Chainlink, a blockchain service provider, now has more than $60 billion in smart contracts. According to Bank of America, the network will promote blockchain adoption in the gambling, insurance, and gaming industries.
Chainlink Driving Defi Growth
A research report published Wednesday by DeFiLlama states that Chainlink is a potential driver of the increasing total value in decentralized finance (DeFi). DeFiLlama reports that there are now more than $205 billion in DeFi, up 300% over the previous year.
Defi is the provision of financial services, such as insurance, borrowing and lending, through blockchain-based smart contracts systems rather than traditional centralized systems such banks. Chainlink was built on Ethereum, which is the most popular blockchain for Defi. It currently holds $121 billion TVL.
Chainlink, also known as a “crypto-oracle”, is a device that connects off-chain and on-chain data. These enable smart contracts to be executed based on real-world inputs, and not just blockchain-native variables. It grew exponentially last year, from $7 billion in TVL at 2020 to over $1 trillion by 2020.
Report credits Defi’s recent growth to the “ability for hybrid smart contract, or self-executing, tamper-proof, digital agreements to verifyiably and securely access real world data through oracle nosdes like weather, market prices, and GPS location.”
Analysts also stated that Oracles could “enable the next generation blockchain use cases” and “disrupt major industry sectors.”
Chainlink is on the Rise
Chainlink is being used by major companies like AccuWeather and the Associated Press. They can now monetize their data through smart contract developers. The network is currently home to over 1100 projects.
The native token LINK, which is the blockchain’s cryptocurrency market cap, is now valued at over $7.5 million. Cardano partnered with the network in September to integrate Oracle data into smart contracts.
Bank of America’s bullishness on Crypto
Bank of America is a remarkable investor in the crypto space, despite the conflicts that crypto and banks are often assumed to have. The institution stated in an October report that crypto was “too big to ignore”. This marked a drastic change from the March 2021 position, which deemed Bitcoin “too volatile and impractical” as a store-of-value.
The institution seems to be more interested in the wider crypto ecosystem and blockchain technology as an entire. Its October statement stated that Bitcoin is important but that the digital asset ecosystem is much more.
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