Chainlink LINK Explained: Oracle Networks and Cross-Chain Infrastructure

[00:00:00]hey everyone we are filming on location in Indonesia care to guess where we are leave it in the comments down below today's topic is chain link probably the most used cryptocurrency that you probably didn't know and you know in terms of utility outside of let's say privacy coins and maybe ethereum chain link is definitely used much more than it is speculated upon for its price what do I mean by that I'm going to go over a few of the updates recently what it does for those of you who don't know what chain link is and why everyone wants to use it um and also what this means for the broader Market the traditional Financial Market digital currencies issued by governments around the world it all plays into this video this is not a sponsored video we do not offered sponsored content we don't we do not get paid to talk about cryptocurrencies if you don't believe me that's your problem uh that's just the facts here okay so let's get right into the most recent uh update for chain link is that they have partnered with dtcc which is a depository trust and Clearing Corporation they have their hands in everything to say the least but what does chain link have to do with this what are they doing with Swift and through that a number of huge Banking and other financial institutions we're going to be covering rwas which stands for real world Assets in a future video soon to come uh but what chain link is doing with the dtcc with Swift and these other huge traditional financial institutions is they are bringing real world assets and tokenizing them bringing them onto blockchain making them tokenized tokenizing the economy have we heard this phrase time and time again that's what rwas are that's what chain link is involved with again I'll do a much more in-depth video in the future but for now that's enough to know also I should make this note that chain link hasn't partnered directly with JP Morgan with Franklin Templeton and bny melon but they have what where is it hey guys if you find the ant let me know there's an ant cing on me we're in nature okay uh they haven't chain link hasn't directly partnered with the big Banks I just listed but they have made a pilot program with dtcc allowing ing these Banks to gain access with private blockchains public blockchains in order for them to transact in these rwas in a more efficient manner and again chain link is essential for this because of their ccip their cross chain interoperability protocol so what's happening is the traditional financial markets are seeing how quickly the Defi and the decentralized financial markets have developed the amount of money the efficiency the speed at which that they can transact and earn income uh and they want to get a piece of that pie now they're using their pilot project called smartnav to share fund prices and rates more efficiently because that's what blockchain does it removes the third party it makes it cheaper faster easier and more secure more verifiable the information that's being transferred as well pilot has been launched and it is being considered a success so they will be moving forward with this but the concerns here are as anything we got a monkey with a machine gun here we have the traditional financial markets with using now blockchain data blockchain technology I think they're probably going to be preferring to use a private blockchain to secure and transact their information it's not going to be publicly verifiable that we all know and love about Bitcoin ethereum and nearly every other cryptocurrency that exists so what are they going to do with that data how will they protect the Privacy probably won't at all and how much control will they be granting themselves over those tokenized assets that they will be presenting to their investors so why is chain link involved with this well first of all about a month ago they announced that they achieved General availability for their ccip again their cross-chain interoperability protocol chain link is helping Bridges be more secure more efficient blockchains that have some benefits and you want to trade it for and you want to connect you want to be the web connecting say ethereum and salana or whatever uh blockchains that you want to have cross chain interoperability with they have made it of course permissionless for you as a developer to make that connection happen and this is also of course applying to now Swift uh the dtcc and uh the traditional financial markets as well okay so enough about what the update is what is actually chain link as a reminder for those of you who maybe forgot about it it's been around for a while it is not a small cap coin it's ranked 17 on coin market cap it's got a $9 billion market cap so it's been around and it's being heavily used as I've already explained but what does it do chain link is a technology that connects blockchain data with real world assets and activity and information I'm just going to go ahead and read this off it is what allows blockchain applications to securely use external information like weather data prices and events chain link is what makes Smart contracts a lot more useful because they are what connects the real world data with uh the blockchain they're connecting the digital world and the physical world and also what chain link does is it ensures that this data is actually reliable and true through their use of a multiple different Oracles we're filming a chain link video now how do we know that the information that chain link is collecting and distributing in across all these different dii platforms and dexes is