Chainlink Unveils Exciting New Developments, Yet LINK Drops 8%

Interoperability blockchain and data oracle Chainlink unveiled a swathe of exciting new features revolving around decentralised finance (DeFi). The popular protocol has been extremely active lately, with the developments coming as they work with multiple big-name institutions (such as SWIFT and ANZ) to improve Web3 interoperability. Included in the release was a staking upgrade for LINK holders, a new product called “Data Streams,” and improved decentralised computing capabilities. 

Staking v0.2

Staking is a vital cog in the Chainlink ecosystem. Proof-of-stake networks rely on staked tokens to verify transactions made on the network and to ensure nobody is trying to dupe the system. However, Chainlink requires its validators (stakers) to verify real-time data and produce tamper-resistance “oracle reports”. Essentially, these reports reflect the state of something in the external world, such as a product being checked for quality assurance.

The staking upgrade improves the original system by providing validators greater flexibility and security. In addition, rewards distributed to those locking up LINK on the network will now follow a dynamic structure based on how many users are staking in the pool. Additionally, Chainlink is expanding the potential staking pool by nearly 80%, while investors will find it easier to withdraw staked LINK.

Data Streams

As part of the protocol’s slate of upgrades, Chainlink has released “Data Streams” on the layer 2 platform Arbitrum. This product is designed to improve network latency when providing decentralised exchanges and other DeFi platforms with live market data. 

In a press release on Monday, Chainlink co-founder Sergey Nazarov unveiled the new product: “Data streams not only enables DeFi protocols to support execution speeds and a user experience that rival centralized exchanges, but to do so without compromising on the core Web3 value of fair, transparent and decentralized infrastructure”.

LINK falls while Chainlink soars

Although Chainlink’s new features are viewed as bullish among much of the community, the performance of LINK was anything but. Since announcing the protocol’s economic upgrade, the price of LINK has fallen nearly 8%. 

However, when viewed in context, it is likely the performance of LINK isn’t completely related to the unveiling of Chainlink’s new products. The crypto sector enjoyed a positive week leading up to the news, and the market dropped overnight as part of a broader correction. Even considering LINK’s 8% downturn over the past 24 hours, the coin is still up close to 1% weekly.