Recent market events brought down the price of cryptocurrencies. Chainlink remained as one of the few short-term bright spots. Billy Bambrough wrote about this in a Forbes article entitled “As Bitcoin, Ethereum, Ripple’s XRP, and Litecoin Lose Billions, this One Small Coin has more than Doubled”. Chainlink is currently valued as the 14th largest cryptocurrency by market cap. It saw an approximate 150% price increase from about $1 to over $2.50.
Chainlink itself is an Ethereum token. Its ecosystem is a decentralized oracle network. Bambrough highlighted the importance of Chainlink’s capacity to connect smart contracts to data sources outside of the Ethereum ecosystem. A growing number of experts believe that interoperability is the next great advancement of the blockchain industry. Chainlink is one of the most promising solutions for this endeavor.
In addition to broad data source applications, Chainlink is planning to connect APIs and payment systems. The future of blockchains and cryptocurrencies will likely rest on the shoulders of decentralized applications (dapps). Interoperability will be needed to establish blockchain as a third generation Internet, as opposed to the small, independent closed system that they are now.
Through Chainlink, dapps will be able to leverage the benefits of each other’s services. Just like a popular video game will be sought after by multiple platforms, a dapp that goes viral will be desired by users irrespective of the type of phone that they have. The same can be said for professional applications and the tools that developers use. An economy will be needed to connect this new dapp market. This is where Chainlink payment systems are important.
Through Chainlink-based systems, all types of dapps will be able to integrate services while maintaining the integrity of the blockchain that was chosen to build on. Bitcoin, Ethereum, EOS, Bitcoin Cash, and other cryptocurrencies native to dapps can all find a common ground in Chainlink. This way, dapps can run seamlessly without the need for cumbersome conversions every time communications with a blockchain take place.
This type of integrated ecosystem will be beneficial for both developers and users alike. It will benefit the base currency, Chainlink, as well as small market native currencies of independent dapps. Chainlink will become more scarce as users and developers both drive up prices, while other cryptos on the network will gain more use cases and exposure. It’s a future of decentralized asset exchange and ownership.
Dil Bole Oberoi
