Coinbase Cloud, the Web3 infrastructure unit of Coinbase, has announced that it will become a Chainlink (LINK) oracle node operator to enhance smart contract security. In a statement shared with CryptoSlate on May 18, Coinbase Cloud stated that Chainlink plays a significant role in providing real-world data for Web3 through decentralized Oracle networks. Since many Web3 projects rely on this external data, Coinbase Cloud’s entrance to the space will now make it a part of the decentralized oracle network powering Chainlink Data Feeds. Coinbase Cloud is already running nodes and managing blockchain data infrastructure on networks like Aptos (APT), Ethereum (ETH), Flow, Solana (SOL), and Algorand (ALGO). The addition of Chainlink will enhance its credentials as a significant player in the Web3 ecosystem. Coinbase Cloud Group Product Manager Kai Zhao said that the development is a testament to its “commitment to the security and reliability of smart contracts.” Zhao added that “by building decentralized Oracles, we are helping to create a more decentralized and trustworthy future for blockchain technology.”
Chainlink’s Response to Coinbase’s Move
Chainlink Labs’ global head of centralized finance, sales, and strategy, William Reilly, corroborated the statement. Reilly said that Coinbase’s extensive experience, robust infrastructure, and commitment to security make them an invaluable addition to the Chainlink ecosystem, and their involvement will undoubtedly contribute to the advancement of decentralized applications, further propelling the blockchain industry to new heights.
Coinbase’s Web3 Products
Coinbase has several products designed to cater to the needs of Web3 users. The exchange’s Node product enables users to create and deploy their Web3 applications. The platform has also launched an Ethereum Layer-2 solution, Base.According to Yahoo Finance, Coinbase stocks have reacted positively to the news, rising 5.46% in the last 24 hours to $61.04.
Coinbase joins a list of high-profile companies that have become node operators or offer such infrastructures to operators. Amazon and Deutsche Telekom also offer Web3 infrastructure through their subsidiaries. Coinbase Cloud’s move to become a Chainlink oracle node operator will improve smart contract security and will further contribute to the advancement of decentralized applications, propelling the blockchain industry to new heights.