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Why Chainlink Labs Is Collabing With Palm Network NFT Space’s Development

NFT Image by: Fakurian Design - Unsplash
Palm Network, an NFT ecosystem built on Ethereum, a collaboration with Chainlink Labs to refine the way NFTs are issued across blockchains. Their ultimate objective is to design “a multi-chain NFT abstraction layer” for enterprises to “track, monitor and manage” non-fungible tokens. Palm Network focuses on the development of a cultural space in the NFT ecosystem while worrying about scalability and sustainability. They claim its ecosystem is “99% more energy-efficient than proof of work systems”, providing fast transactions and requiring low gas fees. They aim for a flexible, easy to use, design and say to have “a roadmap to decentralize over time”, transitioning to an Ethereum Layer 2. Its Palm NFT Studio is described as “a collective of technology, entertainment, cryptoart and art industry leaders”. They offer customized services for artists and rights holders “looking to establish NFT marketplaces and next-generation work” on Palm the Network. FanDome 2021 event NFT collection is one of their launched initial projects. In their public announcement, they explained Chainlink Labs is the development team that will be supporting Palm NFT Studio to improve and develop the Palm Network. Palm Co-Founder and Palm NFT Studio CEO Dan Heyman stated:
We’re thrilled to collaborate with the Chainlink Labs team to help grow the Palm ecosystem and build the resources required to create the most fully-featured platform for leading enterprises to join the NFT ecosystem, (…) The Chainlink Network’s vast array of decentralized services will also play a key role in the creation of more advanced dynamic NFTs, as well as enabling enterprises to easily manage NFTs across any blockchain network through CCIP.

A Growing Demand For NFT Services

The growth of non-fungible tokens’ popularity is impossible to ignore. DappRadar earlier that the NFT space had a trading volume of $10.67 billion during October 2021, a 704% increase from the second quarter and a 38,060% increase year-over-year. This remarkable performance brings a higher demand for non-fungible tokens services. Palm claims diverse companies are interested in introducing the NFT technology into their “loyalty programs and core digital product offerings”, and explained that a “seamless NFT abstraction layer will empower enterprises to securely participate in this burgeoning digital economy and unlock new value streams.”

Related Reading | NFTs And Play-To-Earn Are The Future Of Gaming, States EA CEO

Chainlink Labs focuses on building a decentralized oracle network, supports smart contracts by providing “tamper-proof inputs, outputs, and computations”. The oracle network acts as a bridge and connects blockchains and real-world data. The announcement described their collaboration as a way to validate the viability of NFTs in the long run and help with the simplification of the creation process and the wider adoption that Palm network aims for. They expect this to happen through the integration of “several Chainlink oracle services”, such as Chainlink Price Feeds for exchange rates, their VRF for a verifiable random number generator, and CCIP for cross-chain interoperability, the statement reads. The ultimate goal is to offer a “simple, secure, and customizable framework” that helps to mint non-fungible tokens through any CCIP-supported blockchain network using “a single interface”. They also want to provide creators with a “high-quality, tamper-proof source of market data that can be used as exchange rates for crypto-to-crypto or crypto-to-fiat transactions during drops and marketplace activity”. Overall, they intend to offer new ways to create NFTs, as well as a way to fairly distribute NFTs through a “verifiably tamper-proof source of randomness”, and create an abstraction layer for better management of NFTs across blockchain networks, reducing friction and becoming more amicable for more enterprises to join the ecosystem. David Post, Managing Director of Corporate Development and Strategy at Chainlink Labs commented:
Palm NFT Studios is crafting a strong ecosystem of artists and enterprises through their scalable Ethereum-based NFT platform. We’re thrilled to provide support in order to help them achieve their goals in bringing NFTs to the masses, (…) The creation of an abstraction layer for enterprises to mint NFT assets across blockchain networks is also a unique and powerful use case of Chainlink oracles, vastly reducing the time it takes to issue and manage NFTs across any supported blockchain.

Related Reading | Chainlink Strengthens Polkadot Through RioDeFi Oracle Integration

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