Since the advent of the internet, humans have been creating a lot of digital data. Companies these days are forced to continually become more data-centric and conscious of its evolving use cases. Because, frankly, what’s the point of creating data if you can’t wield it as a resource?
Database management systems are such a big business that the company Oracle, which got its start in 1977, has now grown to become the second largest software company in the world.
The built-in transparency of blockchain technology means they are constantly overflowing with data. Anyone can easily see on-chain data such as big transactions, pricing info, transfers between wallets and more.
Just as companies were driven to adapt and connect to the internet, we’re seeing a massive opportunity for these same companies to now connect to the blockchain. This will give them the ability to execute secure transactions, utilize smart contracts to automate manual functions, and even expand their product offerings.
Since their invention, blockchain data has lived in silos and has not been very easily accessible. Many companies were simply blocked from doing business on the blockchain.
That is, until Chainlink. Chainlink is a decentralized oracle built on Ethereum that serves as a bridge between businesses, platforms and blockchains. Essentially, you can use Chainlink to pipe in real-world data—such as weather, economics, sports, energy statistics and more—which can then be executable on the blockchain or turned into blockchain-based applications. Chainlink also works the other way around, giving start-ups the ability to take blockchain data and turn them into real-world applications such as events, payments and gaming. (Chain.link)
While Chainlink provides very practical things, such as crypto pricing data feeds, its use cases are near endless. This week, Chainlink Labs (LINK), announced their plans to launch a multi-chain, interoperable protocol.
What does this mean? In short, the Cross-Chain Interoperability Protocol (CCIP) will allow blockchains to talk to each other no matter what platform they are developed on. This ability would span across hundreds of blockchain networks, creating a universal bridge of maximum interoperability.
Chainlink Labs founder Sergey Nazarov revealed that the CCIP had “billions of dollars soft-committed from some of our biggest users,” and plans to launch in just a few months. “Just the same way that different applications on Ethereum use each other, now, different applications across different chains can use each other,” Nazarov is quoted as saying. (Decrypt)
This is a massive step in building what is often referred to as Web 3.0. Which can be thought of as the next wave of the internet, where there is an underlying value layer powered by the blockchain. With personal data also being a hot topic, it’s tools like these that will give users the ability to manage and monetize their own data.
Chainlink, launched in late 2018, comes with a well-earned reputation. It performed better than Bitcoin in 2019, showing close to 500% return on investment. Chainlink is particularly popular in DeFi, where it’s reported that over 300 projects utilize its oracle technology.
Avalanche (AVAX), a smart contract platform for decentralized applications (dApps), recently went live with Chainlink’s price feeds on their mainnet, “giving ecosystem developers seamless access to the most secure and highest quality price reference data across a variety of asset classes.” (Medium) The hope is that this will boost Avalanche’s DeFi network and adoption, giving developers the ability to build smart contracts connected to a wide-variety of data streams.
It’s reported that $17 billion of institutional capital was invested in crypto just in 2021. (Blockworks) What many fail to realize is that blockchains and smart contracts can make doing business far more efficient, safe, secure and even user friendly. With thousands of companies migrating to the blockchain in the midst of Chainlink’s hyper-accessible future, one thing seems inevitable—they will have to consult the oracle.
Top market movers as of August 13, 2021
- Cardano (ADA) +48%
- Qtum (QTum) +44%
- Chiliz (CHZ) +42%
- Dogecoin (DOGE) +40%
Cointelegraph > "OpenSea trading volume explodes 76,240% YTD amid NFT boom"
All investments involve risk and the past performance of a digital asset or other financial product does not guarantee future results or returns. Cryptocurrencies are highly speculative in nature, involve a high degree of risk and can rapidly and significantly decrease in value. It is reasonably possible for the value of Cryptocurrencies to decrease to zero or near zero. While diversification may help spread risk, it does not assure a profit or protect against loss. Investors should consider their investment objectives and risks carefully before investing. Previous gains may not be representative of the experience of other customers and are not guarantees of future performance or success.