As one of the most pioneering technology projects of 2020 by the World Economic Forum, Chainlink now aims to bring a wealth of verified data to the blockchain technology and beyond the blockchain sphere.
Chainlink, the leading decentralized oracle provider has been integrated into more than 300 projects since three years ago. Every integration bolstered the value of Chainlink’s native token, LINK which has pumped by over 500% since January 2020. It seems Chainlink’s ecosystem growth never lasts. That’s because the team has great plans for 2021 that will help maximize blockchain innovation. Moreover, Chainlink aims to introduce oracles to non-blockchain entities for blockchain technology adoption.
In 2021 the team is going 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 offer developers a verified-data-rich environment where they can build exciting solutions based on blockchain technology.
Supreme data authenticity and privacy
In 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. Chainlink is now working on fully integrating DECO’s unique data security capabilities. This will notably increase the availability of private and premium data to the developers.
Diversification of risk in DeFi
In 2020, BitGo, the firm operating wBTC (Wrapped Bitcoin) used Chainlink to audit its bitcoin reserves. According to Nazarov, in 2021 we will see Chainlink helping more projects with verifiable proof of reserves. And this will help diversify the risk in DeFi sphere as it will prove that there is collateral that is actually backed by valuable assets.
Additionally, Chainlink launched its verifiable randomness mechanism in 2020. It is now working with insurance providers to utilize verifiable randomness to create innovative products. Nazarov explains that using this method, 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 be sold as collateral into the DeFi market.
With this kind of support, DeFi fraternity can explore various types of collaterals and the risk can be diversified. Moreover, the team is also working on utilizing oracles to prevent the incidents of flash loan attacks in DeFi.
According to Nazarov as the DeFi risk diversifies, the market will grow and this will also make a market for NFTs.
Non-blockchain entities want Chainlink Oracles
According to Nazarov many traditional web firms have recently shown their interest in utilizing the Chainlink oracles. Moreover, these non-blockchain entities aim to use Chainlink to prove things to them. This could be a new dimension of introducing these entities to the blockchain benefits.
In the last 24 hours, LINK is up by over 14.7%. At the time of writing, LINK is trading close to $12.5.