Research Summary
The report discusses Chronicle Protocol, an oracle network that secures over $5 billion and accounts for 16.8% of total value secured among all oracle networks. The protocol, which evolved from the Oracle Core Unit at MakerDAO, aims to provide transparency and accessibility in how oracle networks serve blockchains. It uses a Schnorr multi-signature aggregation scheme for data verification and has added features to its oracle dashboard that enable users to verify the data they observe in-browser. The report also provides a competitive analysis of Chronicle Protocol against other oracle networks like Chainlink.
Key Takeaways
Chronicle Protocol’s Unique Features
- Securing Significant Value: Chronicle Protocol secures over $5 billion, accounting for 16.8% of total value secured among all oracle networks.
- Use of Schnorr Multi-Signature Aggregation Scheme: This scheme enables multiple feeds to be verified at a constant rate, distinguishing Chronicle from other oracles.
- In-Browser Data Verification: Chronicle has added features to its oracle dashboard that enable users to verify the data they observe in-browser, enhancing transparency and trust.
Chronicle Protocol’s Evolution
- Origins at MakerDAO: Chronicle Protocol evolved from the Oracle Core Unit at MakerDAO, which invented Ethereum’s first onchain oracle in 2017.
- Expansion Beyond MakerDAO: Chronicle is expanding its oracle network outside of the MakerDAO ecosystem to restore crypto’s ethos to oracle infrastructure.
- Addressing Transparency Issues: Chronicle Protocol addresses the lack of transparency in crypto infrastructure with end-to-end verifiability.
Chronicle Protocol’s Technology
- Scribe: Chronicle’s oracle smart contract system, Scribe, uses a custom oracle consensus algorithm based on Schnorr multi-signature aggregation cryptography, leading to substantial data compression and cost reduction.
- Optimistic Scribe: To achieve scalability on Ethereum, Chronicle developed Optimistic Scribe, which removes the need for the Scribe smart contract to verify the Schnorr signature for every oracle update.
- Key Technical Terms: The report provides definitions for key technical terms used in describing the Chronicle Protocol, such as Oracle, Feed, Scribe, and Schnorr Signature.
Competitive Analysis
- Comparison with Chainlink: While Chainlink is the leading oracle provider in terms of total value and the number of protocols secured, Chronicle existed before Chainlink and was the first oracle network to create and use the terms “oracle” and “feed.”
- Total Value Secured: Chronicle Protocol used to account for 100% of all oracle activity as a private oracle unit for MakerDAO. Over the years, Chainlink has grown its market share, consistently accounting for about half of all DeFi-based TVS.
- Verifiability: Chronicle is the first oracle with true transparency that enables any type of user to verify the value and provenance of any datapoint the protocol reports.
Actionable Insights
- Investigate the Potential of Chronicle Protocol: Given Chronicle’s long-standing position as the earliest onchain oracle protocol and novel approach to networking and oracle updates, resulting in low fees, protocols may consider onboarding Chronicle oracles in the future.
- Consider the Importance of Transparency: Chronicle’s focus on transparency and verifiability could set a new standard for oracle networks, potentially influencing user trust and adoption.
- Monitor Chronicle’s Product Expansion: Chronicle plans on rolling out additional products, which could increase its competitiveness against dominant market players like Chainlink.
