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Chainlink (LINK) Updates – A Year in Review for the Top Oracle Solutions Provider
Published2 months ago
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Table Of Contents
The oracle solutions provider Chainlink (LINK) entered the market in 2014. It was one of the first platforms to focus on solving the many issues plaguing oracles at the time. An oracle is an off-chain sensor that communicates data to and from a blockchain. Today, Chainlink is the leading oracle provider in the market with thousands of projects currently using its services.
Chainlink plays a vital role in providing DeFi networks and Dapps access to data feeds. For example, decentralized exchanges (DEXs) leverage these services to price assets without using an order book. Chainlink is also a crucial component for reserve verification services, logistics, and much more. Its sensors are commonly used to trigger smart contracts as well.
What Makes Chainlink Work?
Chainlink was able to secure its top spot as the premier oracle provider thanks to its unique structure. The platform leverages a decentralized network of nodes and automated systems to improve integration. Chainlink users enjoy protection from gas spikes and automated nonce management. These systems are set up to monitor anything from pricing to payments. This data is used to trigger smart contracts using the transaction manager.
Chainlink is On the Move
Chainlink had a monumental year in terms of network expansion. The team managed to expand the ecosystem considerably thanks to several strategic partnerships. Here are some Chainlink highlights from 2022.
Chainlink Arbitrum Partnership
Chainlink caught the attention of DeFi users once again after announcing a partnership with the top Ethereum scaling solution, Arbitrum. The goal of the partnership was to enable the automation of Dapps built on the Arbitrum network. Notably, some applications such as COTI and Armadillo, Cask, and DeFiEdge already use the network.
Arbitrum continues to expand as it reduces the cost of running protocols on Ethereum considerably. Developers can create protocols using the layer-2 solution and automate its offerings using Chainlink’s oracles. Chainlinks’ decentralized solutions will improve usability and reliability while lowering operating costs for Dapps.
In a recent interview, Niki Ariyasinghe, Head of Blockchain Partnerships at Chainlink Labs discussed how the integration will play out and its implications. Ariyasinghe spoke on the added scalability the partnership will provide to the ecosystem and how the automation will reduce operating costs for many.
Chainlink made another upgrade this year after it announced support for staking. The staking feature was part of the network’s Chainlink Economic 2.0 strategy that seeks to provide more stability to the Ether price feed. Notably, the staking pool launched to a huge response from the community.
It secured the community limit of $170M in just two days. The pool offered a respectable 4.75% annualized rate to participants. This rate makes it both profitable and sustainable for the community. Notably, you can still stake your LINK even though the pool is full. However, you need to be a node operator to bypass the pool limit.
Operators can stake their tokens until the pool hits the $25M restrictions. Interestingly, this staking pool is one of many slated for release according to the company’s blog post. The other pools will launch in 2023. The launch will coincide with the unlocking of the last staking period.
Chainlink Opens NFT Price Feed Oracle
This September saw Chainlink make another major upgrade to its offerings. The network raised eyebrows after announcing an NFT price feed. NFTs are one of the fastest-growing sectors in the blockchain market. These flexible digital assets have found a home in art, gaming, and business applications globally.
In September, Chainlink announced plans to support an NFT price feed that officially launched in December. According to company reports, the project focuses on providing reliable price feed data to the NFT market. Before the launch of the price feed, it was very difficult to get reliable and timely data regarding these assets.
The Chainlink system draws data from several sources to get the most accurate price feeds. The mechanism scans multiple NFT marketplaces before calculating the average. The protocol leverages Coinbase Cloud’s data analysis features to ensure the price is as accurate as possible.
Currently, the NFT price feed supports a handful of NFT connections with plans to expand to all major collections in the coming months. Those who trade Azuki Official, Bored Ape Yacht Club, CloneX, Cool Cats, CrypToadz, CryptoPunks, Doodles, Mutant Apes, Vee Friends, and World of Women can use these services today.
In the coming months, the NFT price feed will expand to support more than gaming collections. The developers envision these services being applied to a wide variety of NFT applications including real estate, p2p lending, and GameFi services. As such, Chainlink remains well positioned for the coming years.
Switched to PoS Ethereum Support Only
In August of 2022, Chainlink notified users that it would stop supporting the Proof-of-Work (PoW) Ethereum application alongside the ETH 2.0 staking chain launch. The decision was made to ensure the network provides the most relevant services to the large Ethereum community moving forward. According to developers, the move will ensure reliable service with the fewest disruptions. As part of its move, Chainlink notified developers to first trial-run all applications to ensure compatibility. Luckily, most systems worked perfectly and Chainlink is now providing several services to the ETH 2.0 market.
How to Buy Chainlink (LINK)
Currently Chainlink (LINK) is available for purchase on the following exchanges.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. This exchange currently accepts Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Chainlink – Still A Pioneering Force in the Market
Chainlink continues to support the crypto sector in a variety of ways. The network has introduced a host of helpful price feeds to support the expansion of DeFi, Metaverse, and FNT systems. Additionally, the developers introduced more passive income features to help improve users’ ROIs. Considering the crucial role Chainlink plays for multiple networks, you can expect the firm to remain a critical part of the market for the foreseeable future.
To learn more, make sure to peruse our Investing in Chainlink guide.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com