In the dynamic world of decentralized finance (DeFi), oracles play a crucial role by connecting blockchain networks with external data sources. Without them, essential DeFi applications like lending markets and stablecoins couldn’t function properly. Chronicle is at the forefront of oracle innovation, addressing the industry’s key challenges with their unique approaches to security and transparency.

In this interview, we will dive into the importance of oracles in DeFi, explore Chronicle’s groundbreaking advancements, and learn about their recent collaborations. We’ll also discuss how Chronicle stays ahead of emerging security threats and their perspective on AI’s role in crypto. Join us for an enlightening conversation that uncovers the vital contributions of Chronicle to the DeFi space and what the future holds for their oracle solutions.

THE FINTECH MAG – What are oracles and why are they important in the DeFi space?

JENNIFER SENHAJI – Think of blockchains as islands of information. They can securely store and process data, but they’re isolated from the real world. This is where Oracles come in. They act like bridges, connecting blockchains to external data sources like traditional financial systems.

Without Oracles, DeFi would be severely limited. Imagine your phone with no internet access. Essential elements of DeFi, such as lending markets and stablecoins, wouldn’t function. Oracles, like cell towers for your phone, are the key to unlocking DeFi’s potential. They connect off-chain data to on-chain data.

Just as your phone needs a signal for apps to work, DeFi needs Oracles for smart contracts to execute and dapps to function. The industry is constantly innovating to create more secure and reliable ways to bring in external data. These advancements are crucial for building a thriving DeFi future, one that’s truly connected to the world around it and where the everyday user can interact with blockchain easily.

THE FINTECH MAG – How is Chronicle innovating on the industry standard for oracles?

JENNIFER SENHAJI – While oracles are essential for bringing real-world data into DeFi applications, their development hasn’t kept pace with the rapid advancements happening elsewhere in DeFi. Cutting corners on infrastructure sacrificed core DeFi principles, where speed was prioritized over security, and decentralization and transparency were disregarded.

Chronicle is emerging as a champion for secure and transparent DeFi by addressing the critical weaknesses plaguing current Oracle infrastructure. Unlike traditional Oracle networks, forced to choose between robust security and affordability, Chronicle’s Oracle architecture, Scribe, leverages Schnorr signatures to achieve infinitely scalable validator sets without sacrificing cost-effectiveness. This translates to unparalleled security for DeFi applications.

Furthermore, Chronicle prioritizes transparency by offering The Chronicle, an on-chain Oracle dashboard that allows anyone to view all transactions and data sources in real-time. This commitment to transparency stands in stark contrast to the opaque nature of most Oracles, fostering trust and aligning perfectly with the core principles of blockchain technology. By tackling these crucial issues, Chronicle paves the way for a future of DeFi brimming with trust, innovation, and accessibility. With robust security, developers can build financial applications that users can confidently rely on. Transparent data sources empower further DeFi exploration and trust, and reduced costs lower the barriers to entry, allowing a wider range of projects to participate in DeFi.

THE FINTECH MAG – Can you discuss any recent partnerships or collaborations that Chronicle has entered into, and how these relationships are advancing your goals within the DeFi space?

JENNIFER SENHAJI – Chronicle has recently integrated with BASE, a secure, low-cost, builder-friendly Ethereum L2 with an ambitious goal of bringing the next billion users on-chain. Empowered by the popular CEX, Coinbase, BASE already boasts a fast-growing DeFi ecosystem, and we’re delighted to be able to bring the Oracle network powering about 20% of DeFi on Ethereum, including MakerDAO, Spark, and more, to the chain

One of the key outcomes of this collaboration is the deployment of Chronicle’s Oracle data feeds, which include asset prices, yield rates, and more, on the BASE network. This integration unlocks the first fully verifiable, transparent, and gas-efficient option for DeFi users on BASE. The cornerstone of this offering is Scribe, Chronicle’s innovative Schnorr signature-based architecture, which provides significant improvements in efficiency, security, and transparency for Oracle users.

BASE’s focus on low gas fees also aligns perfectly with Chronicle’s mission to reduce the high gas costs typically associated with operating Oracle networks. Chronicle’s Scribe Oracle is designed to be significantly more cost-effective, offering up to six times lower update costs than Chainlink and 3.5 times lower than Pyth, both on L1 and L2. This cost efficiency is crucial in attracting more builders and developers to the BASE ecosystem, ultimately contributing to its goal of bringing the next billion users on-chain.

By joining forces with BASE, Chronicle is able to extend its reach and provide its advanced Oracle solutions to a rapidly growing DeFi ecosystem. This collaboration not only enhances the DeFi infrastructure on BASE but also positions Chronicle as a key player in the ongoing evolution of decentralized finance, supporting a more secure, resilient, and decentralized network for its users.

THE FINTECH MAG – With the rapid evolution of the DeFi landscape, how does Chronicle stay ahead of emerging security threats and ensure the robustness of its oracle solutions?

JENNIFER SENHAJI – In the ever-shifting realm of DeFi security, Chronicle stands out with a multi-layered approach. Unlike traditional Oracles forced to choose between affordability and robust security, Chronicle’s innovative design allows for an infinitely scalable validator network. This means we can constantly add trusted entities to verify data without sacrificing cost. Highly reputable entities already a part of this validator network include Etherscan, Infura, Gitcoin, Gnosis, and MakerDAO, amongst others.

In addition, Chronicle bypasses the vulnerability and centralization of bridges by building natively on chains, creating a more resilient system against attacks and outages. By combining these strategies with a proven track record, having been live since 2017, Chronicle demonstrates its commitment to staying ahead of security threats and ensuring the robustness of its Oracle solutions in the ever-evolving DeFi landscape.

THE FINTECH MAG – How does Chronicle approach AI’s influence on crypto?

JENNIFER SENHAJI – Chronicle carves a niche in the burgeoning world of DeFi by prioritizing transparency and security, acting as the silent partner for future AI integration. While we don’t directly develop AI for crypto applications, our robust Oracle network lays the groundwork for trust in autonomous AI systems within DeFi.

Chronicle’s Scribe technology strengthens the foundation of trust. Scribe ensures data integrity is maintained and that all transactions are verifiable. This becomes even more critical when AI is used in DeFi for tasks with high-stakes consequences, like automated risk management. Secure data feeds act as a vital safeguard, ensuring the AI operates on a trustworthy foundation and minimizes the risk of unintended consequences.

We are providing the essential building blocks for a future where AI can be utilized responsibly and securely within the DeFi ecosystem. By focusing on verifiable data and secure transactions, Chronicle paves the way for a future where AI can make sound decisions within the complex world of DeFi.

THE FINTECH MAG – What are some of the key challenges Chronicle faces in scaling its operations, and what strategies are being implemented to overcome these obstacles?

JENNIFER SENHAJI – Continued investment in R&D, particularly advancements in Scribe, is essential for Chronicle to stay competitive and offer the most efficient and secure oracle solutions in the ever-evolving space. We are also continuing to work with high-caliber partners in the space to broaden our audiences and drive adoption of our Oracle services, ultimately supporting their goal of scaling operations and advancing their presence in the DeFi space.

Moreover, Chronicle is a fast-growing company. Since the spin-out of MakerDAO, Chronicle Labs has had to tackle a large list of new challenges, typical of a technology start-up. From raising awareness for the new brand to increasing the size of the team to meet growing demand. Although the Oracle stack is the longest continuously operating Oracle network in the industry, the business and brand are quite new. We’re calling on our experienced team, many of whom were part of the early or founding cohort at MakerDAO, to guide us through.