As the crypto markets are slowly settling down from all the crypto market crashes it has been encountering, various crypto project are looking forward to the next step of theirs in the Web3 world. One such project is the blockchain oracle service, Chainlink. The network has launched its staking feature as a step towards helping them in increasing the economic security of the platform’s oracle services.
Staking represents a new era of cryptoeconomic security for the #Chainlink Network.
By staking LINK tokens, you can help increase the security guarantees of oracle services and earn rewards in return.
Start staking: https://t.co/nOhbTwLWTB pic.twitter.com/SU6n4SUd6v
— Chainlink (@chainlink) December 6, 2022
What is Chainlink Staking?
For Chainlink, staking is a key mechanism that strives to carry a new layer of crypto economic security within the network and its services. By staking, the Chainlink ecosystem participants gets an opportunity to earn rewards as a result of increasing the security assurances and user warranties of oracle services by backing them with staked LINK tokens. Chainlink Staking has initially been launched as v0.1 and it is set to evolve alongside the growing adoption of the network.
Chainlink Staking pool aims to secure the ETH/USD data feed within the Ethereum mainnet. The services required for this allows the stakers to earn rewards for supporting the feed’s performance by taking part in a decentralized alerting system. The system alerts the network when the data feed is not fulfilling the performance necessities.
#Chainlink Staking v0.1 Early Access is now live on Ethereum mainnet!
The initial 25M staking pool is available for early access, so stake your LINK today to secure your spot and earn rewards for securing the Chainlink Network & larger #Web3 ecosystem👇https://t.co/Ee65mcHHPX
— Chainlink (@chainlink) December 6, 2022
The co-founder of Chainlink, Sergey Nazarov commented that the launch of the staking services is the foundation for Chainlink Economics 2.0 and is eventually set to improve further. According to the Cointelegraph report, he said, “As the network continues to expand, Chainlink Staking will continue to evolve and deliver enhanced security across our ecosystem and throughout Web3.”
Read more: Chainlink Price Prediction
With so many improvements being set up within the Chainlink network, the Chainlink team has shared their thoughts on effort that is needed for the platform to continue its new oracle services throughout various blockchains. Apart from that there is the heightened security measures that the network must match in order to keep up with the increasing value secured within the various applications powered by Chainlink. Nazarov explained that “The Chainlink network has successfully scaled to support a significant and growing portion of DeFi and many other new smart contract verticals, enabling more than $6.6 trillion in transaction value this year.”
Source: Chainlink
In an interview, Sergey Nazarov said, “What staking does is it allows us to scale the system by creating incentives that allow the system to grow.” Setting up the staking services is only establishing the foundation for what the company anoints as Economics 2.0. This is one step towards the vision of the network, which is necessary for the protocol to scale and become more efficient by providing the right incentives.
Read more: Top Performing Altcoins of 2023
Source: Cointelegraph
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