LINK continues to rise after the revelation of Chainlink 2.0 improvements. Will the hype die down?
- Giving users the ability to stake LINK will increase its convenience and make it more secure through greater community involvement in network monitoring.
- The introduction of Chainlink Proof of Reserve (PoR) will further increase the transparency of the blockchain by auditing a company’s cryptocurrency holdings in real time.
- By further increasing the security and fraud prevention of blockchain technology, Chainlink will establish itself as a major player in the blockchain space for years to come.
LINK, the digital currency of Chainlink’s blockchain network, is on the upswing following the reveal of the Chainlink 2.0 roadmap, detailing improvements and new features coming to the blockchain in the near future. This roadmap shows that the network will allow LINK holders to earn passive income from their coins by staking them on the network. The blockchain also plans to implement a system whereby cryptocurrency holdings can be automatically audited to prevent fraud within the network. The Chainlink network is entering a new phase of life, and the hype around LINK is real.
Improvements to Chainlink
Chainlink has always been a major player in the blockchain space, enabling smart contracts to work effectively by providing essential off-chain information they need. For years, many have desired the ability to stake their LINK tokens on the blockchain, with LINK being one of the 20 largest cryptocurrencies in the world by market cap. This will serve to drive adoption of the Chainlink network, as well as increase the security of every transaction by involving more people in monitoring the community, further decentralizing the network. Chainlink is also implementing a Proof of Reserve (PoR), which will enable automated auditing of cryptocurrency holdings to reduce fraud. With the implementation of these new features in the blockchain network, LINK is growing.
The effects of Chainlink 2.0 on the market
Chainlink plays a vital role in the smart contract process, making it a very influential blockchain project. While many have praised the transparency and security of blockchain technology, this technology is still evolving and improving. Fraudulent transactions can still occur on blockchains. If Chainlink can use coin staking and PoR to increase the security of its network, and thus the security of the data it provides to smart contracts, Chainlink’s network could cement its critical role in the market. If this happens, it is likely that the value of LINK will not fall much. As it is, smart contracts are essential for many transactions on the blockchain. Unless a new system emerges to replace smart contracts, Chainlink’s services are likely to be needed for a long time.
The bottom line
As Chainlink improves with coin staking and Proof of Reserve features, it’s no wonder investors jump on the bandwagon and increase the value of LINK. If Chainlink’s improvements actually increase the security of the network and reduce fraudulent transactions on the blockchain, this network could establish itself as a major player in the blockchain space for the foreseeable future.
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