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Chainlink (LINK) revolutionized the blockchain industry and its smart contracts by developing the sector’s first and currently largest decentralized oracle service that harnesses data from the real world and delivers it on-chain. According to the project, its Price Feeds service was just introduced to Polkadot’s parachain, Moonbeam, which will allow the developers to receive price data in real-time.
This is an important development for Moonbeam, as well as Polkadot itself. In fact, Moonbeam’s founder, Derek Yoo, noted that this integration will allow the Moonbeam platform to provide building blocks for DeFi development to various teams operating on the parachain.
Chainlink’s own team said the same, noting that developers will have access to price information from a number of different exchanges. As a result, DeFi developers will be able to bring accurate prices to their dApps.
The benefits of Price Feeds integration
Commenting on the move, Yoo further noted that access to off-chain data such as the prices of different assets has a number of uses in the DeFi sector. Currently, one of the hardest things to achieve is resistance to price data manipulation and various types of attacks targeting the DeFi sector.
However, with the ability to harness the price data directly from the exchanges and feed it into smart contracts used to create DeFi protocols, the project should be able to solve these problems, according to Yoo. He stated that the Chainlink integration will be one of the last integrations that Moonbeam needs in order to provide building blocks for DeFi devs.
Meanwhile, Chainlink’s executive Niki Ariyasinghe noted that the integration will allow Polkadot devs to create additional use cases for their interconnected DeFi platforms.
LINK price sees strong volatility due to recent developments
Chainlink also saw a significant price change earlier this month following the announcement of its new roadmap. The price, which was spiraling down alongside the rest of the crypto industry, suddenly spiked up to $9.46 after the roadmap announcement. However, the price crash still continued on June 10th, forcing LINK to drop to $5.5 by June 13th.
Following that, the coin once again recovered to $7.32 on June 16th, only to see another correction that took it down to $6.72 at the time of writing.
One of the new announcements that the project made revealed that LINK staking will become possible as part of the project’s upcoming Chainlink Economics 2.0. This will allow participants to back the project’s network using LINK tokens, thus also boosting its security.
Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. The project launched in 2017, and it brought a decentralized oracle network to the crypto industry, offering other projects to integrate it and use it to receive data feeds from the real world in real-time.
Doing this secures a number of benefits for the projects, many of which will now become available for Moonbeam, such as accurate prices from trusted sources, a way to combat price manipulation and prevent attacks, and a way to allow smart contracts to reach their full potential, as many of them depend on real-world data in order to self-execute. Chainlink is also decentralized and driven by a large open-source community consisting of data providers, node operators, smart contract devs, security auditors, researchers, and others.
To learn more visit our Investing in Chainlink guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.