actually true how do they verify this information well they use a number of different Oracles and they aggregate what the oracles are are collecting and Reporting and so in that way they can verify that it's actually accurate against each other additionally of course these oracles are rated so this rating system encourages honest behavior and accurate reporting and we couldn't call it a cryptocurrency if it didn't use cryptographic proofs to ensure that the data is authentic and has not been tampered with so that is chain link in a nutshell so ccip doesn't just allow for token transfer from one blockchain to another cross-chain token transfer they also allow for programmable token transfers that means a a token transfer with even more data attached making it a more complex transaction use cases for this of course are cross-chain lending getting better rates we're seeing this a lot with already with duxes and like Dux aggregators like onein for example ET exchange is another one it also works to lower the transaction costs of different blockchains and maximizing the yield in different defi lending protocols because you can move from one chain to another whichever one is more advantageous also a quick recap of chain links 2.0 tokenomics there's a maximum supply of 1 billion tokens got to love that be uh ton of tokens but you can use you can actually stake your link tokens to help secure the network and earn rewards and when I say that staking helps secure the chain link Network it helps to ensure reliable data feeds if you want to use chain link of course you got to pay the fees and that is what is paying the uh the rewards of those who are staking link they're paid partially in the fees also other defi index protocols for example GMX they use chain link they've uh made a partnership with chain link so that GMX actually shares 1.2% of their trading fee uh earnings with the stakers of chain link as well so that's really cool and of course chain link is looking to expand upon this as well so could be uh pretty advantageous to be staking your chain link if you're holding it for long term again it's been around for a while it's getting used massively it is like by far the the least speculative cryptocurrency in my opinion just because of its utility being put in use today currently you're not speculating about the utility in the future you're not speculating about the price the price is doing okay uh but it is far from volatile it's far from manipulated at this point we'll see how that goes in the future full disclosure Toby and I do hold Shain link we have held it for many many years if you're a member of the CT Club you can find it at learning crypto.com you'll know our full cryptocurrency portfolio so if you're watching these videos and you're wondering I'm wondering if they hold these coins go ahead and join up and see for yourself now I mentioned before that the traditional financial markets and the big institutional Banks they want a piece of the pie they see what Defi and the de have been doing and they want that Innovation they want the speed the the efficiency and the profitability that can come from this type of Technology here's for example chain link in defi here's the stats $22 billion are currently secured by chain link used by over 350 dii protocols 42% of that comes from a but there's other big dii protocols that also use it for example spark compound synthetics GMX and dydx also paxos bitco Gemini and Trust token all use chain link for proof of reserves now there's a lot more about chain link and their uh and their compatibility with the traditional Financial Market their ability to provide services like proof of reserves uh cryptographic securing of transmitting the data in a secure way and all these things really lends itself to the traditional Financial Market because guess what they have to get regulat approval so if you're wondering what kind of assets are going to be made available to you if you are on the fence about joining defi or cryptocurrencies in general and you're just dipping your toe and you want to see what we're all about and you are interested in rwas you can invest in it now as a cryptocurrency investor there's plenty of rwa cryptocurrencies but if you want to stay in the safe fenced in Walled in traditional world of traditional finance and what has to you know Swift and and JP Morgan and Franklin Templeton what these guys have to offer keep in mind they are a decade late to the game not Innovative not on the bleeding edge of Technology you will be getting the scraps and the extremely water down version of what blockchain technology Toby is sick of it what blockchain technology can provide to you I will be doing a much more in-depth video of rwas the traditional Financial system what they're interested in Larry thinkink from Black Rock he's been saying from day one he wants to tokenize everything he is he's like bringing on the tokenized economy because he that's another flow of income for him and his business and his cronies so they are basically just slobbering over this but again that'll be in the video soon to come if you want to make sure not to miss it hit subscribe hit like if you appreciate videos like this if you find it to be informative I really appreciate that feedback let me know in the comments where in the world you think I am and uh also you can check us out on Twitter uh Toby is Sir cryptotips highly recommend now enjoy some of the beautiful nature and uh the clips that I filmed along our journey getting to this spot to film this video just for you we appreciate you guys those who subscribed enjoy the view bye guys [Music] hello so pretty