Chainlink launches staking to increase crypto security services
Chainlink launches staking to increase crypto security services
Blockchain

Chainlink launches staking to increase crypto security services

By Andrea Porcelli - 7 Dec 2022

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Stakers will earn LINK, Chainlink’s crypto, while participating in a decentralized alert system that flags the network when feeds fail to meet execution requirements. 

Chainlink wants to increase its economic security in the crypto ecosystem

Staking is part of the mechanism that some cryptocurrencies, specifically those based on the Proof of Stake protocol, leverage to verify executed transactions. This process also allows stakers to have rewards in the form of cryptocurrencies and to grow their wallets.

Chainlink‘s vision is for its stakers to earn LINK tokens through participation in a decentralized warning system that flags the network when feeds fail to meet execution requirements. 

The main goal revolves around the blockchain’s desire to focus on security and sustainable growth. This new feature is part of the “Chainlink Economics 2.0” efforts. With the newly launched staking mechanism, Chainlink token holders have an additional way to make money by helping to increase the security of the oracle platform.

“As the network continues to expand, Chainlink Staking will continue to evolve and provide enhanced security throughout our ecosystem and across Web3.”

This is what Sergey Nazarov, one of the founders of Chainlink, said. Co-founder Nazarov, sees the staking project as a launch pad for Chainlink Economics 2.0.

The ongoing release by the Chainlink team of Oracle services across the various blockchains required new support for network security. Sergey Nazarov, further explained that: 

“The Chainlink network has successfully grown to support a significant and growing portion of DeFi and many other new smart contract verticals, enabling more than $6.6 trillion in transaction value this year.”

Traders expect the launch of staking to increase demand for LINK tokens and the platform’s oracle services.

Chainlink up close: what is the blockchain all about?

Chainlink is a blockchain that enables communication between the crypto world and data from external sources. It does this by using a decentralized Oracle network that allows reliable and trusted data streams to be sent to other blockchains to enable actions to be performed by smart contracts.

The blockchain also works because of its native LINK crypto, which also turns out to be a potential asset to invest in over the medium and long term.

Chainlink greatly expands the capabilities of smart contracts by allowing access to real-world data to perform calculations outside of the blockchain, and provides this data in an understandable format ensuring reliability through its technology.

All companies using Chainlink can access major blockchains such as Ethereum, Solana and all others. Thus, we can call projects like Chainlink a kind of bridge between the decentralized world of blockchain and the traditional world.

Chainlink’s infrastructure offers a number of services: the decentralized network and the API (Application Programming Interface). The network uses a Chainlink Automation service that can automate many operations and reduce manual intervention. 

In addition, the solutions offered by Chainlink are time-tested, which has enabled it to protect the funds accessed by the most widely used decentralized applications in the crypto market

Although this Chainlink staking mechanism has yet to reach the preliminary stages of design (in late 2021), the potential of having drastic and exponential security measures would provide incredible value when the quality and reliability of the data provided by Oracle is critical to the optimal performance of Chainlink-based smart contracts.

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