Chainlink (LINK) Ecosystem Sees Exponential Growth in 2021

Chainlink

The Chainlink (LINK) ecosystem experienced exponential growth in 2021. The project has published a list of achievements for the past year and indicated its development outlook for 2022. The most important events are expected to be the launch of LINK staking and the release of CCIP.

According to a recently released report, the previous year was a banner year for Chainlink on many levels. The most popular Oracle network (oracles) has already passed over 1,000 integrations, secured over $ 75 billion in TVS (Total Secure Value), and delivered secure off-chain computing through the use of DON (decentralized Oracle networks ).

Furthermore, Chainlink protocols are used by many of the most popular blockchain networks such as Avalanche (AVAX), Binance Smart Chain (BSC), Ethereum (ETH) and Polygon (MATIC). What’s more, dominant global business brands have decided to run their nodes on the network to access trusted and verified data from a variety of sectors. These include The Associated Press, AccuWeather, Amazon Web Services, Google Cloud Platform or Swisscom.

Chainlink grows in 2021

One of the most impressive findings of Chainlink’s 2021 report is the year-over-year increase in TVS. At the start of 2021, the network was getting around $ 7 billion, only to increase that number 10 times 12 months later. Today, Chainlink oracles secure over $ 75 billion. This gives the network second place in the entire DeFi ecosystem.

Another success story for the largest oracle network is the number of partnerships and integrations. In December, it crossed the barrier of 1,000 projects that use off-chain data provided by Chainlink in their hybrid smart contracts. In addition to DeFi’s core areas, oracles secures value in many other sectors. As the report states:

Chainlink is also used to secure value through a number of innovative DeFi use cases such as algorithmic coins, decentralized exchanges, prediction markets, payment networks, payment platforms. insurance, asset management protocols, and more. “

Since mid-2021, there has also been a huge increase in Verifiable Randomness Function (VRF) access requests – over 2.5 million – and data points delivered on-chain – over 1.1 billion. In this way, VRFs and so-called Chainlink Keepers have extended support to more blockchains, providing developers with access to a secure source of verifiable randomness.

Outlook for 2022

In a new 1.5-hour video titled “The Future of Chainlink,” Sergey Nazarov, co-founder of Chainlink, outlined the development plans for the coming year. During the presentation, he explains the need for deterministic cryptographic truth in relation to the current system of probabilistic guarantees on paper. Additionally, he broadly describes how Chainlink is facilitating what he considers to be a key societal transition.

Commenting on the presentation, popular Chainlink community ambassador, @ChainLinkGod tweeted the 3 most important initiatives for the project’s development in 2022. These are, in his opinion:

  • Release of CCIP
  • Release of LINK staking
  • Chainlink as an abstraction layer for enterprises

Cross-Chain Interoperability Protocol (CCIP) is an open source standard for secure cross-chain messaging. It enables programmable token bridges and cross-chain applications that can send tokens and commands between blockchains and Layer 2. For example, Celsius, a leading CeFi platform, announced that it would use CCIP to generate income in its multi-channel ecosystem. As the report says:

“CCIP will provide smart contract developers with generalized, compute-enabled infrastructure for transferring data and commands across public and private blockchains.”

Next, LINK token staking is a much anticipated feature of the Chainlink network. It should improve the cryptographic and economic security of the Oracle network. LINK will be blocked as a security measure to generate revenue from usage fees, which can be reduced in the case of malicious nodes.

Finally, the last point highlights the importance of Chainlink for global enterprises that will integrate with blockchain networks. The introduction of the abstraction layer means that businesses can connect their backend system to any blockchain through a single integration. This will allow any business to generate new revenue streams and mitigate counterparty risk through direct access to smart contracts.

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