A NEW CARDANO-BASED PROJECT IS HANDLING ORACLES A LOT DIFFERENTLY THAN CHAINLINK

Last updated: June 19, 2025, 21:23 | Written by: Mike Novogratz

A New Cardano-Based Project Is Handling Oracles A Lot Differently Than Chainlink
A New Cardano-Based Project Is Handling Oracles A Lot Differently Than Chainlink

The blockchain world is constantly evolving, with new projects emerging to tackle existing challenges in innovative ways. New Cardano-based project handles Oracles a lot different than Chainlink A New EraA Better World Cardano - ADA - DeFi Blockchain 3.0 Cryptocurrency SmartContracts Decentralized ChainLinkOne such challenge is the integration of real-world data into blockchain ecosystems, a crucial function handled by oracles.Cardano, with its commitment to a scientifically driven and layered approach, is venturing into the realm of data oracles as it prepares for the Goguen era, which will bring smart contract functionality to the platform.But unlike Chainlink, the current dominant player in the oracle space, Cardano is forging its own path, prioritizing decentralization, transparency, and a unique pool-based system.This article delves into how a new Cardano-based project is handling oracles differently than Chainlink, exploring the technological approaches, partnerships, and potential impact on the Cardano ecosystem and the broader blockchain landscape. In reality, Ergo are still working on Oracles for Cardano and on paper, they will be better/ more cost-efficient than Chainlink also most of the supposed blue-chip dapps/ defi in the mean time appear to have opted to work with Charli3 for now, given they are one of the first native oracles building on Cardano.Will this new approach dethrone Chainlink, or carve out a niche in the Oracle landscape?

Understanding the Oracle Problem and Its Importance

Blockchains, by design, are isolated environments.They can only access data that resides within their own network.However, many blockchain applications, especially those involving decentralized finance (DeFi), require real-world data such as price feeds, weather information, or election results.This is where oracles come in.

Oracles act as bridges between the blockchain and the outside world, providing the necessary data for smart contracts to execute based on real-world events.Without reliable oracles, smart contracts are limited in their functionality and potential applications. Will Cardano rely on its oracles or integrate Chainlink's? Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.The reliability and accuracy of the data they provide is paramount.Imagine a decentralized insurance contract paying out based on incorrect weather data; the entire system would fail.

The Chainlink Approach: A Dominant Force

Chainlink has established itself as the leading oracle provider in the blockchain space. Chainlink services are powered by decentralized oracle networks with a long track record of high availability, reliability, and data accuracy. Universal interoperability Chainlink connects existing systems to any public or private blockchain and enables secure cross-chain communication.Its approach involves creating decentralized oracle networks (DONs) powered by a network of independent node operators.These operators are incentivized to provide accurate data, and their performance is tracked and reputation is built up over time.

Chainlink's strengths include:

  • High Availability: The decentralized nature of DONs ensures that data is always available, even if some nodes fail.
  • Reliability: The network's architecture and incentive mechanisms promote data accuracy.
  • Data Accuracy: Multiple nodes provide data, and aggregation mechanisms help ensure accuracy.
  • Universal Interoperability: Chainlink can connect to any public or private blockchain.

However, Chainlink's model also has some drawbacks, including potential centralization issues and the need for off-chain agreements and business deals with validator nodes.

Cardano's Unique Vision for Oracles

Cardano is taking a different approach to oracles, focusing on:

  • Decentralization: Emphasizing permissionless and decentralized Oracle pool models.
  • Transparency: Utilizing transparent oracle frameworks.
  • Native Integration: Building oracles specifically designed for the Cardano ecosystem.

This approach aims to address some of the perceived limitations of existing oracle solutions and create a more robust and decentralized data infrastructure for Cardano's growing ecosystem.

Orcfax: A Pioneer in Permissionless Oracle Pools

Orcfax is one example of a Cardano-based project implementing a permissionless and decentralized Oracle pool model.This model departs from the traditional approach of having off-chain business deals and contracts with hand-picked validators. A new Cardano-based project is handling oracles a lot differently than ChainlinkSource: CointelegraphPublished onInstead, Orcfax allows anyone to participate in the validator network, fostering greater decentralization.

The advantage of the pool concept is that every decentralized application (dApp) or smart contract in the Cardano ecosystem can consume data from these Oracle pools. That s the role of an oracle. Oracles can provide many types of data. These might include financial prices, weather updates, election results, supply chain activity, and more. Any piece of information that exists in the real world but is needed by a blockchain-based application has to come through some kind of oracle system.Large Oracle pools can be created, and data will be highly accurate as many Oracles participate in providing data.

