- A renowned crypto -influencer and investor has emphasized five reasons why Chainlink transcends Oracle and dominates the blockchain ecosystem.
- He believes that chain link is the missing piece of the puzzle In the fragmented blockchain world.
In a recent update, CNF discussed how Chainlink dominated the Real World Assets (RWA) ecosystem. In that report it was emphasized that it had become the most frequently mentioned RWA token on social media.
Today, a popular investor called the Crypto Panda has explained in a detailed post why the decentralized blockchain Oracle Network has dominated in popularity and distinguished itself from the thousands of competitors.
First, he believes that Chainlink solves the blockchain problem. According to him, various block chains have been launched, but they are highly insulated and fragmented. Fascinating, Chainlink has become the missing piece of the puzzle and the universal standard or a single and safe layer that connects it.
Secondly, the crypto Panda believes that “smart contracts are stupid without a chain link.” Although it admits that smart contracts are powerful, the crypto investor pointed out that they cannot collect external data or activate off-chain actions independently. In the meantime, Chainlink is specifically designed to connect block chains with the real world, as mentioned in our previous newsletter.
According to him, the Chainlink Runtime Environment (CRE) solves a big problem by enabling developers to build logic that runs over every chain. The most important thing is that it ensures that this is done safely and automatically.
MEV Bots Protection, Chainlink Build Ecosystem and Reputation
At his third point, the Crypto Panda emphasized that Chainlink solves the MeV problems (MEV) Bot problems (MEV). The analyst has thrown more light on this and revealed that Chainlink builds up the invisible layer of moving value on the internet of contracts.
According to him, this starts with the payment abstraction layer. This works as a Universal Decentralized Applications (DAPP) settlement layer that helps DAPPS to pay a token over each chain. This makes Chainlink the Tolboot of Web3 where Stablecoins, Gastokens or app coins run through his infrastructure. To secure these transactions, Chainlink has a MEV protection to facilitate the operations within the ecosystem.
In every chain, bots are available to steal profit according to the investor, which means that users cost billions of dollars. Chainlink solves this problem via the fair sequencing services. This ensures that transactions are classified in a fair order before they reach the chain. It also unlocks a function called Smart Value Recapture to return part of this value to the network instead of going to bad actors.
Fourth, the investor emphasized that “the Build -Ecosystem is feeding link holders.” According to him, the Chainlink -Builden program Web3 applications enables priority to gain access to Chainlink -Services. In short, these include price feeding, cross-chain interoperability protocol (CCIP), VRF, automation, etc.
In exchange, the apps commit part of their token supplies back to the Chainlink network. In this case, value flows back to strikers, making it an economy where real services generate real value.
Finally, Chainlink would have made a network where all junction operators are the same. According to him, this is breeding competition to allow only the best junction to survive.
The services of Chainlink are strongly adopted by various renowned projects, which underlines the effectiveness and groundbreaking use cases. As detailed in our earlier reporting, the CCIP was recently integrated into Solana. Jupiter has also added Chainlink’s data flows to stimulate his eternal trade market, as we have explained earlier.