Chainlink, the decentralized Oracle network, is no longer limited to its original and most famous price feed oracles and has become an important infrastructure layer for the emerging Web3.
Chainlink’s price feeds are now the go-to solution for DeFi projects to obtain accurate off-chain data, however, the project has been working on enhancing and releasing new oracle services for blockchain markets requirements.
One of the most important milestones in Chainlink’s growth is the release of the new product Chainlink Verifiable Random Function (VRF), which ensures blockchain randomness. It has proved most useful where there are likely to be disputes over the elements of chance in games involving cryptocurrency or blockchain-based games or statics involving NFTs.
Major gaming and NFT projects have also integrated Chainlink VRF layer and the growing adoption has reinforced Chainlink’s standing as a leading infrastructure solution in these burgeoning industries. There has also been use and expansion of Chainlink with regards to cross-chain interaction as another area of use.
Its Cross-Chain Interoperability Protocol is the project’s current attempt at devising an open-source, cross-chain interface standard. The development is quite significant given the growing number of blockchain networks in the ecosystem as people will require asset and data mobility across multiple chains.
Therefore, the activities in this area by Chainlink could be instrumental in bringing the much needed closer interconnectivity of block chain. It also continues to work on the efforts of how actual data can be brought onto the blockchain platform through the External Adapters tool.
This makes it possible to incorporate other off-chain data sources together with APIs, which puts in place new ways through which blockchain applications can interact with real-world events and systems. Examples of use cases can be parametric insurance product that provide payments according to the collected information about the weather or supply chain management product that tracks tangible assets on the blockchain.
Over the years, more services have been added to the type of services provided by Chainlink hence the increased utility and demand of the LINK token. LINK is not only paid for oracle services but acts also as security to compensate node operators for their services in the Chainlink network.
This has greatly boosted the usage of LINK and has in particular performed well in the cryptocurrency market. For the future, Chainlink is gearing up to become an essential player in the emergent hybrid smart contracts which are essentially a combination of individual code running on a blockchain and detailed data as well as computation that occur outside of the blockchain realm.
This could also open up smart contracts into a whole new level of possibilities as smart contracts then become capable of interfacing with real world systems. As the blockchain industry progresses in the future, Chainlink’s growing lineup of advanced oracle solutions and its dedication to connecting on-chain and off-chain ecosystems make it well-equipped to help define the progression of decentralized technology.
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