On June 13, 2022, Elwood Technologies, a digital asset platform backed by Goldman Sachs, announced a new integration with Chainlink, which serves as a data bridge between DeFi and the “outside world”. Chainlink is a decentralized oracle, providing data on numerous things, such as fiat currencies, prediction markets, and other on- and off-chain information.
This announcement particularly pertains to Ethereum smart contracts, which will benefit from the Web3 data and analytics that Chainlink can provide. Blockchain developers will benefit, as well, since Chainlink gives them a decentralized option for accessing and utilizing a large range of data.
What Chainlink Data Integration Means for Crypto Investors
Chainlink is currently the largest decentralized oracle network. Its reliable track record and wide usage were likely key reasons why Elwood Technologies chose to integrate with Chainlink. This is an exciting update for investors, since Chainlink is a great data and analytics solution for smart contracts, as well as many other applications on blockchain.
Specifically, Chainlink is more resilient than other oracles. Moonbeam, a Polkadot-based smart contract parachain, also recently announced an integration with Chainlink. Moonbeam founder Derek Yoo explained in a release that a big part of why he chose to work with Chainlink was the oracle’s resistance to attacks and data tampering. This characteristic will certainly benefit Elwood Technologies, as well, along with the many investors and developers who use Chainlink.
Chainlink’s tamper-resistant oracle services and wide adoption will help platforms that integrate with it reach a wider audience and offer accurate and secure data. This may help bring more investors to the crypto world, which will in turn help make more currencies truly mainstream like Bitcoin has become.
Reliable, decentralized oracles are only going to become more important. As experts point out, data reporting and analytics are crucial for making informed business decisions and tracking key off-chain data streams, such as information about consumer behaviors, major events, or weather. Chainlink is a clear leader in this department, comprising over 100 billion unique data points. It is also worth noting that Chainlink’s hybrid smart contracts are not just useful for investors or people involved in blockchain betting. They can also be used to automate various processes for businesses, using the yes-no conditions of smart contracts that execute based on oracle data.
The Role of Chainlink in Blockchain
For those who may be new to crypto or have not come across oracles yet, they play an important role in blockchain. Smart contracts rely on data from oracles to make decisions.
So, when an oracle pulls information from the outside world, such as election results, it has to be able to give reliable and accurate information. Smart contracts determine who gets money and how much, so it is crucial that they are connected to a good oracle, since people’s finances could be seriously affected by the information the smart contract receives.
Chainlink takes a unique approach as an oracle since it is decentralized and tends to have a focus on privacy. It has many applications, ranging from hybrid smart contracts to blockchain games to NFT transactions and more. Chainlink is built on Ethereum, so it is compatible with the growing number of blockchains, currencies, and smart contracts that are also supported by Ethereum. As Chainlink and blockchain in general become more popular, more applications for Chainlink are likely to be discovered.
More Chainlink Integrations On The Way
Chainlink is today’s leading blockchain oracle, paving new ground as a reliable and secure decentralized oracle with a growing number of integrations and applications. As more people invest in crypto and get involved in blockchain technologies, such as blockchain games and NFTs, more platforms will need a trustworthy oracle to provide off-chain data to users and investors. Investors can expect more Chainlink integrations to be announced over the months and years ahead, in addition to this recent Elwood Technologies integration.