As part of our continued effort to unite crypto-economic networks to strive towards a common and shared purpose, there couldn't be a better project to highlight than Chainlink, a decentralized oracle linking off-chain external data with on-chain smart contracts, or a bridge between old legacy systems and new blockchain systems. For what is also described by some as the god protocol, I couldn't do the vision a better justice than curating the best analytic pieces. Here are the best links showcasing the future potential of Chainlink:
Chainlink, An Overview And Our Focus
The Smart Contract Connectivity Problem, is the inability of a smart contract to interact with any external data feed, or other resource that is run outside the node network in which the smart contract itself is executed. The decentralized nature of smart contracts that makes them tamper-proof, also removes their ability to access key contractual performance data, denying them the use of any & all web APIs, as well as precluding them from utilizing important existing outputs like bank payments. This lack of external connectivity is inherent to all smart contract networks, due to the method by which consensus is reached around blockchain transactions, and will therefore be an ongoing problem for all smart contract networks.
A big consideration when planning was to enable people to run Chainlink in as many places as possible. An important tenet of Chainlink is a diversity of inputs. We want to make a Chainlink node affordable to run and easy to install, so that people all over the world can run one on whichever computing platform they choose. So, make it accessible and do so without compromising on security or developer productivity.
The Four Biggest Use-Cases of Chainlink
As they say, every era comes to an end and in this case it’s the end of centralized value exchange. But from every end, rises a new beginning, and that beginning is decentralized value exchange through the use of smart contracts. Connection, security, data driven, and monetization are features that will be vital to the future ecosystem of smart contracts, which is why Chainlink is in a prime position to be the centerpiece of it all.
Chainlink — The Missing Piece To The God Protocol
If Chainlink reaches its full potential, it could complete the God Protocol, perfecting the first trustless third party in world history. This is likely to obsolete many current blockchain projects and the ramifications are bigger than most people understand. Klaus Schwab, founder and head of the World Economic Forum, described this phenomenon of decentralized trust in a book called The Fourth Industrial Revolution, in which he even mentioned SmartContract.com by name. So with all that’s been said, the choice is yours: watch from the sidelines or take a risk on what could be one of the most valuable pieces of digital real estate heading into the future.
Our Investment in ChainLink
We believe that most decentralized applications will need to utilize middleware to incorporate value added services beyond the computational power provided by blockchains. Therefore, we believe critical pieces of middleware technology (i.e. ChainLink) will capture similar amounts of total transaction volume and proportional value as the blockchain platform (i.e. Ethereum) providing computing power for decentralized applications.
Blockchain smart contracts are finally good for something in the real world
Chainlink has partnered with several smart-contract projects to demonstrate its oracle network. For example, a project called OpenLaw, which is developing smart-contract-based legal agreements, is using a Chainlink oracle to determine exchange rates between ether and US dollars at a given time. “I don’t know if anyone has fully solved the ‘oracle problem,’” says OpenLaw cofounder Aaron Wright. But he says Chainlink and Town Crier are a “good first attempt.”