LINK marines rejoice after Chainlink 2.0 brings a new roadmap and staking

Published at: June 7, 2022

Passive income opportunities are one of the biggest draws in the cryptocurrency ecosystem because it gives investors an easy opportunity to grow their portfolio size regardless of the day-to-day price action.

The latest token to get a bump in its price after announcing the upcoming implementation of staking is Chainlink (LINK), the decentralized oracle network that provides important off-chain information needed for the proper functioning of smart contracts.

Data from Cointelegraph Markets Pro and TradingView shows that since bouncing off a low of $6.67 on June 4, the price of LINK has increased 35% to hit a daily high of $9.00 on June 7.

Here’s a look at what the new developments in the Chainlink ecosystem that could be backing in June 7's price rally.

Staking LINK has been years in the making

The ability to stake LINK has been a sought-after capability for several years now because Chainlink has consistently been the largest oracle project in the entire cryptocurrency ecosystem.

Staking marks the start of #Chainlink Economics 2.0, a new era for the long-term security and sustainability of oracle networks.In this update, we define the long-term goals, roadmap, and initial implementation of staking in the Chainlink Network.https://t.co/WJkoUzPA0i

— Chainlink (@chainlink) June 7, 2022

According to the announcement released by Chainlink, the overarching goal of staking on the network “is to give ecosystem participants, including node operators and community members, the ability to increase the security guarantees and user assurances of oracle services by backing them with staked LINK tokens.”

By staking LINK, the ability for nodes to receive jobs and earn fees on the Chainlink network will be enhanced while the ecosystem as a whole will benefit from an “increase in cryptoeconomic security and user assurances.”

Staking not only introduces an incentive to provide reliable data, but it allows for a penalty mechanism for underperforming nodes who fail to achieve the goal of consistently generating accurate oracle reports and delivering them to specific destinations in a timely manner.

Greater community participation

Another benefit of introducing staking is that it will help encourage a larger amount of the Chainlink community to get directly involved with the network by staking LINK to support the performance of oracle networks.

Getting more individuals involved with community monitoring directly helps to increase the decentralization of the Chainlink network and enables “a robust reputation system and slashing mechanism.”

The addition of staking is also expected to increase network adoption over time as new sources of rewards and an increase in the amount of protocol fees that are generated from non-emission-based sources further attracts more participants.

Related: Chainlink launches price feeds on Solana to provide data to DeFi developers

Proof of reserves

The new roadmap also introduces Chainlink Proof of Reserves (PoR).

#Chainlink Proof of Reserve (PoR) enables #DeFi projects to verify off-chain and cross-chain asset reserves through automated audits based on cryptographic truth.Learn how PoR helps secure cross-chain assets, stablecoins, wrapped tokens, and more https://t.co/qZRj7oExsz

— Chainlink (@chainlink) June 6, 2022

With PoR, the cryptocurrency holdings of a company can be easily audited through an automated process that leverages the transparency of blockchains, smart contracts and oracles.

This real-time auditing of collateral helps to ensure that user funds are protected from “unforeseen fractional reserve practices and other fraudulent activity from off-chain custodians.” In doing so, PoR helps to bring a higher degree of transparency to the crypto ecosystem as a whole and it addresses some of the biggest complaints about how the current financial system operates.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Markets
Ethereum
Altcoin Watch
Altcoin
Market Update
Cryptocurrencies
Defi
Chainlink
Proof-Of-Stake
Data
Data Exchange
Related Posts
OCEAN gains 86.4% in March ahead of Q2 launch of Ocean v4
Data security and accessibility have become important issues of the modern age as the world slowly progresses towards a Web3 future that establishes blockchain technology as the underlying infrastructure for the new internet. One project that is looking to capitalize on this growing trend by establishing tools for the new Web3 data economy is Ocean Protocol (OCEAN), a blockchain ecosystem that helps individuals and businesses unlock the value of their data and monetize it through the use of datatokens. Data from Cointelegraph Markets Pro and TradingView shows that, over the past two weeks, the price of OCEAN has rallied 86.4% …
Markets / March 21, 2022
The Graph (GRT) gains momentum as Web3 becomes the buzzword among techies
The ongoing digital revolution and rise of the internet have upended the old global value structure over the past 30 years, and big data has become the new "gold" or "oil" — a fact demonstrated by the money-making capabilities of platforms like Google and Facebook. One blockchain project focused on the future of retrieving and managing data is The Graph (GRT), an indexing protocol designed for querying networks like Ethereum and IPFS through the creation of open APIs called subgraphs. Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.34 on Jan. 24, GRT has …
Adoption / Feb. 16, 2022
Here’s why the growth of token staking could be bullish for Lido (LDO)
Liquid staking has grown in popularity over the past year, thanks, in part, to the launch of the Ethereum Beacon Chain and the inability of Ether (ETH) stakers to withdraw their tokens until the full launch of the consensus layer. As a result, Lido (LDO) has established itself as a leader in the liquid staking sector. Lido is one of the main staking protocols for several popular tokens and it allows token holders to earn an extra yield by putting their staked assets to work in decentralized finance (DeFi). Data from Cointelegraph Markets Pro and TradingView shows that the price …
Markets / April 26, 2022
Lido DAO price moves higher as the Ethereum Merge moves a step closer to completion
The upcoming Ethereum (ETH) Merge is one of the most talked-about developments in the cryptocurrency ecosystem as the world’s second-largest cryptocurrency by market cap undergoes the difficult transition from proof-of-work (PoW) to proof-of-stake (PoS). One protocol whose fate is largely tied to the successful completion of the Merge is Lido DAO (LDO), a liquid staking platform that allows users to tap into the value of their assets for use in decentralized finance and earn yield from staking. Data from Cointelegraph Markets Pro and TradingView shows that since LDO hit a low of $0.42 on June 30, its price has climbed …
Markets / July 11, 2022
Oracle-focused tokens rally as DeFi searches for trusted data providers
To the observant cryptocurrency enthusiast, the sight of multiple large-cap tokens more than tripling their value since November 2020 is a healthy sign that a bull market cycle is underway. Aside from a breakout in the price of Bitcoin (BTC), Ether (ETH) and altcoins, every bull market in the crypto sector is defined by one or two key themes that emerge as the driving force of market enthusiasm. In 2016-2017 there were ICOs, the growing popularity of collectibles like CryptoKitties and the widely held belief that blockchain was a solution to every problem in the world. In 2021 it’s clear …
Blockchain / Feb. 14, 2021