With the successful completion of the first Kusama Parachain Slot Auction, connecting parachains with the Kusama relay chain, the Polkadot project has achieved the final core functionality described in its white paper.
Arame has announced its whitepaper that Arame 2.0 will take you further along the path to innovating decentralized hybrid web-smart contracts.
In this article, we will discuss:
What are Chainlink and Polkadot?
Founded in 2016, Polkadot is the brainchild of Ethereum co-founder Gavin Wood. It aims to support the decentralization of the web and solve the problems of the original Ethereum project.
Chainlink, founded in 2017, is an Oracle-based network created to facilitate smart contracts. It allows developers to connect any blockchain with real-world data. Chainlink is built on the Ethereum blockchain.
Polkadot and Chainlink each have a native token known as DOT and LINK , respectively. LINK is an ERC-20 token that follows the same technical standard as Ethereum. DOT, the native token of the Polkadot platform, is used for platform governance, staking, and parachain bonding.
DOT and LINK had a positive variation in their respective prices against the dollar from January 1st to the beginning of July 2021, with increases of 61,87% and $62,07, respectively.
How do Polkadot and Chainlink work?
Marcus de Maria, Founder and CEO of Investment Mastery, explained the underlying principle of the Polkadot and Chainlink projects. They share a common goal of facilitating blockchain interoperability and interaction.
According to de Maria, the blockchain space is still expected to expand enormously in the coming months and in the long term. Due to this growth potential, the market is large enough to accommodate multiple players.
Interoperability is a fundamental requirement for the fastest growing market. Polkadot and Chainlink can play important roles.
Despite having a similar goal, Polkadot and Chainlink operate differently. To solve the blockchain scalability problem, Polkadot allows for a continuous flow of information between parachains. Chainlink, on the other hand, allows blockchains to communicate with a variety of external data sets and payment procedures while maintaining confidentiality.
Advantages and Disadvantages of Polkadot vs Chainlink
Advantages of Polkadot
One of Polkadot's main advantages is its extremely vibrant ecosystem. New projects are announced on the Polkadot platform almost every week. As of July 6, 2021, the total number of Polkadots projects was 468.
According to CryptoEQ, the project has several strengths:
- Developers build chains and applications for the framework with a shared security model, which eliminates the problem of attracting enough validators and miners to secure the chains.
- Polkadot's modular substrate structure gives developers the flexibility to choose specific components that best fit the specific application chain.
- Polkadot parachains allow the use of bridges to interconnect with other networks, for example, ethereum and bitcoin.
- Polkadot gains popularity among institutional investors.
According to Keld van Schreven, the founder of leading European blockchain and digital asset companies KR1:
We are seeing talent being transferred to Polkadot, which would be based on Ethereum. This is very exciting. And I think it's going to be one of the winners in the next few years, and then it's going to last maybe 100 years.
Polkadot is integrating with other networks, including Chainlink. Integration allows multiple smart contract applications across the Polkadot network to obtain up-to-date, accurate, tamper-proof price reference data to power new products.
Disadvantages of Polkadot
- Polkadot has many rivals, including other betting proof blockchain networks such as Cardano, Tezos and Cosmos.
- The number of available parachains is limited and slots are distributed by auction, which may not be suitable for all use cases.
Advantages of Chainlink
One of Chainlink's strengths comes from its partnerships with large companies. For example, Chainlink developers have worked with SmartContract, which has served the contract automation industry since 2014. Chainlink has partnership agreements with Google Cloud, SWIFT and other blockchains such as Polkadot and Binance.
According to CryptoEQ, Chainlink has several important advantages:
Chainlink Oracles allow you to build bridges between blockchains and data sources outside the chain. According to the company's corporate blog:
Following this approach, Chainlink Network provides a generalized framework for creating oracle networks that can meet any design specification required by smart contract applications.
The platform offers seamless connection to any API, which means Chainlink can work with any blockchain. This opens up many opportunities for integration.
Disadvantages of the chain link
About 60% of Chainlink's supply is controlled by its parent company.
The number of oracles on the Chainlink network is still limited. As of July 6, 2021, there were 250 active oracles available on the platform.
