Passive income opportunities are one of the biggest benefits in the cryptocurrency ecosystem because they give investors an easy opportunity to grow their portfolio size regardless of day-to-day price movement.
The latest token that has risen in price since the announcement of the upcoming staking implementation is Chainlink (LINK), a decentralized oracle network that provides critical off-chain information required for smart contracts to function properly.
Data from Cryptooshala Markets Pro and trade view shows that since bouncing from the low of $6.67 on June 4, the price of LINK has risen by 35% and hit a daily high of $9.00 on June 7.
Here’s a look at what new developments in the Chainlink ecosystem could fuel today’s price rally.
Staking LINK has been in the making for years
The ability to stake LINK has been in demand for several years now because Chainlink is consistently the largest oracle project in the entire cryptocurrency ecosystem.
The bet marks the beginning #Chain link Economy 2.0, a new era of long-term security and resilience for Oracle networks.
In this update, we define the long-term goals, roadmap, and initial implementation of staking on the Chainlink network.https://t.co/WJkoUzPA0i
— Chainlink (@chainlink) June 7, 2022
According to an announcement published by Chainlink, the main purpose of staking on the network “is to give ecosystem participants, including node operators and community members, the opportunity to increase the security guarantees and guarantees of users of oracle services by backing them with staked LINK tokens. “.
By staking LINK, the ability of nodes to earn jobs and earn commissions on the Chainlink network will be enhanced, while the ecosystem as a whole will benefit from “increased crypto-economic security and user guarantees.”
Staking not only introduces an incentive to provide reliable data, but also allows for a punishment mechanism for inefficient nodes that fail to achieve the goal of consistently generating accurate oracle reports and delivering them to specific destinations on time.
Greater Community Involvement
Another benefit of implementing staking is that it will help encourage more members of the Chainlink community to directly participate in the network by hosting LINKs to support the performance of oracle networks.
Getting more people to directly participate in community monitoring helps increase the decentralization of the Chainlink network and provides a “robust reputation system and reduction mechanism.”
The addition of staking is expected to increase the popularity of the network over time as new reward sources and an increase in the amount of protocol fees generated from non-issuance-based sources further attract more participants.
Chainlink Launches Price Feeds on Solana to Provide Data to DeFi Developers
Confirmation of reserves
The new roadmap also introduces Chainlink Proof of Reserves (PoR).
Learn how PoR helps secure cross-chain assets, stablecoins, packaged tokens, and more. https://t.co/qZRj7oExsz
— Chainlink (@chainlink) June 6, 2022
With PoR, a company’s cryptocurrency assets can be easily verified through an automated process that leverages the transparency of blockchains, smart contracts, and oracles.
This real-time collateral audit helps ensure that user funds are protected from “unforeseen fractional reserve practices and other fraudulent activities by offline custodians.” In doing so, PoR helps increase the transparency of the crypto ecosystem as a whole and eliminates some of the biggest complaints about how the current financial system works.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cryptooshala.com. Every investment and trading step involves risk, you should do your own research when making a decision.
Credit : cointelegraph.com