The cryptocurrency industry is developing at a rapid pace, at the moment, there are more than 22 thousand digital coins on the market, according to the data of the analytical resource Coinmarketcap. However, just a small part of them have such a function as connecting oracles. Perhaps the most popular in this area is Сhainlink oracle.
In this article, we will discuss what it is, compare API3 vs Chainlink and understand what prospects this direction has.
What is Chainlink Oracle?
In early 2021, the developers published a white paper called Chainlink 2.0. They focused on the development of smart hybrid contracts, as well as the use of Chainlink oracles to explore other opportunities on the network. The main feature of hybrid smart contracts is the combination of code running on the blockchain with data and calculations outside of it. If you look at the Chain link cryptocurrency price, you can see that the coin is popular among investors.
Developer plans for the future:
launch of the CCIP cross-chain compatibility protocol;
deeper integration of oracles.
The CCIP protocol is a global standard for data exchange and communication between blockchains. CCIP is designed to fulfill the task that TCP/IP has performed for the Internet - to create a single “Internet of Blockchains”.
Chainlink vs API3
If considered superficially, one might think that these two projects do not have any fundamental differences from each other. But this is only at first glance.
The fact is that the Chainlink data flow receives information using different oracle nodes but then structures them into a single database, which is directly delivered to smart contracts. The principle of API3 is the same, but it is much more decentralized than Chainlink oracles.
It is important to note that the vast majority of oracles are managed by third parties. The Chainlink team has been less flattering about the API3 project in the past. According to the developers of Chainlink, API3 uses infrastructure provider Infura. But API3 countered this by stating that they rely on multiple infrastructure providers simultaneously.
Where to Buy ChainLink?
As mentioned above, Chainlink is a fairly popular project, so LINK tokens can be found on almost any major centralized exchange. If you have not yet decided on a trading platform, then join the community of the largest crypto exchange in Europe - WhiteBIT. The LINK token is one of the few projects working on oracles, which is its main potential.