The total value secured by the Chainlink network has officially exceeded $ 75 billion, marking a new milestone for the decentralized Oracle solution that has become synonymous with pricing data services for the rapidly growing DeFi sector.
With this milestone, Chainlink has become “one of the most valuable forms of decentralized consensus on the planet”, according to Protocol co-founder Sergey Nazarov. Chainlink is also one of the fastest growing networks in the entire crypto industry, with the value of smart contracts increasing by a factor of ten since last year.
2020 was a record growth year for the #Chainlink Network. Here’s an overview of key metrics like our introduction to #DeFi, implemented research, and blockchain integrations. Thank you to our great community and great smart contract developers that we are fortunate to work with. OK; LG pic.twitter.com/4E543ALVX6
– Chainlink – Official Channel (@chainlink) December 31, 2020
Chainlink, which is made up of independent Oracle nodes, has seen rapid proliferation across several leading blockchains, including Ethereum, Binance Smart Chain, and Avalanche. DeFi applications based on these and other blockchains use Chainlink Oracle networks to operate their smart contracts and provide market data for on-chain financial applications.
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Since the launch of its mainnet in May 2019, Chainlink has launched over 700 Oracle networks that have secured over 600 million data points in ten blockchains. As Cointelegraph reported in July, the Oracle network took on an average of 1.4 new partners per day in 2021.
The demand for Oracle services has grown exponentially with the introduction of DeFi or decentralized financing. As measured by Total Value Locked (TVL), the DeFi sector is currently worth over $ 253 billion. The industry was virtually nonexistent when Chainlink launched its mainnet two and a half years ago.
When asked about the growth of “Metaverse” technology, underscored by the complete renaming of Facebook to Meta, Sergey Nazarov told Cointelegraph that Chainlink “already supports several Metaverse applications for DeFi, NFTs and games”. He further stated:
“We wholeheartedly expect smart contracts to power the new relationships that are being formed in the metaverse, especially since those relationships must be inherently trustworthy because of the new level of identity that the metaverse enables.”
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As Nazarov explained, Chainlink uses the Cross-Chain Interoperability Protocol (CCIP) to connect different universes. CCIP “will use Chainlink oracles to allow users to move digital assets and execute smart contracts across the various chains used throughout the metaverse,” he said, adding:
“I assume that the trusted metaverse requires trusted data, trusted off-chain computing, and the ability to use multiple chains that Chainlink already relies heavily on.”