As per a recent report, Bank of America (BofA) has shown great faith in Chainlink’s potential to drive future growth and adoption of blockchain technology.
Chainlink (LINK), a decentralised oracle network that facilitates the universal connection between smart contracts residing on different blockchain networks. It serves as a major off-chain information source for smart contracts, enabling them to become a usable form of digital agreement. The network currently has more than $60 billion worth of funds deposited in smart contracts.
As per a recent research report from Bank of America (BofA), the investment banking and financial services company believes that Chainlink will serve as a major driver for adoption of the next-gen blockchain tech across multiple sectors including gambling, gaming, insurance, finance and supply chain.
Chainlink on the forefront of DeFi growth
As per DeFiLlama, there’s over $207 billion total value locked in DeFi ecosystem at the time of writing, which is almost 300%+ year-on-year growth. BofA believes that a lot of credit for this goes to Chainlink oracle network, which serves as a bridge between the off-chain and on-chain financial ecosystem.
DeFi is a broad term used for all kinds of lending, borrowing, trading and other financial activities conducted through and on blockchain, without the involvement of any conventional middlemen or centralised systems.
The report highlights that as of Feb 15, 2022, Chainlink oracles had secured over $60 billion deposits into smart contracts, a phenomenal increase from $7 billion around 2020 year-end.
It further credited the “ability for hybrid smart contracts, or self-executing and tamper-proof digital agreements, to verifiably and securely access real-world data through oracle nodes like market prices, time of day, weather and GPS location,” for this significant growth.
BofA noted that currently there are more than 1,100 projects that use Chainlink’s oracle network, including the likes of Sportmonks, AccuWeather, Associated Press, and 800+ that have launched their own oracle nodes for monetizing their data.
The report also mentioned that it is oracles that will make next-generation of blockchain tech’s use cases possible. These implementations will inevitably need real-world data and as a result, Chainlink could end up disrupting even mature industries.
It is refreshing to see how Bank of America has always been notably bullish on the crypto industry, irrespective of the presumed conflict between conventional and decentralised finance ecosystems.
As of writing, LINK, the oracle network’s native token was trading at $15.25, ranked 23rd amongst top cryptocurrencies, based on market cap, with its own at $7.1 billion.