Chainlink’s latest system upgrade, called Off-Chain Reporting (OCR), is advertised by its CEO, Sergey Nazarov, as something capable of rapidly evolving the whole decentralized finance (DeFi) sector. According to him, Chainlink’s OCR upgrade can bring up to 10 times more data within the chain than before, thus, dramatically boosting DeFi services and offered products. Notably, the OCR is Chainlink’s most massive upgrade to date.
Nazarov states that the upgrade is set to expose Chainlink to the applications it was once incapable of – even beyond the already-impressive price feeds wherein it established its name. Nazarov then added that Chainlink is set to be introduced to a wider set of uses thanks to the OCR.
The new system framework would replace the current on-chain aggregation employed by Chainlink with an off-chain consensus round. Previously, the data aggregation process of Chainlink meant that its nodes would present their independent interpretations of the same data, which a particular smart contract would then verify either on Ethereum or other chains. While this approach has proven to be extremely reliable, it is inefficient regarding gas costs, thus, explaining the outrageously high gas fees. Chainlink’s OCR upgrade aims to rectify just that.
As per the team behind the newly-launched upgrade, OCR will result in a massive decrease in gas fees, reaching even tenfold. Furthermore, even beyond the advertised immediate effects, the Chainlink team also noted that the upgrade would have more positive effects in the days ahead. According to Nazarov, what we are now seeing in the Chainlink network is just the beginning of even brighter days. It is set to do more and more computations off-chain.
While many aspects of Chainlink will indeed be improved due to the OCR upgrade, Nazarov stated that he feels most excited about the fact that Chainlink can now provide vital pieces of the framework to better service smart contracts. He adds that enabling people to build is the key to the rapid growth of the DeFi sector.