Key Drivers Behind Chainlink’s Exponential Growth

Over the past year, the growing adoption of Chainlink Data Feeds was accompanied by the network launch of new compute-based services, leading to an increase in the total number of integrations.

Powering hybrid smart contracts, the blockchain agnostic protocol leverages the largest collection of decentralized services, supporting more than 700 Oracle networks.

Integrations in Layers 1 and 2

The Chainlink ecosystem entered 2022 with more than 1,000 projects, with half of all integrations taking place in 2021, according to the protocol’s recent annual report. report.

Over the past year, Chainlink services have been launched in multiple Layers 1 and 2, including Arbitrum, Avalanche, Binance Smart Chain, Ethereum, Fantom, Harmony, Heco, Moonriver, Optimism, Polygon, Starkware, and xDai.

Layer 1 and Layer 2 integrations (Chainlink)
Layer 1 and Layer 2 integrations (Chainlink)

Furthermore, to adapt to the demand for cross-chain solutions, Chainlink is actively developing a pervasive cross-chain communication protocol for the blockchain industry: the Inter-Chain Interoperability Protocol (CCIP).

In early 2021, Chainlink secured a total of $ 7 billion across the entire blockchain ecosystem, and 12 months later, TVS surpassed $ 75 billion.

Currently, with more than 700 decentralized Oracle networks publishing data on numerous independent blockchains, the data sets most used by DeFi applications include financial market prices in the form of price sources.

Provide access to secure off-chain computing

Over the past year, Chainlink launched multiple services providing various blockchains with minimized trust and secure off-chain computing.

First released on Ethereum in late 2020, Chainlink Verifiable Randomness Function (VRF) expanded support for BSC and Polygon in 2021.

Chainlink VRF provides smart contract access to a secure source of on-chain randomness, required by NFT and on-chain gaming applications.

By supporting the multi-chain ecosystem, Chainlink VRF has grown exponentially, surpassing 2.5 million requests served in dapps.

Number of VRF requests served to dapps (Chainlink)
Number of VRF requests served to dapps (Chainlink)

Chainlink Keepers were also added in 2021, further expanding support for off-chain computation and allowing developers to outsource and simplify DevOp tasks.

Meanwhile, Chainlink’s pricing sources have been upgraded to the off-chain reporting (OCR) protocol, allowing 10 times more real-world data to be delivered on-chain.

During 2021, Chainlink’s oracles have expanded the scope of data available in the chain, to support proof of reserve, proof of supply, Ethereum gas prices, total market capitalization, total locked value (TVL) in DeFi applications, the results of sports games, the electoral race. calls, identity data, compliance metrics and weather reports.

In doing so, the network successfully and safely delivered more than 1.1 billion data points on the chain.

Data points delivered in chain (Chainlink)
Data points delivered in chain (Chainlink)

In 2021, global companies, such as the Associated Press, AccuWeather, and Amazon Web Services, began using Chainlink as their “gateway to the blockchain economy.”

As more data becomes available in the chain, new hybrid smart contract use cases will emerge, which is expected to increase the insured value.

The post The key factors behind Chainlink’s exponential growth appeared first on CryptoSlate.

Source: https://cryptoslate.com/key-drivers-behind-chainlinks-exponential-growth/

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