The importance of Chainlink (LINK) and Oracles Web3

Chainlink was the most estimated cryptocurrency of 2019, with an estimated over 1200%. Several factors influenced this estimate: the launch of the main network, the announcement of the Google Cloud, the announcement of a partnership with Oracle, and the end of the list on Coinbase.

However, several questions arise: how far can LINK go? Oracles will play a key role in the next generation of the Internet, Web3. Does it match what Chainlink is proposing?

Web3 – The third generation of the Internet

The concept of DApps (Decentralized Applications) presented by Ethereum proposes an evolution for a decentralized World Wide Web. In this way, the transition to Web3 will take place through the adoption of point-to-point protocols and decentralization in all aspects and applications of the Internet.

The term Web3 was first coined by Gavin Wood, co-founder of Ethereum. Web3 marks a new era in the Internet, from centralized applications (such as Facebook) to applications built on decentralized protocols, such as open blocks.

A brief history

Web 2.0 term (also known as Social Web) became popular in 2004, and describes a user-centric web with responsive interfaces and interactivity. This phase is undoubtedly marked by sites like YouTube, Facebook, Instagram, among others.

Compared to Web 1.0, which was marked by very few content creators, most users were just content consumers. There were personal pages, but they were static and with no room for interaction (like the pages hosted on GeoCities).

DApps – Networked decentralized applications3

Ethereum’s vision is to become a platform that allows you to program and run DApps. DApps are, in a simplified way, a smart contract and an easy-to-use web interface. A classic example is the CryptoKitties game, which was a huge hit in 2017.

Thus, a DApp is a web application built on an open, decentralized, peer-to-peer platform. In this sense, it cannot be controlled, turned off or stopped when it is running.

One smart contract, or a smart contract, is an inviolable digital agreement that runs on a decentralized platform (blockchain). More information on SmartContracts here.

The role of oracles on the web3

Oracles were a fundamental aspect of ancient Greek culture and religion. In the oracles, consultations were held with the Gods, which could reveal visions of the future.

Chainlink is responsible for bringing information (outside the chain) of the blockchain to the Ethereum platform. This information can be used in smartcontrats and DApps. Image source.

In the context of the blockchain, Oracles is responsible for providing information outside of the Ethereum (or other blockchain) platform. That is, Oracles is responsible for bringing external information to the blockchain (out of the chain) Ethereum platform. This information can be used in smartcontrats and DApps.

And what external information is this? There’s basically everything there is, for example: football game results, the price of financial assets, weather data, bank deposits, mail tracking data, among many others. In short, oracles are the bridge between the blockchain and the real world. And Chainlink is an Oracle, decentralized and most developed so far.

Collaboration with Web3 Chainlink
The Web3 Foundation (led by Gavin Wood) has announced a partnership with Chainlink in 2018. Source

It will certainly be an essential component of Oracles Web 3.0, as it will allow DApps to access the real world. This event made the collaboration between the Web3 Foundation and Chainlink possible in 2018.

Oracles are a critical component of the Web 3.0 ecosystem, enabling a new wave of decentralized applications that require access to real-world blockchain data. Chainlink is building standards and oracle solutions, and we are excited to align our roadmaps to make it easier for oracles to take advantage of the web.

– Peter Czaban, Executive Director of the Web3 Foundation

More information about Oracles and the use of smart contracts can be found in Oracles, connecting Smartcontracts and the Real World.

perspectives

It is not without reason that Chainlink is one of the largest and most important blockchain projects today, as it is a service that many will use. Oracles are needed to unlock the full potential of smart contracts. And that includes some interesting solutions, such as Chainlink. However, great cooperation and predictions have already been made. Now it’s time for the team to work and deliver results as Chainlink is still developing.

Want to buy a chain link? See our guide or go straight to binance, one of the world’s most trusted agents.

Leave a Comment