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Chainlink Vs Polkadot

CHAINLINK VS POLKADOT

The dogfight between the Altcoins is getting interesting every day as the global investors are already fed up with the giant mammoth Ethereum due to various reasons plaguing it. Some well-known issues, like high gas fees and the tardy slow transaction speeds, are why some new platforms are taking it. Out of them, Chainlink and Polkadot have become quite popular projects in the entire crypto ecosystem.

So, let's have a detailed look over both Chainlink and Polkadot in terms of how they fare against each other.

What is Chainlink?

Chainlink was launched in 2017 and created in 2014 by Sergey Nazarov, while its mainnet went live mid-2019. Chainlink was one of those first cryptocurrency projects which enabled other blockchain development services to have intelligent contracts using its "Decentralized Oracle Network '' Chainlink development has become popular in the Blockchain community with its architecture as a decentralized Oracle technology.

Smart Contracts are such an essential part of a Blockchain that, in layman's language, it lets all the different blockchains talk to and benefit from each other if certain conditions are met.

Blockchain can interact securely with different external data feeds, events, or payment methods through Chainlink. Also, the information from off-chain data and the other blockchains can unite through Chainlink to create complex digital smart contracts. It is built on the Ethereum blockchain and used to grab price data for Ethereum projects.

What is Polkadot?

Polkadot is a multi-chain agnostic blockchain technology that works to connect two different blockchain networks, thereby bridging the gap between them. A common issue in blockchain development is that two separate networks cannot interact directly; for example - you can't send Ether to a Bitcoin network, as they both function independently.

Gavin Wood envisioned Polkadot as New Ethereum to overcome this problem by their "parachains" or parallel chains connecting blockchains. Parachains function in parallel and communicate with each other. Currently, the project Polkadot is in development and in the "Prechain Rollout" phase. Still, over 100 parachains over the network can compute up to 1 million transactions per second.

The testing of Polkadot's software has been taken care of by Kusama - a project, as Polkadot's governance and NPoS systems have not been officially released. If we talk about Polkadot's release, Kusama is an integral part of it as it gives the developers feedback on the platform, and after its release, these two platforms will combine as one.

Another vital part of Polkadot is Moonriver, which brings compatibility with the Ethereum Virtual Machine (EVM). It allows users to test their projects and verify them with the creative power of the Ethereum network. In creating valuable and powerful projects on the Polkadot network, Moonriver helps a lot.

How do Chainlink and Polkadot work?

It would be worth noting that Polkadot and Chainlink are pretty different in terms of functioning, and they don't compete with each other in any perspective. Both can succeed in their various business prospects without eating each other's opportunities. Two can work in tandem with each other.

As the Polkadot network's favorite slogan is that it can operate and allow other blockchain registries to exchange data with one another.

Chainlink's vision, too, is much similar, as its fully decentralized Oracle network allows to connect Ethereum projects and other Ether-based tokens to let unrelated products and services make use of data housed in Ethereum's ecosystem. It had already been six months since Chainlink's decentralized Oracles started to connect with Polkadot's leading network. Thus providing more ways to build programs and services to developers around a combination of Chainlink and Polkadot functions.

In this way, we know that Chainlink is taking a servant role inside the world of Polkadot and other connected blockchain networks. Therefore, Polkadot operates on a more extensive and ambitious system than Chainlink.

Chainlink Advantages and Disadvantages

Advantages

  • A significant advantage Chainlink network has is that it comes from its partnerships with large companies, like its developers in 2014 who worked with Smart Contracts. Chainlink has a partnership with Google Cloud and other blockchain development companies.
  • Chainlink's Oracles also allow the building of bridges between blockchains and off-chain data sources.
  • The Chainlink platform allows seamless connection to any API, where Chainlink can work with any Blockchain to integrate with accurate world data to create seamlessness.

Disadvantages

  • It is reported that its parent company controls around 60% of Chainlink's supply.
  • In Chainlink's network, the number of Oracles is still limited current. There are almost 250 active Oracles over the platform.

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Polkadot Advantages and Disadvantages

Advantages

  • Almost every week, we see a new project announced on the Polkadot platform. This makes it one of the vibrant ecosystems having a significant advantage.
  • The issue of attracting a decent number of validators and miners to secure the chains are not required as developers build chains and applications for the Polkadot network with a shared security model.
  • The Substrate Modular framework in Polkadot enables developers with the flexibility to choose the particular component which is best suited for their app-specific chain.
  • To interconnect with other networks like Bitcoin or Ethereum Blockchain, Polkadot uses the bridges via Parachains.
  • There is a tremendous amount of popularity of Polkadot among institutional investors.

Disadvantages

  • Many competitors before Polkadot, like Cardano, Solana, and Tezos, even include blockchain networks.
  • Over Polkadot, the number of Parachains is limited, distributed in slots through auction.

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Is Polkadot better than Chainlink?

If you see it as an investment, then the native token of both the projects is promising, and even if you look at the day-to-day performance, there are not many differences between both. Still, when we look closely, there are some key differences; like Polkadot's market dominance has doubled in mere eight months, and it even found more grounding in the fund community like an Asian-based venture capital firm investing USD$30 million on the network.

If you see it as an investment, both Polkadot (DOT) and Chainlink (LINK) are promising, and even if you look at the day-to-day performance, there are not many differences between both, even though both are clean crypto. Still, when we look closely, there are some key differences; like Polkadot's market cap has doubled in mere eight months, and it even found more grounding in the fund community like an Asian-based venture capital firm investing $30 million on the network.

Now, this quietly tells us about the value Polkadot commands. No doubt, Chainlink also has a significant advantage, as in terms of data processing, it can work wonders in linking complex information fields through Smart Contracts.

Conclusion

As discussed above, Chainlink is a complete ecosystem of numerous decentralized oracle networks running in parallel. In contrast, Polkadot is based on coexistence and cooperation between various blockchain software development companies.

Polkadot and Chainlink do not aspire to scuttle each other's prospects. Still, they are working over different tangents. Big data is already dominating the world, and Chainlink has proved its worth in securing billions of dollars of value in the Decentralized Finance (DeFi) space. While Polkadot, on the other hand, fixes and works over the broader cases to fix some of the fundamental problems plaguing the crypto world and blockchain space.

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