Learn about its vision, team, use cases, and competitors

Vision

Chainlink is a decentralized oracle network that allows blockchains to securely interact with external data feeds, events, and payment methods. This provides off-chain information required to smart contracts. Chainlink enables access to real-world data and off-chain computation and thus expands the capabilities of smart contracts while maintaining the security and reliability of blockchain technology. Chainlink powers the future of smart contracts.

Smart contracts are disconnected. Blockchain lacks the functionality to secure external data or send data to off-chain systems. Chainlink connects smart contracts to real-world data, events, payments, and more in a tamper-resistant and reliable manner.

Chainlink has become the oracle solution for the DeFi space, supporting top projects like Aave, Synthetix, and yearn.finance, and others across the sector.

Team

Chainlink is built by a global open-source community of smart contract experts, developers, academics, and business experts who want to build next-generation data infrastructure for smart contracts.

Use cases

Decentralized finance

Chainlink oracles create advanced smart contracts for the DeFi space, particularly those that execute based on market data like FX rates, interest rates, asset prices, indices, and more.

External payments

Many businesses refrain from holding volatile cryptocurrency assets on their balance sheet. Smart contracts then need to have access to a wide variety of payment options to serve their customers.

Insurance

Policyholders have an incentive to falsely report positive metrics in their insurance applications. Insurers have an incentive to raise rates. Chainlink-powered smart contracts allow data to directly determine the outcomes and make insurance contracts more objective and equal standing.

Supply chain

Along a supply chain, there are payments transferred, changes in ownership, customs clearances, regulatory oversights, and documents shared between parties. Smart contracts can automate these processes. Chainlink oracles can connect supply chain smart contracts to real-world sensors such as GPS, temperature, velocity, acceleration, humidity, luminosity, and more. This data cannot be manipulated by any single party, which creates a single source of truth for all parties.

Government

Government institutions need greater transparency, accountability, and efficiency. Blockchain provides a new infrastructure for tracking and executing government processes. Oracles use objective data to trigger the execution of those actions.

Competitors

One of Chainlink’s competitors includes Band Protocol. Like Chainlink, Band is a platform for gathering offchain data and storing it on a blockchain. Both platforms are so-called ‘oracle’ platforms, which can serve as connection points between the blockchain and non-blockchain worlds. Other competitors comprise Microsoft Coco, Microsoft Bletchley, Corda, Oraclize, Town Crier, Hivemind, Aeternity, and Mobius.

Conclusion

Chainlink has been rumored to have partnerships with Grayscale and Google. This has increased confidence in the company. Chainlink is also known for its technological innovation that will revolutionize the efficiency of cryptocurrency. The main reason behind investor confidence in Chainlink is their technological advances in the protocol.

Key Takeaways:

  • Chainlink is a decentralized oracle network that allows blockchains to securely interact with external data feeds, events, and payment methods.
  • Chainlink powers the future of smart contracts.
  • Chainlink has become the oracle solution for the DeFi space.
  • Chainlink is built by a global open-source community
  • Chainlink creates advanced smart contracts, is used for external payments, to provide insurance and by the government to create transparency.
  • Chainlink is known for their technological innovation that will revolutionize the efficiency of cryptocurrency.

RADA Ecosystem: RADA Media, RADA Venture Capital, and RADA Dapp