Chainlink (LINK) Update for 7 June 2020: New Partnerships and Latest Price Action
This article provides an update on decentralized oracle framework Chainlink’s most recent partnerships and the LINK cryptoasset’s latest price action.
What is Chainlink?
“Chainlink (LINK) is a decentralized network that provides information (oracles) to smart contracts.
“Founded in 2017 by Sergey Nazarov and Steve Ellis, Chainlink aims to solve the problem of off-chain information sourcing by smart contracts for their execution parameters. Smart contracts are designed to execute automatically when certain parameters are met, however, when these parameters exist off-chain there is a reliance on sources of information (known as oracles) to provide the necessary information. Off-chain oracles tend to be centralized and with it comes a reliance on a third party to provide critical information in a trustworthy and time critical manner.
“Chainlink aims to break this reliance by feeding information to smart contracts via a network of decentralized oracles that work together on the Link blockchain to verify and forward critical information to these contracts. The ChainLink network allows users who have either a data feed or information carrying APIs to easily provide information to smart-contracts in exchange for the LINK token.”
Chainlink’s Most Recent Partnerships
On June 5, Tornado Cash, which is “a decentralized non-custodial application that allows users to send private transactions on Ethereum”, announced the launch of “an open-source library that Ethereum developers can use to get the current gas price for their dApp”. This library, which is “currently live and integrated into the Tornado Cash UI for calculating a user’s recommended gas fee”, uses the Chainlink gas oracle “as the default reference price when the off-chain APIs do not or cannot respond.”
Tornado Cash’s blog post went on to explain that “Tornado.cash’s UI will automatically default to referencing Chainlink’s Gas Price Reference oracle in situations when all four off-chain API providers fail to respond.”
Also, on the same day, Texel, which is a non-fungible token (NFT) startup founded in 2018, announced that it is going to use Chainlink VRF to “determine the DNA and characteristics” of their digital tulip NFTs and that in the future Chainlink will “allow these tulips to respond to real-world events like the weather.”
Chainlink’s Latest Price Action
According to data from CryptoCompare, Chainlink is currently (as of 06:37 UTC on June 7) trading at $4.372, up 0.21% in the past 24-hour period:
And in the year-to-date (YTD) period, Chainlink has gone from $1.76 to $4.372, i.e. LINK’s price has increased a very impressive 148.40%:
Featured Image Courtesy of Chainlink