Over the last three years, Chainlink, the leading decentralized oracle provider, has been integrated into more than 300 projects. Every integration bolstered the price of Chainlink’s native token – LINK. Effectively, LINK has pumped by over 500% since January 2020. It seems Chainlink’s ecosystem growth never slows. That’s because the team has impressive plans for 2021 that will help maximize blockchain innovation. Additionally, it plans to introduce oracles to non-blockchain entities for blockchain adoption.
In 2021, the team plans to work on the security, reliability, and scalability of the Oracle network. This will help accommodate the value of tens of billions of dollars in the Chainlink oracle network. Along with that, it will provide developers a verified data-rich environment where they can build exciting blockchain solutions.
Supreme Data Authenticity and Privacy
In the year 2020, Chainlink acquired DECO from Cornell University. Developed by university researchers, DECO is an improvement in the utilization of HTTPS/TLS for data transmission across the internet. Currently, Chainlink is working on fully integrating DECO’s unique data security capabilities. This will greatly increase the availability of private and premium data to the developers.
Diversification of Risk in DeFi
In 2020, BitGo, the company operating wBTC (Wrapped Bitcoin), used Chainlink to audit its Bitcoin reserves. According to Chainlink co-founder Sergey Nazarov, 2021 will see Chainlink helping more projects with verifiable proof of reserves. And this will help diversify the risk in DeFi space as it will prove that there is collateral that is actually backed by valuable assets.
Furthermore, Chainlink launched its verifiable randomness mechanism in 2020. It is now working with insurance providers to utilize verifiable randomness to build innovative products. Nazarov explains that, using this mechanism, an insurance product can be sold into the DeFi market. Basically, the user can turn the revenue from the insurance product into a smart contract. This smart contract can then be sold as collateral into the DeFi market.
With this kind of support, the DeFi fraternity can explore different types of collaterals and the risk can be diversified. Additionally, the team is also working on utilizing oracles to prevent the incidents of flash loan attacks in the DeFi space.
Nazarov states that as the DeFi risk diversifies, the market will grow, and this will also create a market for NFTs.
Non-Blockchain Entities Want Chainlink Oracles
According to Nazarov, many traditional web companies have recently shown interest in utilizing the Chainlink oracles. Furthermore, these non-blockchain entities want to use Chainlink to prove things to them. Interestingly, this could be a new dimension of introducing these entities to the benefits offered by blockchain.
Join us on Telegram to receive free trading signals.
For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.