- Chainlink stunned crypto community with release of new white paper titled Chainlink 2.0
On April 15, the team at Chainlink stunned many in the crypto community with their release of a new whitepaper titled Chainlink 2.0.
In case you didn’t know, Chainlink is one of the largest blockchain companies by market cap. And it’s a blockchain oracle.
There are many blockchain oracle projects, but Chainlink is the biggest. Oracles are very unique in the blockchain world because they act as bridges between what is called “on-chain and off-chain data”. Off-chain data means anything that exists out off the blockchain. On-chain data is the data on the blockchain. So oracles allow blockchains to access information without compromising the privacy of the on-chain data.
Chainlink 2.0 will broaden the use of what’s called “hyrbrid smart contracts”.
Elliotrades Crypto gave his assesment in a recent video of what he believes these hybrid smart contracts are. He said,
“Essentially this is a smart contract that combines what the off-chain networks do well with what the on-chain networks do well.”Elliotrades Crypto
This is the first time in the oracle blockchain space to have built these hybrid smart contracts, and it most likely will have a revolutionary impact in the way blockchain technology is used and also in the cryptocurrency industry in general.
In regards to the release of Chainlink’s new whitepaper, Chainlink co-founder Sergey Nazarov said,
“What we’re seeing is the start of a redefinition of what the blockchain industry is about, away from just being about Bitcoin and just being about tokens, to being about many more things.”https://decrypt.co
Nazarov believes that blockchain is still a technology with much room for improvement and growth. He openly expresses that these hybrid smart contracts will bring a boom to the decentralized finance industry like never before.
“DeFi is a collection of hybrid smart contracts interoperating with each other, and then using oracles to allow themselves to operate properly. We’ve learned an unbelievable amount about what it takes to build a good hybrid smart contract [and] what it takes to build a good, highly reliable set of oracles into an oracle network.”https://decrypt.co
Will Chainlink deliver on these grand promises?
It seems likely – nearly every blockchain project that needs the services of an Oracle goes to Chainlink. They’ve proven themselves to be cutting edge developers who fill a crucial and much needed outlet for other developers in the cryptocurrency industry.
Possibly the most stupendous promise which Nazarov made while discussing Chainlink 2.0 is that he believes that Chainlink 2.0 will turn decentralized finance (DeFi) into a $500 billion dollar industry.
According to Coingecko.com, the DeFi industry market cap sits right above 100 billion dollar. If what Nazarov has said comes true this will be a 5x in value of growth which is absolutely insane. Knowing the cryptocurrency market this wouldn’t be too big of a surprise.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.