If you are new to ChainLink you need to understand price feeds, off-chain data, on-chain data, preventing manipulation attacks and single points of failure.
Price feeds are important because market data feed provides price and other information so market participants can decide whether to buy or sell securities and commodities.
Off-chain data refer to those transactions occurring on a cryptocurrency network that move the value outside of the blockchain. Due to their zero/low cost, off-chain transactions are gaining popularity, especially among large participants.
On-chain data includes the information of all occurred transactions on a certain Blockchain network – or put differently – all information written on the blocks of a Blockchain. In case of a public Blockchain, this information is available for everyone to see.
Preventing Manipulation Attacks is important because This attack aims to modify application settings in order to cause misleading data or advantages on the attacker’s behalf. They may manipulate values in the system and manage specific user resources of the application or affect its functionalities.
A single point of failure (SPOF) is essentially a flaw in the design, configuration, or implementation of a system, circuit, or component that poses a potential risk because it could lead to a situation in which just one malfunction or fault causes the whole system to stop working.
High quality price inputs to prevent single points of failure is becoming increasingly important for use cases like decentralized finance, smart contracts data inputs, and several others and Chainlink provides the largest collection of decentralized services powering the world’s hybrid smart contracts facilitating reliable data.
Chainlink expressed: The Total Value Secured (TVS) of the Chainlink Network surpassed $75B, a 10x+ increase on the previous year. Chainlink now supports 700+ oracle networks, with oracles feeding market data & other datasets on-chain, such as weather data, sports stats, Proof of Reserve, & more.
The Chainlink ecosystem now consists of 1,000+ projects, with half of all integrations taking place in 2021. Chainlinked applications secure the majority of TVL across DeFi lending & derivatives markets, supported by oracle networks that bring critical market data on-chain.
Chainlink oracles have serviced 2.5M+ requests for secure off-chain computation. Chainlink VRF and Chainlink Keepers have expanded support to more blockchains, providing developers access to a secure and reliable source of verifiable randomness and DevOps automation.
As a blockchain-agnostic protocol, Chainlink has expanded to support 12 chains and layer-2 scaling solutions. When Chainlink oracles are deployed on a new network, that on-chain ecosystem experiences a surge of growth as developers are empowered to build more advanced dApps.
Across 2 Chainlink hackathons, there were: 11,000+ signups 420+ submissions $730k+ in prizes The open-source dev ecosystem supporting Chainlink has rapidly grown, with 3,300+ pull requests from 180+ contributors in 2021 & 4,000+ public GitHub repos now referencing Chainlink.
Chainlink is the leading oracle network in terms of enterprise adoption. Top enterprises like the AP, AccuWeather, AWS, GCP, & Swisscom joined the Chainlink ecosystem to access the blockchain economy and help the Chainlink Network securely deliver 1.1B+ data points on-chain.
Chainlink is supporting the growth of the multichain ecosystem by developing the Cross-Chain Interoperability Protocol (CCIP). Cross-chain innovation is set to unlock massive value across global industries and help enable the shift to a world powered by cryptographic truth.
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