How much do you know about chainlink ? The largest Oracle project currently.

Let's start with some analysis about Chainlink Potential with CCIP and what is Oracle and CCIP ????

1. Oracle: ????

- Imagine each Blockchain as an isolated island, and these islands cannot access external data sources (they know nothing about the outside world). An Oracle acts as an intermediary to provide data to these Blockchains. Chainlink is the largest Oracle project, holding over 51% market share (according to Defillama).

1. Cross-chain bridge: ???? ⏩ ????

- Continuing with the analogy of Blockchains as isolated islands, for them to interact with each other, they need a bridge, known as a Cross-Chain Bridge. This bridge is used to transfer assets between different chains.

- Cross-chain bridges have been frequently targeted by hackers due to their vulnerabilities. Attacking a bridge is simpler than attacking an entire island since building a bridge requires the project to be written in multiple programming languages, making more spots for security vulnerability.

1. CCIP:

- CCIP is a solution introduced by Chainlink on July 17th. It replaces traditional Cross-Chain Bridges, enabling fast, secure, and cost-effective asset interactions between chains.

- Application: In a Cross-Chain Bridge scenario, to convert USDT on the BSC chain to QI tokens on the AVAX chain, one would need to transfer USDT from BSC to AVAX and then perform a swap from USDT to QI.

- With CCIP, only one transaction is required to convert USDT on BSC to QI on AVAX (saving time and cost).

- Additionally, borrowing and lending on multiple chains become possible. For instance, using USDT on the ERC chain to borrow ETH on the OP chain.

- All transactions incur fees paid in LINK tokens.

Summary:

- Oracle acts as an intermediary to provide data to Blockchains. For the crypto market to achieve mass adoption, oracles like Chainlink's (51% market share) are crucial.

- CCIP is a replacement for Cross-Chain Bridges, offering better and smoother asset interactions between chains (cheaper, faster, and safer). Using LINK as gas fees expands the use case for LINK.

1. Onchain data:

- LINK has been the most withdrawn token on centralized exchanges in the past month, with a net withdrawal of $123.7 million, accounting for approximately 23% of the current supply.

- Another noticeable on-chain: two whales 0x8b9 and 0x362 jointly swapped 3,146 stETH and ETH ($5.72M) to buy 788,877 LINK at an average price of $7.25 on July 20th. LINK price was skyrocketed by ~7% from $7.12 to $7.5 since their purchases. They are sure to act fast before the news hit! Source: Spot On Chain

1. Technical analysis:

- On the monthly chart, LINK had a very nice Hammer candle in June (suggesting that whales might have foreseen the news and started accumulating LINK). The expectation is that LINK will experience a strong recovery in the near future.

Source: Ryan và những người bạn

P/s: English sub by me