Chainlink and Polkadot news and highlights
Chainlink News
On June 16, 2021, Chainlink announced registration for the Summer 2021 Smart Contract Developer Bootcamp, offering free blockchain developer training for building Ethereum-based Solidity Smart Contracts.
Weathsimple, a Canadian-based investment management service, announced on June 23, 2021 that it supports LINK on its native trading platform and 11 other cryptocurrencies.
Chainlink Labs, the company that owns and operates Chainlink, was ranked number one company by FlexJobs when it comes to hiring employees for remote work. FlexJobs' announcement came on June 25, 2021.
Polkadot News
On June 29, 2021, Revolut, a UK-based fintech company with over 15 million users, announced a partnership with Polkadot, which allows the DOT token to be listed in its app.
Coinbase , a popular cryptocurrency trading platform, made Polkadot available on its platform as of June 17, 2021. The Coinbase blog notes: “Polkadot (DOT) is available on Coinbase.com and the Coinbase Android and iOS apps. Coinbase customers can now trade, send, receive or store DOTs in regions supported by Coinbase, with the exception of Singapore. ”
Technical Analysis: Is Polkadot better than Chainlink?
According to CoinMarketCap, the current DOT price is $15,45 (as of July 6), with a market capitalization of $14,7 billion and a total supply of 1,01 billion tokens.
Monthly moving averages, according to investing.com, provide 8 buy and four sell signals for the DOT. In addition, a summary of technical indicators suggests three buy recommendations with two sell signals.
Polkadot also experienced a sharp rise during the first half of June 2021, when news of his parachain auction reached the cryptographic community. Keith Bliss, president of Capital2Market, said in an interview with Business Insider that the DOT could achieve an astonishing growth of over 500% over the next three years. This positive news helped the DOT climb to $49,69 on May 15, 2021, from $29,73 on April 25, 2021.
On the other hand, LINK is trading at $19,26 (as of July 6), with a total market capitalization of about $8,4 billion and a total supply of 1 billion tokens, according to to CoinMarketCap. The current price is 17% higher than the 30-day low of $15,26 and 44% lower than the 30-day high of $32,64.
Investing.com provides a monthly bullish sentiment for LINK, with eight buy and four sell signals, according to moving average analysis. The summary of technical indicators suggests a sell recommendation, with four sell signals and three buy signals.
Just before the release of the Chainlink 2.0 article on April 15, 2021, LINK soared from $31,3 on April 4, 2021 to $43,38 on April 15, 2021. Encouraging news, along with recent integrations from Chainlink, may lead to a positive outlook for investors in the coming months.
Polkadot & Chainlink Price Forecast 2021-2025
Algorithm-based price forecasting platforms such as Wallet Investor, DigitalCoin, and TradingBeasts are optimistic about DOT and LINK price trends from 2021 to 2025. However, the trend is higher for DOT than LINK on all three cases.
According to DigitalCoin, the price of DOT will increase by 203% until December 2025 and the price of LINK 195%.
These price predictions are based on current supply and demand, and forecasting algorithms cannot predict market volatility and collapses. It is essential to conduct your own research and not rely on price projections.
According to Katherine Wooler, managing director of Dacxi, investors looking for “clean encryption” will like both DOT and LINK because of their future prospects and growth potential.
Polkadot vs Chainlink vs Uniswap
Another player to watch in DeFi space is Uniswap. Developed by Hayden Adams, Uniswap is a DeFi protocol, which aims to facilitate the automated exchange of cryptocurrencies through smart contracts. It has gained over 300% in the last 6 months, currently trading at $21,62 (as of July 6, 2021).
Should you invest in Polkadot or Chainlink?
O cryptocurrency market looks slightly bullish based on recent price movements. Bitcoin (BTC) and other cryptocurrencies such as ether (ETH) and Cardano (ADA) rallied after a month of losses. However, any significant incident of liquidation could lead to price declines. When it comes to cryptocurrencies, it is advisable to proceed with caution.
Contracts for Difference ( CFDs ) allow you to speculate on the volatility of Polkadot ( DOT ) and Chainlink ( LINK ) prices. CFDs allow you to trade long or short without actually holding any currency. For example, if you believe the price will go up, you can go long. You can go short if you think the price will drop. You can profit from any price change, whether positive or negative.
