The US-based investment analysis firm Weiss Ratings says a billion-dollar crypto revolution is underway, with one cryptocurrency set to take center stage.
In tweet posted on Saturday, Weiss Ratings says the oracle network ChainLink is well-positioned to leverage the burgeoning growth of smart contracts and decentralized finance (DeFi).
“DeFi platforms are red-hot with nearly $1 billion in collateral pledged. Oracles empower not only DeFi, but just about everything that 2nd & 3rd-generation cryptos do. So, it’s hardly an exaggeration to say that Chainlink will lie at the heart of the crypto revolution going forward.”
Prior to the existence of ChainLink, smart contract platforms could only manage data that’s available within the blockchain. The applications were limited because data outside of the blockchain such as market data, events data, or bank payments were inaccessible.
ChainLink is designed to change the game by acting as a bridge between real-world data and on-chain data. The oracle network takes data outside of the blockchain and feeds them on-chain.
Crypto analysts Juan M. Villaverde and Bruce Ng say that due to ChainLink’s unique use case, the cryptocurrency is way ahead of most cryptocurrencies in terms of adoption. They point out that smart contract cryptos such as Ethereum (ETH), Tezos (XTZ), Fantom (FTM), Polkadot (DOT), and Zilliqa (ZIL) all rely on ChainLink to source real-world data.
“Chainlink already supplies secure and reliable price feeds to DeFi platforms like Synthetix, Compound, Aave and 20 others.”