Chainlink Can Drive Mainstream Adoption Of Blockchain: BOfA

Chainlink can drive mainstream adoption of blockchain technology according to the Bank of America spokesperson and they say that the potential lies in using the oracle data so let’s read further in today’s latest Chainlink news.

Chainlink is a blockchain oracle service provider with over $60 billion deposited into smart contracts and the recent analysis from Bank of America claims that the network will drive blockchain adoption into the gambling, gaming, and insurance industries among others. According to a report released recently, the company believes that chainlink is now a strogn driver behind the growing total value locked in DEFI and according to DEFI Llama there are over $205 billion locked into DeFi which is up by 300% year over year.

DeFi refers to the provision of financial services like borrowing, lending, and insurance through blockchain0based smart contract systems rather than through traditional centralized systems such as banks. Chainlink is built atop Ethereum and it is now the leading blockchain for DEFI and holds $121 billion TVL. Chainlink can drive mainstream adoption of blockchain technology because of its oracles, devices that connect on-chain and off-chain data. This allows smart contracts to execute based on the inputs from the real world rather than only blockchain-native variables. Its growth was quite exponential last year and scaled up from $7 billion in TVL at the end of 2020.

The report credits the ability for hybrid smart contracts or self-executing and tamper-proof digital agreements to securely access real-world data via oracle nodes such as market prices, GPS location, and weather for the DeFi growth. The analysts also stated that oracles enable the next generation of blockchain use cases and could disrupt major industries. Major companies such as the Associated Press and AccuWeather are using the Chainlink blockchain and monetizing their data by providing it to smart contract developers with more than 100 projects being live on the network.

The blockchain native token LINK is the 22^nd most valuable crypto by market cap and totaled over $7.5 billion while the network partnered with Cardano to integrate oracle data into the smart contracts. Despite the conflict with banks, Bank of America has always been bullish on crypto. The institution noted that crypto was too big to ignore which was a sharp change of attitude from the previous stance in March 2021 where it deemed BTC too volatile and impractical as a store of value. The institution seems more interested in the broader crypto ecosystem and the blockchain technology as a whole, according to one statement issued recently:

 “Bitcoin is important, but the digital asset ecosystem is so much more.”