Everything You Need To Know About: Chainlink VRF

Everything You Need To Know About: Chainlink VRF

Blockchain News
August 10, 2022 by Diana Ambolis
Over the past several years, blockchain technology has given rise to numerous uses, with cryptocurrencies being the most well-known. Additionally, it has aided in developing multiple decentralized, safe, and open marketplaces in the digital economy. This technology has been well complemented by the innovative contract feature made famous by Ethereum, which offers significantly more confidence
Unlocking the Potential of Blockchain Technology: The Crucial Step

Over the past several years, blockchain technology has given rise to numerous uses, with cryptocurrencies being the most well-known. Additionally, it has aided in developing multiple decentralized, safe, and open marketplaces in the digital economy.

This technology has been well complemented by the innovative contract feature made famous by Ethereum, which offers significantly more confidence because all transactions are immutably recorded on the blockchain. Decentralized apps (DApps) built on blockchains like Ethereum are upending established industries like retail banking and introducing previously unimaginable use cases.

Using oracles to increase the functionality of smart contracts

Blockchain oracle technology, which strengthens smart contracts by connecting them with real-world data, events, and transactions, comes into play when DApps on the Ethereum blockchain need to interact with the outside or off-chain world, and they must incorporate the incoming data to work. How many practical applications blockchain technologies can enable is now being increased by a wide range of third-party services, including inbound, outbound, software, and hardware oracles.

End-to-end decentralization is required to protect the whole blockchain ecosystem where consensus-based oracle networks like the Chainlink protocol operate. In addition, these oracles improve the efficiency, usability, and interoperability of smart contracts to provide more confidence and transparency than on-chain systems.

Expanding the use of hybrid intelligent contracts, which combine the specific characteristics of blockchains with the distinctive capabilities of off-chain systems like oracle networks to achieve significantly more reach and power than on-chain systems alone, will bring about this transition.

Chainlink VRF: What is it?

A tamper-proof and verified source of random numbers is necessary for many DApps in the blockchain gaming and nonfungible token (NFT) arena to enable sophisticated capabilities like carrying out an airdrop, managing a lottery, or creating chance-based games.

Even the export of blockchain data to systems outside the blockchain ecosystem can be made more accessible. A decentralized oracle network (DON) is used by Chainlink’s Verifiable Random (VRF) function to improve existing blockchains by supplying validated off-chain data. By using a group of Chainlink nodes that convey information to intelligent contracts while upholding a classical-consensus mechanism through a committee of these nodes, Chainlink VRF offers cryptographically secured randomization.

Chainlink VRF’s random number generation (RNG) for intelligent contracts enables developers to create improved user experiences in their blockchain-based applications. Furthermore, because every oracle in the DON has a corresponding private and public key pair, where the private key is maintained off-chain while the public key is published on-chain, the tamper-proof randomness provided by Chainlink VRF cannot be altered by any node operator, and the user, or even a malicious entity.

How is Chainlink VRF put to use?

In just four easy steps, a smart contract can use Chainlink VRF to generate a secure and verified random number:

For applications with the ability to do generalized computing, Chainlink VRF enables far more secure and decentralized storage of individual keys since it employs two keys to produce a random yet unpredictable value that can be confirmed by proof of correctness. By combining on-chain block data as an input with on-chain cryptographic verification, Chainlink VRF’s on-chain cryptographic verification overcomes the shortcomings of insecure RNG solutions that rely on off-chain computing and provides unbiased and tamper-proof results that are safe even from compromised oracles in its network.

Because of the superior capabilities offered by Chainlink’s on-chain RNG solution, use cases for Chainlink VRF in the decentralized finance (DeFi) space include dependable, intelligent contract applications like PoolTogether, which enables moderately gamified personal savings, and Moonbeam, which gives Polkadot (DOT) developers real-time price data.

Additionally, it is bringing entropy in on-chain gaming by offering verified randomized solutions, as in the instance of Axie Infinity, and aiding in the fair distribution of nonfungible tokens (NFTs), as in the case of Polychain Monsters (AXS). Chainlink VRF, created as a component of the Chainlink 2.0 ecosystem, gives smart contracts the infrastructure and processing power required to perform sophisticated functions. It also facilitates a general-purpose framework that developers can fully trust, along with other DONs.

Also, read – Chainlink oracles to power NFT-based blockchain games on Polyient.

Chainlink VRF v2: What is it?

In keeping with its goal of continuously improving the functionality offered by its DONs, Chainlink has unveiled Chainlink VRF v2, which includes several updates that affect how developers can pay for and request randomization for their smart contracts.

This includes the capability to produce numerous random outputs in a single on-chain transaction, cutting down on transaction costs or gas fees while simultaneously speeding up response times. Additionally, it permits funding requests for verifiable randomization from up to 100 intelligent contract addresses using a single LINK subscription balance account, which the subscription owner or developer would control.

In addition, Chainlink VRF v2 adds a Subscription Manager application that enables developers to pre-fund numerous randomization requests using a single LINK token balance, eliminating the need to transfer tokens for each request and substantially lowering the applicable chainlink VRF fees.

It enables more complicated logic in the callback request function and allows developers to change the callback gas limit when their smart contract apps receive validated randomness. The gas restrictions differ from those established in Chainlink VRF, although they are still explicitly stated on the VRF Contract addresses page and depend on the underlying blockchain.

Since developers can now specify how many block confirmations are required before a random number is generated and published onto the blockchain, Chainlink VRF v2 has the added benefit of allowing for more flexibility.

Developers can choose the ideal number of block passes before randomization is created with a range of three to 200 blocks, safeguarding their applications against block reorganizations while offering a much shorter latency time from request to final response. Developers can now access highly scalable, gas-efficient, and programmable on-chain randomness with Chainlink VRF v2, which can open up even more functions for NFT and gaming DApps.

The VRF application from Chainlink is quickly becoming the standard choice for most developers creating DApps on the Ethereum network due to the company’s continuous delivery of updates. Chainlink VRF is making its promise to make it easier to introduce blockchain-based applications that can be proved to be secure by empowering programmers to make more useful applications that can dependably interface with real-world data.

Chainlink VRF represents a significant advancement in blockchain technology as it enables developers to expand the boundaries of the current Metaverse thanks to blockchains’ capacity to interface with external data streams in a trustless manner.