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Why Decentralized Oracles And Decentralized Storage Go Hand-In-Hand

Last week’s Filecoin Orbit virtual conference celebrated the first anniversary of Filecoin’s open-source, cloud-based decentralized storage network’s mainnet launch. The event brought together over 80 blockchain industry leaders to talk about how they’re building Web3, including Chainlink Co-founder Sergey Nazarov, who shared his vision of The Truth Machine during a fireside chat with Filecoin Founder Juan Benet. 

In a panel called Making Web3 Permanent: How Filecoin Integrates Across Chains moderated by Protocol Labs’ HQ Han, Chainlink Labs’ solutions architect Roger Brogan joined Aurora’s Alex Shevchenko, Hedera’s Brady Gentile, and Polygon’s Ishan Negi to discuss why a permanent decentralized storage layer like Filecoin is vital to the Web3 tech stack and how it interacts with other critical building blocks like Chainlink’s oracles. 

When asked why decentralized oracles and decentralized storage go hand-in-hand, Brogan explained how Chainlink’s secure middleware connects different blockchains as well as different legacy systems, enabling bidirectional data flow. Because blockchains aren’t designed to store large amounts of data like photos and videos, Chainlink allows data to flow from any blockchain through an oracle network to Filecoin’s decentralized storage network – and vice versa.  

Brogan said this process opens up new use cases for archiving and monetizing large amounts of data, such as automated storage that captures data like historical asset prices and DEX bonding curves at regular intervals and stores it in Filecoin. He said this creates additional opportunities for data DAOs to curate new datasets and perform additional analysis to acquire key insights.

Decentralized systems powered by oracles give users complete control of their digital assets – and decentralized storage ensures permanence for data-rich items like NFTs. In Brogan’s view of the future’s multichain world, Chainlink will connect different blockchains with unique specialization so Web3 applications can cherry-pick features that provide the best user experience.

“We’re really just in the infancy of Web3, but I think it’s also really clear to see that the full impact of this is going to be transformative at a global scale,” he said. “I think that as the user interface becomes better and better, then we’re going to get wider adoption of all of these technologies.”

Watch the full panel discussion at Filecoin Orbit.

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