Chainlink does the job of connecting the smart contracts which are based on different blockchains with real and authentic data from the real time world. ChainLink is a decentralized oracle network.
ChainLink connects networks like data providers, web APIs, enterprise systems, cloud services, IoT devices, payments systems, events such as medical data, weather data, sports data, shipping data and asset prices.
Several new use cases are happening in the blockchain network, which includes but is not limited to Insurance Services, Decentralized Finance (DeFi) networks, Gaming Platforms, Insurance services and a range of other ecosystems.
ChainLink anticipates that considering the current pace of growth in new features, grants, integrations, and use cases there will be more of community generated content in 2021.
ChainLink facilitates several rich features like end-to-end decentralization, secure nodes, high-quality data, crypto-economic security, defense in depth, open chain community and blockchain agonistic.
Governments and enterprises will be able to therefore leverage the benefits of blockchain technology with Chainlink as it provides with ease of use and functionality.
Dvision Network, which is a blockchain based virtual reality ecosystem have integrated ChainLink Price Feeds and ChainLink VRF in to their NFT marketplace in order to calculate the cost of creating and selling NFTs and also to determine the distribution of random NFT rewards.
Protection against black swan events are another major plus of ChainLink. For clarity according to Wikipedia, “The black swan theory or theory of black swan events is a metaphor that describes an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight.”
A black swan event can take on several forms within the cryptocurrency industry. Regulatory risks is an example. If a particular government is going to restrict cryptocurrency trading, this can lead to crash in the price of the virtual currency.
Chainlink price feeds provide DeFi apps with maximum price oracle security, data quality and reliability.
Chainlink stated that there are additional layers of redundancy in the form of circuit breakers and Chainlink client diversity that generate hyper-reliability for Chainlink Price Feeds, protecting user funds even amidst an unexpected black swan event.
Traditionally Chainlink circuit breakers are an optional layer of redundancy for Chainlink Price Feeds which get triggered when the latest update from the Price Feed deviates beyond a predefined threshold from the previous round or an aggregation of multiple past rounds e.g. average of the past 5 price updates.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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