Chainlink Automation Launches on Base: Unpacking Its Impact

Chainlink has been on a partnership spree of late, securing relationships with several big players inside (Circle) and outside the crypto industry. One of their most significant collaborations has been with US exchange and public company Coinbase’s L2 scaling solution, Base. The duo teamed up in September last year, spurring a 10% price run in the days following. At first, the partnership intended to provide Base users with improved cross-chain capabilities. However, the scope of the alliance has expanded, with Chainlink Automation launching on the Base network yesterday.

What Is Chainlink Automation?

Chainlink Automation is described as a standardised way for dApp developers to execute smart contracts within their platforms. The key here is the Chainlink protocol’s efficiency – it is extremely low-cost and scalable, while maintaining a high level of security and decentralisation. Therefore, it is quite appealing to app developers creating large, complex platforms; think a decentralised exchange or liquidity farming protocol.

Thanks to the partnership, developers on Base will now be able to offload hefty automation tasks to the Chainlink network, which will result in a close to 90% reduction in gas costs. This expands the potential for dApps built on Base, as the computational capacity for complex smart contracts – those with lots of conditions and triggers – has improved.

Johann Eid, Chief Business Officer at Chainlink Labs, spoke to how this partnership will play a role in the evolution of the Web3 ecosystem:

The news wasn’t enough to yank Chainlink (LINK) out of the broader market’s spiral, with the token down nearly 10% over the past week.