Cryptonomics: What is the Chainlink Verifiable Random Function (VRF) for DeFi

The secure solution allows smart contracts to create random numbers for numerous use cases on a blockchain.

By
Utulu Hope
on
October 6, 2021
Category:
Cryptonomics

Number One Verifiable Source of Randomness?

It isn't easy to create randomness on blockchains. The reason for this difficulty is that each node must arrive at the same conclusion to form a consensus. Chainlink created a Verifiable Random Function (VRF) to solve this problem by allowing smart contracts to generate random numbers. 

Smart contract developers across blockchain use Chainlink’s VRF to generate tamper-proof random numbers. In essence, Chainlink VRF is a secure Random Number Generator (RNG) employed by developers to carry out specific functions in the Decentralized Finance (DeFi) industry. 

Chainlink’s VRF has brought transparency to the entire cryptosphere. Since its inception in October 2020, numerous protocols across Ethereum, Polygon, and Binance Smart Chain (BSC) have integrated the secure randomness solution. The solution is a fair and verifiable source of randomness designed for smart contracts. 

Source

Secure And Efficient 

The solution provided by the VRF is excellent because it ensures that smart contracts access randomness without compromising on security. Chainlink VRF generates a random number upon every request for randomness with cryptographic proof of how the number was generated. 

The process is done to prevent anything or anyone from manipulating the results—it is verifiable, transparent, and inimitable. So far, the VRF has been unbreakable.

“The proof is published and verified on-chain before any consuming applications can use it. This process ensures that the results cannot be tampered with nor manipulated by anyone, including oracle operators, miners, users, and even smart contract developers,” according to Chainlink’s document
Source

As stated, many projects across the DeFi industry have utilized secure solutions for different purposes. 

  • ApeSwap utilizes Chainlink’s VRF to distribute $BANANA tokens to random Non-fungible token (NFA) holders over the Summer. 
  • PancakeSwap Decentralized Exchange (DEX) also uses Chainlink VRF to bring transparency to its lottery system. 
  • Moonpot incorporates the VRF for number generation on its win-win lotteries.

Chainlink VRF has brought fairness to lotteries, reward distribution, and many other random assignments of duties. Recently, the secure and efficient solution recorded a considerable milestone in the DeFi industry. 

According to a BSC News publication from September 29, Chainlink VRF serviced one million requests in 35 use cases across BSC, Polygon, and Ethereum. 

The solution is widely used, ensuring that several top projects in the DeFi space efficiently carry out numerous use cases. 

For more information about Chainlink:
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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer. He hodls mostly in Ethereum, BNB, and, Avax.

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