DIA: Enhancing Cardano's Data Capabilities

DIA (Decentralized Information Asset) offers a robust, decentralized, and transparent oracle framework widely utilized across various blockchain networks.Integrating DIA into Cardano would significantly boost its capacity to support real-world use cases by making trustless off-chain data available to smart contracts. Orcfax's ongoing Incentivized Testnet (ITN) is a major step in enhancing the decentralized oracle infrastructure on the Cardano blockchain. Instead of having off-chain business deals and contracts with hand-picked validators, Orcfax is implementing a permissionless and decentralized Oracle pool model for its validator network.This partnership would allow Cardano developers to easily access a wide range of data feeds for their applications, fostering innovation and growth within the Cardano ecosystem.

EMURGO, Ergo and Charli3: Key Players in Cardano's Oracle Development

Cardano is partnering with key companies within and outside its ecosystem to build out its oracle infrastructure. Cardano setzt ab sofort auf Oracles, eine Methode zur Dateneinbindung, ehe das Goguen-Upgrade zu einem sp teren Zeitpunkt Smart Contracts einbaut und damit eine klare Abgrenzung zu vergleichbaren Blockchain-Projekten wie Chainlink schafft. Die ersten neuen Oracles werden in Zusammenarbeit mit EMURGO und Ergo (ERG), zwei Firmen aus dem CardanoEMURGO, a founding entity of Cardano, and Ergo (ERG) are collaborating on the development of initial oracle solutions.These first oracles deployed on Ergo will be crucial in testing and refining Cardano's approach.

However, other projects are also emerging in the Cardano oracle space. Will Cardano rely on its oracles or integrate Chainlink's?[BREAK] Cardano is getting into data oracles ahead of the Goguen era that will add smart contract functionality, taking a different approach than Chainlink.[BREAK] The first oracles are being built in partnership with EMURGO, one of the companies in the Cardano ecosystem, and Ergo.[BREAK] The first two oracles are deployed on Ergo andCharli3, for example, is one of the first native oracles building directly on Cardano and is already being adopted by several dApps and DeFi projects.This highlights the diverse and evolving landscape of oracles within the Cardano ecosystem.

Comparing Cardano's Oracle Approach to Chainlink

Here's a table summarizing the key differences between Cardano's oracle approach and Chainlink:

Feature Chainlink Cardano (e.g., Orcfax)
Decentralization Decentralized Oracle Networks (DONs) but potential for centralization among large node operators Permissionless Oracle pools, allowing anyone to participate
Transparency Varies depending on the specific oracle network Emphasis on transparent oracle frameworks
Integration Universal interoperability, connects to various blockchains Native integration within the Cardano ecosystem
Governance Off-chain business deals and contracts with validators Decentralized governance through pool participation

As you can see, Cardano is striving for a more open and permissionless oracle system compared to Chainlink's more established and structured network.

The Importance of Native Oracles for Cardano

Building native oracles specifically for Cardano offers several advantages:

  • Optimized Performance: Native oracles can be optimized for Cardano's unique architecture and Plutus smart contracts.
  • Lower Latency: Data delivery can be faster and more efficient within the Cardano ecosystem.
  • Reduced Costs: Native integration can potentially reduce transaction fees and other costs associated with oracle usage.
  • Enhanced Security: Building oracles from the ground up allows for greater control over security protocols and vulnerability mitigation.

These advantages can contribute to a more seamless and efficient experience for dApp developers and users within the Cardano ecosystem.

Challenges and Opportunities for Cardano Oracles

While Cardano's approach to oracles holds promise, there are also challenges to overcome:

  • Maturity: Cardano's oracle ecosystem is still relatively new compared to Chainlink's, and it needs to mature and scale.
  • Adoption: Widespread adoption by dApps and DeFi projects is crucial for the success of Cardano oracles.
  • Data Variety: Ensuring access to a wide variety of data feeds is essential to support diverse use cases.
  • Security Audits: Rigorous security audits are necessary to ensure the reliability and trustworthiness of Cardano oracles.

Despite these challenges, the opportunities are significant. Skip to main content Bitcoin Insider. MenuA successful oracle infrastructure can unlock the full potential of Cardano's smart contract capabilities and attract more developers and users to the platform.

The Piggy Project: A Cautionary Tale

While most projects mentioned are actively building oracles, it’s important to mention cautionary examples.The “Piggy” project, which surfaced around Q4 2025, claimed to build oracles on top of Cardano.However, it allegedly spent its pre-launch time attracting token stakes and selling tokens for profit, without delivering a functional product. The Piggy project came out around Q4 of 2025 and is supposed to build Oracles on top of Cardano. But only until 2025, this project did nothing but call to attract token stakes, sell tokens for profit.This serves as a reminder of the importance of due diligence and careful evaluation when considering new projects in the blockchain space.

Will Cardano Rely on Its Own Oracles or Integrate Chainlink?

