Yesterday I talked about Oracles and why they are so important for Defi to work, so today I’ll be reviewing what is my favourite Oracle.

As I already mentioned, Chainlink is a oracle. In short, an oracle provides real world information to Smart contracts.

If that’s Chinese to you then definetly check out this article where I explain what Oracles are:

medium.com

A very important part in assesing a project’s worth is always to check it’s competition. As a project might look good at first, but then ends up being completely outshined by its opponents.

As you can see, Oracles is a rather small subsection of Crypto but Chainlink has managed to come out on top.

And honestly, all other Oracles might look good, but they just don’t have them same amount of adoption as Chainlink.

This is sadly enough one part where Chainlink isn’t quite as good as I hoped it would be.

Inflation clocks in at 13.5% which is far from the worst I’ve heard but would also ideally be a bit lower, sub 10% would be nice.

The vague wording is a bit unfortunate, especially with the part that goes to Founders & Project.

I assume that this part of the token supply is going to be used for paying staff and also for overall Ecosystem health, but I had preferred if they had included exactly how much goes to the staff as this is quite an important number.

One extra interesting thing with Chainlink is that it has a tendency to do a mini bull run when the overall market is going down.

For most of the time, Chainlink is correlated to Bitcoin as almost all other Altcoins. But at random times, in bear markets it suddenly decouples and goes for a small bull run, whithout any explanation why.

Apologies for the chart, it’s a bit messy.

So as you might notice, the two follow the same pattern for the biggest part.

In the first bull run at the start of 2021, we can see Bitcoin had a more parabolic run in the beginning and then stabilized round the 60K mark. Chainlink however needed a bit more time to get up and then had a final short but high run just before the Summer ’21 bear market.

Second thing I’d like to show you is the 50% Bull run it did in December 2021, even while all other Altcoins were going down.

They are still clearly highly correlated, but it is a nice extra and helps as some moral support in Bear markets. Just nice knowing at least something is going up in price.

Chainlink honestly just does what it’s supposed to, it proves it has real world use cases as it gets used a lot by Defi projects.

It’s the Biggest and Best oracle out there for me and apart from some minor Tokenomics problems, there really isn’t much negative to be said about it.

I currently have it in my portfolio and definetly intend on keeping it, as I believe everyone should have an Oracle in their portfolio.