- Chainlink (LINK) points out that its reliable operator, multiple layers of data aggregation, cost-efficient delivery, and in-depth defence approach are the major reasons for its growing adoption.
- Chainlink is reported to have enabled $15 trillion in transaction value and has been adopted by some of the largest Web3 protocols.
Industry-standard decentralized computing platform Chainlink (LINK) has highlighted some of the key features that cement its dominance in specific areas of the Web3 ecosystem, in a recent post on X.
Above all else, oracles must provide security and reliability.#Chainlink is the most widely adopted decentralized computing platform because of its defence-in-depth security and unparalleled reliability.🧵— Chainlink (@chainlink) September 4, 2024
High Quality and Hyper Reliable Operator of Chainlink
Firstly, Chainlink reported to have a high-quality, hyper-reliable operator, which includes DevOps teams and enterprises with years of experience in running critical infrastructure. The specific role, according to its 2022 blog post, is to participate within decentralized oracle networks and ensure that engineers fetch external data more securely and reliably.
While contracts can choose to send their data requests directly to a single Chainlink node and receive a single response, Chainlink nodes are most powerful when combined into an Oracle network. Decentralized oracle networks aggregate data from any number of Chainlink nodes to remove any single point of failure in the sourcing and delivery of that data to the blockchain.
Multiple Layers of Data Aggregation
Secondly, the post captured the Multiple Layers of Data Aggregation as one of the most stand-out features of the network. In accompanying details, it was explained that Chainlink Data Feed has an incredible level of uptime, security, and quality data. This is evident in the fact that the Data Feed is one of the most widely used price oracles in the Decentralized Finance (DeFi) market. According to Chainlink, it has already secured billions of dollars in value for renowned protocols such as Aave, Synthetix, and Yearn.
Cost Efficient Delivery
Chainlink also highlighted the cost-efficient delivery of its services as another reason linked to its fast-growing adoption. Its Data Feed is reported to be highly configurable, using an off-chain consensus protocol to reduce the price drastically. In 2023, Chainlink launched its Data Streams, which later entered the Mainnet Early Access on Arbitrum. This is said to combine the low latency data delivery and automated data execution to “unlock a new generation of ultra-fast and user-friendly derivatives products.”
With Chainlink Data Streams, decentralized applications (dApps) now have on-demand access to high-frequency market data backed by decentralized and transparent infrastructure. This innovation enables DeFi protocols, such as derivatives dApps, to deliver a centralized exchange (CEX)-like user experience with on-chain execution faster than ever before—all without compromising on Web3 values.
Chainlink Defense In-depth Approach
Finally, its defence-in-depth approach, in addition to its client diversity, on-chain transparency, backup networks, and active monitoring system, were mentioned as some of its crucial features.
The platform has, since its inception in 2019, enabled over $15 trillion in transaction value and also ensured the provision of cutting-edge solutions and services for the creation and securing of tokenized assets. On top of that, it has been adopted by several high-profile Web3 protocols and traditional financial institutions, including Sonic Labs, as we reported on September 4.
At press time, LINK was trading at $10 after declining by 8% in the last seven days, 41% in the last 90 days, and 33% from year to date. Our data also suggests that the asset’s daily trading volume has declined to $189 million at press time.
