Chainlink Profile picture
Mar 22 15 tweets 5 min read
1/ Cryptographic truth is a new form of trust-minimized computing & record-keeping with superior properties to the methods used today.

This 15-part 🧵 explores how blockchains generate cryptographic truth and how #Chainlink vastly extends its application into the real world.
2/ Cryptographic truth is the combination of cryptography and decentralized consensus to deterministically compute applications and generate a “golden record” for all activity between users.

But how exactly are cryptography and decentralized consensus applied in blockchains?
3/ Cryptography is the science of securely communicating in the presence of adversarial behavior. Cryptography is used primarily to

-keep data confidential
-authenticate data origin
-validate data integrity
-establish non-repudiation in communication

4/ Cryptography has three general classes:

-Hash functions—turning data into a unique fixed-length string, akin to a fingerprint

-Symmetric cryptography—encrypted communication w/ a shared secret key

-Asymmetric cryptography—encrypted communication via public/private key pairs
5/ Blockchains use two primary forms of cryptography: hashing & asymmetric encryption. From these come the ability to generate/verify digital signatures, validate blocks, & store data in the ledger efficiently.

Let's look at each of these cryptographic functions in blockchains.
6/ Transactions: Blockchains use digital signatures to ensure that only the private key holder can make a transaction on the corresponding public address.

Signatures are generated by users via their private keys and miners/validators verify signatures via users' public keys.
7/ Block Production: Miners/validators must generate a valid block hash to propose their block for inclusion in the ledger.

The block must include the hash of the previous block, which serves to cryptographically link blocks together in a chronological chain (i.e. block + chain)
8/ Data Storage: Blockchains use hash functions to encode ledger data in data structures called Merkle trees.

Merkle trees are useful because they take up less disk space for full nodes and facilitate the efficient verification of data integrity & data inclusion in the ledger.
9/ Beyond cryptography, blockchains use mechanism design to incentivize an honest majority consensus amongst a decentralized network. This involves

-explicit rewards/penalties applied directly from the protocol
-implicit rewards/penalties derived indirectly from the protocol
10/ Explicit incentives/penalties can come in the form of

-native block rewards and transaction fees for producing valid blocks
-the confiscation of validators’ staked cryptocurrency for poor performance or malicious actions
11/ Implicit incentives/penalties include

-miners wasting computation on invalid blocks
-miners/validators earning crypto tied to a chain's success
-service providers earning more revenue the more secure blockchains become
-full nodes holding miners/validators accountable
12/ Explicit and implicit rewards/penalties combined with separation of powers between block producers and full nodes results in blockchains achieving their desired properties of accuracy, immutability, availability, and censorship resistance—all in a trust-minimized manner.
Chainlink takes the cryptographic truth generated by blockchains & extends it to off-chain computing. This is done by enabling users to definitively code how oracle networks should

-form consensus about an off-chain event
-prove the integrity of their off-chain computation
14/ This notion of "definitive truth" gives users the flexibility to create a mutually agreed-upon method of how truth is generated off-chain by oracles which all parties believe is deterministic enough to authoritatively interact with their specific contract.
15/ To get a deeper understanding of cryptographic truth and definitive truth, as well as key blockchain primitives such as Sybil resistance, distributed consensus, and game theory, check out the full blog post below 👇 blog.chain.link/what-is-crypto…

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Chainlink

Chainlink Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @chainlink

Mar 22
#Chainlink trust-minimized services are integral to innovative #DeFi, gaming, and #NFT projects across the #multichain ecosystem.

Explore today’s integrations across #BNBChain and #Polygon🧵👇
Read 5 tweets
Mar 1
1/ Looking to level up your #DeFi knowledge?

Explore these #Chainlink deep dives to learn the core principles of DeFi and how it's reshaping the financial tech stack through transparent decentralized applications🧵👇
2/ Learn what decentralized finance is and how it presents a new, permissionless model for financial interaction. chain.link/education/defi
3/ Explore the uses of yield farming (or liquidity mining) and how it can help bootstrap new #DeFi protocols by rewarding users for provisioning liquidity or providing other value-adding services. blog.chain.link/defi-yield-far…
Read 5 tweets
Mar 1
#Chainlink continues to unlock smart contract innovation and advance the growth of #Web3 by providing #blockchain dApps secure access to off-chain data and computation.

Check out today's integrations👇 Image
Operating an official #Chainlink node with leading Middle Eastern telecom @STC_BHR
Read 4 tweets
Feb 12
#Chainlink's wide range of secure off-chain data and computation services continue to unlock utility for #dApps across the #multichain ecosystem.

Today, integrations across #Avalanche, #BSC, #Ethereum, #Fantom, and #Polygon 🧵👇
Providing verifiable randomness to BLOK party games with VR-based #metaverse platform @bloktopia on @0xPolygon
Calculating gas fees and real-time conversions with @EverRise on @avalancheavax, @BinanceChain, Ethereum, Polygon, and @FantomFDN
Read 4 tweets
Feb 11
From helping to secure leading #DeFi protocols to providing key infrastructure for the developing #metaverse, #Chainlink is at the forefront of smart contract innovation.

In NYC, Denver, or Bangkok? Don't miss these upcoming in-person events to expand your knowledge of #Web3.
For those of you in #NYC, @MBRichardson87 from @Bancor and @PaulErlanger from @dydxprotocol will explore the tools driving the growth of the #DeFi space.

Hear their thoughts at @betaworkstudios on 2/15.
eventbrite.com/e/evolving-def…
If you're in #Denver, experts from @AaveAave, @0xPolygonHermez, and @RarePizzas will discuss how #NFTs are reshaping digital ownership and provide the foundation for an interoperable #metaverse.

Don't miss this #ETHDenver satellite event on 2/16.
eventbrite.com/e/nfts-and-the…
Read 5 tweets
Feb 11
1/ Version v1.1 of the #Chainlink core node software has been released! 🏗️

This update includes a number of key reliability, security, and efficiency improvements for Chainlink node operators.

🧵 In this thread, we'll explore some key new features.
2/ Multi-Chain Support:

As a beta feature, Chainlink nodes can now connect to multiple EVM chains simultaneously, enabling the creation of cross-chain jobs.

This is part of the groundwork required for the Cross-Chain Interoperability Protocol (#CCIP).
3/ EIP-1559 mode:

Support has been added for EIP-1559-style transactions, which can help facilitate faster confirmations and reduce gas costs during & after gas price spikes.

This allows node response times to become more consistent during network congestion.
Read 9 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(