Chainlink, the decentralized oracle middleware play designed to help smart contracts interact with real-world data, is coming to the Ethereum mainnet at the end of May.
That’s per SmartContract chief executive officer Sergey Nazarov, who oversees and has helped create the Chainlink network. As part of New York Blockchain Week’s festivities, Nazarov announced at Consensus on Tuesday that Chainlink’s oracles would be ready to run on Ethereum as of May 30th.
The revelation marked a watershed moment years in the making for both Nazarov and SmartContract. It’s also a milestone for Ethereum, too, as Chainlink’s launch will be the largest and most reputable decentralized oracle service to hit its network to date.
Highlighting such implications and Chainlink’s readiness to move forward, Nazarov said the following in his Consensus remarks:
“The fundamental value of this, in our opinion, is that we’ll be able to provide decentralized oracles for the existing dapps on Ethereum and the many, many dapps that aren’t on Ethereum yet. […] We basically feel we’ve reached the point where we have a substantial enough amount of security guarantees, we have enough data providers that want to sell data directly to contracts.”
Indeed, the mainnet advancement comes as more startups and enterprises are building on Ethereum or Ethereum-based tech than ever before. Accordingly, Chainlink should be well positioned via its first-mover advantage and its reputability (e.g. collaborations with SWIFT, etc.) to become a much bigger part of the second-largest crypto’s ecosystem going forward.
Why Decentralized Oracles?
Smart contracts are nifty, but one thing they can’t do is communicate with external data feeds by themselves. For that, they need another layer placed in between for facilitation, and an oracle serves as that layer.
For example, oracles can fetch bank account transaction data or sports scores for a smart contract, after which the smart contract can interact with the data in whatever way it’s been designed to.
However, crypto projects have previously had to build their own oracles if they needed their functionalities. The Augur team created their own oracle to back their decentralized prediction marketplace, but it won’t make sense for every project to do the same. That’s where Chainlink comes in: it’s akin to a Decentralized Oracle-as-a-Service (DOaaS) offering.
Alas, with Chainlink live on the Ethereum mainnet, developers will now be able to leverage the capabilities of oracles within dapps without having to build these oracles themselves.
Read: What are Oracles? Smart Contracts, Chainlink & “The Oracle Problem”
Chainlink Ascending as of Late
Chainlink’s been on a tear recently.
Alongside bitcoin (BTC), Chainlink’s LINK token has been one of the best-performing crypto’s so far this year: it’s up an impressive 65 percent on the month and up 96 percent over the last three months.
With the LINK price at $0.84 USD, the token is now only 34 percent shy of its all-time price high of $1.28. That’s a lot closer than many other top cryptocurrencies. For example, the bitcoin price is still down 59 percent from its $20,000 top and ether (ETH) is down 83 percent from its last high.
With that said, if further buy pressure keeps its momentum going, LINK could join Binance’s exchange token BNB in becoming one of the first cryptocurrencies to eclipse their previous price records in the cryptoeconomy’s current bullish uptrend.
Whether that will happen remains to be seen, but it’s clear traders are feeling more optimistic toward the project as it’s continued to accrue solid partnerships throughout the blockchain space. On May 9th, Chainlink’s builders announced they had secured a deal to bring Chainlink’s oracles to the Hedera Hashgraph distributed ledger.
That partnership is now among 30 that Chainlink has locked down. And more people will be watching now as future partnerships are announced.