This is a crucial question for the future of Cardano's oracle strategy. Cardano (ADA) is getting into data oracles ahead of the Goguen era that will add smart contract functionality, taking a different approach than Chainlink. The first oracles are being built inWhile Cardano is investing heavily in building its own oracle infrastructure, integrating with Chainlink could offer several benefits:

  • Access to Established Data Feeds: Chainlink has a vast network of existing data feeds that Cardano dApps could leverage immediately.
  • Proven Security and Reliability: Chainlink's DONs have a long track record of high availability and data accuracy.
  • Interoperability: Chainlink could facilitate interoperability between Cardano and other blockchains.

Ultimately, the decision will depend on the trade-offs between control, cost, and performance. Cardano is getting into data oracles ahead of the Goguen era that will add smart contract functionality, taking a different approach than Chainlink. The first oracles are being built in partnership with EMURGO, one of the companies in the Cardano ecosystem, and Ergo (ERG).It's possible that Cardano will pursue a hybrid approach, leveraging both its own native oracles and Chainlink to meet the diverse needs of its ecosystem.

Practical Applications of Cardano Oracles

Here are some practical examples of how Cardano oracles can be used in real-world applications:

  • DeFi: Providing accurate price feeds for decentralized exchanges (DEXs) and lending platforms.
  • Insurance: Triggering payouts based on weather data or other real-world events.
  • Supply Chain Management: Tracking the movement of goods and verifying their authenticity.
  • Gaming: Integrating real-world data into game mechanics and outcomes.
  • Identity Verification: Providing reliable data for KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance.

These are just a few examples of the many potential applications of oracles within the Cardano ecosystem.As the platform continues to evolve and attract more developers, we can expect to see even more innovative use cases emerge.

The Future of Oracles on Cardano: A Decentralized Vision

Cardano's distinct approach to oracles—with its emphasis on permissionless pools and transparent frameworks—positions it as a key player in the future of blockchain data integration. The advantage of the pool concept is the fact that every decentralized application or smart contract in the Cardano ecosystem can consume data from Oracle pools. Big Oracle pools can be created and data will be highly accurate as many Oracles will try to participate in providing data.By fostering a more open and decentralized oracle ecosystem, Cardano aims to empower its dApps and DeFi projects with reliable, secure, and cost-effective data feeds. Will Cardano rely on its oracles or integrate Chainlink's? Continue reading A new Cardano-based project is handling oracles a lotWhile challenges remain in terms of maturity and adoption, the Cardano community's commitment to scientific principles and community-driven development suggests a bright future for oracles on the platform.

FAQ: Cardano and Oracles

What are oracles in blockchain?

Oracles are third-party services that provide smart contracts with external data, which smart contracts cannot access on their own.They act as bridges connecting blockchains to real-world information.

Why are oracles important for Cardano?

Oracles enable Cardano's smart contracts to interact with real-world data, unlocking a wide range of applications in DeFi, supply chain management, insurance, and more.

How is Cardano different from Chainlink in handling oracles?

Cardano is focusing on permissionless, decentralized oracle pools with transparent frameworks, while Chainlink uses Decentralized Oracle Networks (DONs) with established node operators.

What is Orcfax and its role in Cardano's oracle ecosystem?

Orcfax is a Cardano-based project implementing a permissionless and decentralized Oracle pool model, allowing anyone to participate in the validator network.

Will Cardano rely on its own oracles or integrate Chainlink?

Cardano might pursue a hybrid approach, leveraging both native oracles and Chainlink to meet the diverse needs of its ecosystem.

Conclusion: Cardano's Oracle Innovation

Cardano's unique approach to oracles presents a compelling alternative to existing solutions like Chainlink.By prioritizing decentralization, transparency, and native integration, Cardano aims to create a more robust and efficient data infrastructure for its growing ecosystem.While the platform faces challenges in terms of maturity and adoption, its commitment to community-driven development and scientific principles suggests a promising future for oracles on Cardano. A new Cardano-based project is handling oracles a lot differently than ChainlinkKey takeaways include:

  • Cardano is developing a distinct oracle infrastructure separate from Chainlink.
  • Orcfax and other projects are pioneering permissionless oracle pools.
  • Native oracles can offer optimized performance and lower costs.
  • Cardano may eventually adopt a hybrid approach combining native and Chainlink oracles.

Keep an eye on the Cardano oracle landscape as it continues to evolve and potentially disrupt the blockchain data integration space. DIA offers a robust, decentralized, and transparent oracle framework that is widely utilized across various blockchain networks. Integrating DIA into Cardano would significantly boost its capacity to support real-world use cases by making trustless off-chain data available to smart contracts.As Cardano moves closer to full smart contract functionality, the development and adoption of reliable and decentralized oracles will be crucial to unlocking the platform's full potential.Consider exploring Cardano's ecosystem and follow the progress of these projects to stay informed about the future of oracles and decentralized data.

Mike Novogratz can be reached at [email protected].

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