Pros and Cons Of Chainlink
The chainlink cryptocurrency provides compatibility between ETH and Bitcoin but also allows payment services like banks to be included as well. This is only one of the benefits but let’s see more of the pros and cons of chainlink.
One of the main goals of chainlink is too decentralized smart contracts. This will increase the security of information as well as more accuracy. The SmartContract company that created chainlink has been engaged in contract automation since 2014. Also, the cooperation with big names like Oracle, Google cloud, and SWIFT brings even more confidence to the project.
The LINK tokens are a great investment tool because of their technological capabilities and the future goals of the project. The oracle network is the one that creates a trustless bridge between blockchains and the off-chain data sources which only provides a novel solution to the Oracle problem.
Chainlink is created to be used with any blockchain which results in a potential for many opportunities for integration. The platform is a first mover in the decentralized oracle network space and managed to establish many new partnerships with organizations like SWIFT, Binance, Polakdot, and Oracle as mentioned.
With smart contracts technology entering all systems, Chainlink could see more adoption and potential growth of the crypto industry as a whole.
However, let’s take a look at the disadvantages as well.
One of them is the few guarantees for the investors that the partnerships will belong. Also, Chainlink has a lower development speed and it is now known how long it will take for the cryptocurrency to implement a new real working solution that will affect the execution of financial transactions. There’s also no roadmap released that can guide the platform.
About 60% of the supply remains under the control of the parent company and there are no restrictions about the distribution of the node operation rewards. The oracle network is still quite limited and can be even more decentralized. Also, since Chainlink is built on Ethereum, all problems that ETH faces could bring trouble for Chainlink.
Chainlink is quite an interesting project which can link on-chain and off-chain information by providing users with easy access to the oracles and solves one of the main problems of the oracles- their reliability.
Its design is such that most problems have been so far resolved but it will be possible to improve this efficiency.