Is Chainlink’s crown under threat?October 11, 2020
One of the pioneers in the field of decentralized oracles, Chainlink has been largely instrumental in the growth of DeFi apps and the DeFi ecosystem in general. The oracle system holds partnerships with over 200 leading companies and its data oracles have been integrated with almost all the Ethereum-based Decentralized Finance projects. With a proliferating $5 billion+ market cap, Chainlink has been standing tall as the numero uno oracle service provider, until now. As per market experts, a bunch of promising oracles are making headway lately with 100x profit potential and they could pose serious competition to Chainlink.
Here is a brief on Chainlink’s top competitors that speaks of steady growth in recent times.
Band is reportedly the strongest competitor of Chainlink as of now. It’s a decentralized cross-chain oracle system and hence compatible with various blockchains. Based on Cosmos, the oracle is backed by leading crypto exchange Binance and major VC firm Sequoia Capital. Such heavy-weight backing surely speaks of the immense potential of the new oracle system. It’s to stress here, BAND’s (native token of Band Protocol) price spiked by 6000% in August compared to the price rate in the early quarter of 2020.
A chief reason behind Band’s rise is the oracle’s partnerships with multiple leading blockchains, including TRON, Binance Smart Chain, Fantom, dForce, Elrond and more. Talking about the figures, at present the market cap of Band is $286.66 million which is expected to shoot to billions soon.
Tellor also poses serious competition, especially after its recent upgrade.
Tellor (TRB) is a decentralized Ethereum-based oracle system which operates on the Proof-of-Work (POW) consensus protocol. In that light, miners shoulder the responsibility to gather data that are injected into the blockchain smart contracts. It’s true that Tellor shows a comparatively smaller market capitalization ($33 million) yet the oracle is constantly evolving and holds the potential for proliferating growth.
In the initial version, Tellor had shown poor cooperation with blockchain but the recent upgrade has done much to bolster its performance big time. Tellor v2 has been empowered with a huge performance upgrade, especially in regard to pace of settling information on-chain. The Tellor developers have also added more numbers of data points for every block. Besides, Tellor has upgraded security parameters and promised token (TRB) fee burning which is expected to shoot the price of token in near future.
One of the latest names in the scene of decentralized oracles, Bridge (BRG) has been commanding a great deal of attention ever since the announcement of its launch. It’s the first ever public oracle system for TRON blockchain which is poised to take TRON a step further in the DeFi ecosystem. Held last month, Bridge IEO was a massive success and the whole IEO was completely sold out in the first few hours only.
Bridge allows access to real-world data using varied APIs and parsing helpers; the oracle also permits to incorporate various additional data sources. Most importantly, Bridge oracle allows to add different kinds of proof to assure authentic data feeds for the smart contracts and DeFi apps built on them.
With DeFi on rise, it’s only natural that the blockchain world will witness the launch and growth of an increasing number of oracles today. The competition is sky-high and only those that will manage to evolve with time will be able to survive.