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Chainlink Eyes $20 Milestone Following Major Update
- Chainlink has had a great year, but 2024 is shaping out get even better with some exciting developments happening.
- CCIP standardises linking diverse blockchains, facilitating seamless data and token transfer across ecosystems in an ever-increasingly interconnected blockchain world.
- Chainlink Data Feeds provide push-based oracles for smart contracts with accurate external data, focusing on enhancing efficiency, security, and expanding to diverse blockchains and assets.
- Other developments are Chainlink PoR, VRF, Functions and Automation
It has been an exciting year for Chainlink, the blockchain network behind LINK. There have been many developments such as tokenisation, Chainlink’s CCIP, data streams, the partnership with Vodafone and Staking v0.2 – to name just some. And the price of LINK reflects these developments with a 160% increase from January 1. Interestingly most of these gains have been since October, with the rest of 2023 seeing gains and losses between 30% to 40%.
Here in more detail the exciting developments that marked the fourth quarter according to the Chainlink report:
Chainlink’s Cross-Chain Interoperability Protocol
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) aims to standardise linking different blockchains, both public and private. It allows data, tokens, and messages to move across various blockchain systems, striving for smooth integration between diverse ecosystems and bridging traditional web (Web2) with blockchain (Web3) technologies.
This integration seeks to create a global network of contracts and a broad liquidity layer for tokenised assets, aiding financial institutions in developing and linking their tokenised asset ecosystems within decentralised finance (DeFi).
Lorenz Breidenbach, Chainlink Labs’ Head of R&D highlighted the importance of interconnectivity during SmartCon 2023.
We live in a multi-chain world; Chainlink is live on 17 chains today. It’s a very heterogeneous network already today and we will believe the ecosystem will only continue to grow; we will see more and more chains emerge and in order for them to be useful and reach their potential we need to connect them.
Lorenz Breidenbach, Chainlink Labs Head of R&D
For 2024 Chainlink aims to enhance its platform to allow easier enterprise integration with blockchains, assist financial institutions in advancing their blockchain projects, and broaden the Mainnet availability for developers. There are plans to increase support for various tokens and blockchains, particularly in capital markets, and develop new secure asset transfer channels. Additionally, Chainlink is focused on strengthening security measures for safer cross-chain transactions.
Chainlink Data Feeds
Chainlink Data Feeds are essential push-based oracles providing smart contracts with accurate external event information like asset price changes or sports outcomes. Currently leading the market in DeFi oracle solutions, Chainlink is now focusing on improving the economic sustainability and efficiency of these Data Feeds. This involves collaborations with asset issuers to broaden the use of their tokenised assets. Recent developments include integrating Data Feeds on multiple zkEVM blockchains and enhancing security through upgraded internal risk monitoring systems. One example is Polygon zkEVM data feeds which went live on December 15, allowing developers to build DeFi apps.
Additionally, Chainlink has successfully launched Staking v0.2, with significant community participation in securing the ETH/USD Price Feed on the Ethereum mainnet.
Looking ahead, Chainlink plans to implement OCR3, a new offchain consensus protocol, to enhance scalability and efficiency of Data Feeds. This includes a user interface for batching requests. The expansion of Data Feeds to more blockchains and diverse real-world assets is also in the pipeline, alongside the introduction of multivariable Data Feeds providing extended data like market liquidity. Furthermore, Chainlink is researching oracle solutions to better support fewer common assets traded mainly on decentralised exchanges (DEXs).
Further highlights which will continue to be important in 2024
- Chainlink Proof of Reserve (PoR), which autonomously verifies the reserves backing tokenised and wrapped assets across chains and off-chain, ensuring reliability and timeliness.
- Chainlink Automation, which offers developers a standard solution for reliable, gas-efficient, decentralised, and high-performance smart contract automation, essential for building advanced dApps.
- Chainlink Functions, which is a Web3 serverless platform allowing developers to quickly link smart contracts with any external data and perform custom computations.
- Chainlink Verifiable Random Function (VRF), which provides a standard, provably fair, and tamper-proof source of randomness.
In addition, Chainlink is streamlining its platform to enhance service integration, ease of use, and centralised management. This includes seamless service combination, user-friendly tools like SDKs and APIs, and a unified Developer Hub for resources and management across all products. With all this going on, 2024 is likely shaping out to be one of the strongest years yet for the blockchain network.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
