitors transactions for suspicious activity. This proactive security layer makes it ideal for enterprise-grade asset transfers.
Q: Can I use Chainlink Functions without writing backend code?
A: Yes! Chainlink Functions is a serverless platform that lets you connect smart contracts directly to APIs using JavaScript—no backend infrastructure required.
Q: Is Proof of Reserve only for stablecoins?
A: No. While commonly used for stablecoins, Proof of Reserve also applies to liquid staking tokens (LSTs), tokenized real estate, treasury-backed tokens, and any asset requiring off-chain reserve validation.
Q: When will CCIP launch on mainnet?
A: Mainnet launch is expected soon after final security audits and successful completion of beta testing with financial institutions.
Chainlink remains focused on executing its vision: a world where digital agreements are fair, accurate, and guaranteed—not just promised. With continuous innovation across data, compute, and cross-chain capabilities, Chainlink is laying the foundation for a truly interconnected Web3 economy.
Thank you to every builder, partner, and community member contributing to this mission. Together, we’re building a world powered by truth.