Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Chainlink, A Sleeping Giant

CryptocurrencyMay 10, 2021 05:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Chainlink, A Sleeping Giant

The addition of smart contracts onto a blockchain platform was a technological breakthrough, creating new integration possibilities in real-world uses. However, smart contracts are limited to their functionality when retrieving or sending data. They serve only as a store of data without actively distributing information to third parties. Chainlink originated as a middle layer of blockchain, serving to increase synergy between smart contracts and external data sources such as APIs or separate blockchains.

Developed as a “substrate” to blockchain technology, Chainlink added value by enabling blockchain to develop outside its P2P functions. That value has been reflected in the network’s acceptance and price action. Chainlink has reached a new all-time high of over $52 after being fairly silent in the current bull market. The release of Chainlink 2.0 shifted the focus back toward Chainlink as its hybrid smart contract proposition could enable increased adherence to the blockchain by off-chain services.

A Paramount Proposal To Blockchain Technology

Chainlink’s oracle network supported blockchain’s evolution through its “middleware” integration, which in 2020 helped magnify DeFi’s utility in a previously centralized market. Chainlink has become an integral part of many DeFi projects, serving over 300 projects, including and NEXO.

Oracle (NYSE:ORCL) networks have been normalized in the blockchain space, and institutions are increasing their investment in Chainlink. Grayscale’s trust holds over $8.2 million worth of LINK tokens, and their stacking habits are mimicked by token holders as well.

Behind the scenes, Chainlink is actively contributing to developing services that grow the blockchain network, facilitating a blockchain agnostic service. While hybrid smart contracts are a long-term vision that could strengthen mainstream adoption, Chainlink is improving processes within the current space. Adding value to the DeFi network, Chainlink is developing a DeFi oracle for Vesper Finance to accurately determine the total value locked (TVL) through decentralized price oracles.

Chainlink’s uplift into the top five coins by market capitalization was well-founded and reflected the value that it adds to the blockchain space. Its usability stretches beyond DeFi as Chainlink has secured partnerships with Paxos Global, Smart Zip,, RCN Finance, and What’s more, demand for Chainlink has grown, compelling eToro to list the token on their trading platform.

On the Flipside

  • Chainlink’s price prediction will take longer to achieve if the cryptocurrency market changes momentum.
  • Hybrid smart contracts will require more time to integrate and become widely accepted outside the blockchain space.
  • Chainlink’s price has been mostly stagnant for the past three months, only recording significant gains in the last month.

Smart Contract Limitation And Chainlink 2.0

Chainlink’s current achievements strengthen its 2.0 vision for decentralized oracle networks. According to Timothy Peterson, Chainlink’s network is growing by 12%, and the increasing number of smart contract calls on the network correlates with the price increase. Compounding monthly increases will result in a yearly network growth of 300%. Furthermore, Chainlink reached 500 integrations globally, attaining over 500,000 non-zero account balances. Network integrations include “84 blockchains, 213 projects, 64 node operators, 43 data providers, 33 infrastructure [providers], 24 gaming projects, [and] 22 NFT projects.”

Chainlink’s rapid growth could enable a network effect which, according to Metcalfe’s Law, could rapidly amplify adoption. Metcalfe’s Law emphasizes that the linear growth of the network could entail an increase in its total value. As a result, adoption and integration could rapidly spiral to great heights and increase the price of the LINK token.

Chainlink’s 2.0 whitepaper amply describes the company’s vision of decentralized oracle networks (DONs). The development of DONs will give rise to new decentralized services that also incorporate off-chain networks. To that end, interoperability between off-chain and on-chain services will be facilitated by more agile oracle networks while decreasing fees by 90%.

The vision laid out by Chainlink depicts a digitized world fully immersed in blockchain technology. Smart contracts paved the way for the first use cases of blockchain beyond mere P2P transfers; now, Chainlink aims to enable the full potential of smart contracts.


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Chainlink, A Sleeping Giant

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email