2022 could be a colossal year for Chainlink. In a 2022 kickoff video discussing Chainlink, Sergey Nazarov announced that staking is incoming! Covered Staking Is Coming To Chainlink In 2022 Upcoming Launches For Chainlink In 2022: Very Bullish Staking Is Coming To Chainlink In 2022 Sergey Nazarov, the co-founder of Chainlink, announced in his 2022 […] The post Staking Is Coming To Chainlink In 2022 appeared first on CryptosRus.

Staking Is Coming To Chainlink In 2022

2022 could be a colossal year for Chainlink. In a 2022 kickoff video discussing Chainlink, Sergey Nazarov announced that staking is incoming!

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  • Staking Is Coming To Chainlink In 2022
  • Upcoming Launches For Chainlink In 2022: Very Bullish

Staking Is Coming To Chainlink In 2022

Sergey Nazarov, the co-founder of Chainlink, announced in his 2022 kickoff presentation that Chainlink will be launching staking this year.

Chainlink announced the role of explicit staking in Decentralized Oracle Networks (DONs) in July of 2021. Because multiple Chainlink oracle networks are now profitable, Sergey thinks that 2022 is the right time to launch $LINK staking.

Chainlink staking is different than staking within blockchain networks. This is because the explicit staking mechanism aims to complete a fundamentally different goal, as explained here:

“While Proof-of-Stake blockchains use a staking mechanism to generate global consensus on a set of transactions ordered into continuously created blocks, explicit staking in Chainlink 2.0 aims to achieve the creation of reliable and tamper-resistant oracle reports that accurately reflect the state of specific real-world events outside a blockchain (off-chain).”

Overall, the unique explicit staking in Chainlink 2.0 is to increase the cryptoeconomic security of DONs, which gives users greater guarantees about the validity and timeliness that their hybrid smart contracts rely on (e.g., external data and off-chain computations).

The chainlink 2.0 whitepaper discusses how explicit staking will secure DONs, but here’s an overview. The explicit staking will use service agreements behind each DON to define the number of $LINK tokens each oracle node is required to stake and key performance requirements.  Two-tiered oracle networks will ensure that the service agreements are adequately fulfilled. Basically, a first-tier DON is made up of nodes that explicitly stake $LINK and take on the responsibility of generating new oracle reports regularly. While the second tier is a maximum security and higher cost DON that will be used to settle disputes regarding the validity of the first tier DON. This “watchdog report system” drives reward concentration, resulting in a super-linear growth rate.

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Upcoming Launches For Chainlink In 2022

Sergey Nazarov anticipates two other initiatives will launch in 2022 that will make the fundamentals of Chainlink outperform any other oracle network out there.

We can be hopeful that Chainlink will be able to launch the Cross-Chain Interoperability Protocol (CCIP). The CCIP will be a new open-source standard for cross-chain communication and allow for a universal connection between hundreds of private and public blockchains, empowering cross-chain applications for on-chain ecosystems. Overall, the CCIP is an infrastructure for smart contract developers that enables transferring data and smart contract commands across blockchain networks.

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Another initiative that Sergey talked about in his 2022 kickoff video was being able to use Chainlink as a blockchain abstraction layer. Which allows the following “Securely connect existing systems to any private or public blockchain and tap into the value of the smart contract economy.”

Enterprises using Chainlink as a blockchain abstraction layer will be able to gain access to the blockchain economy. Essentially, an enterprise would be able to connect to the backend of the Chainlink system to any blockchain through a single integration. This could be beneficial for enterprises that want to generate revenue by operating a critical smart contract infrastructure.

If all three of these initiatives (explicit staking, CCIP, and the blockchain abstraction layer) come to fruition, then it will be a colossal year for $LINK.

Recommended: What is Chainlink?

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