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CHAINLINK VS POLKADOT

The dogfight between the Altcoins is getting interesting every day as the investors around the globe are already fed up with the giant mammoth named Ethereum due to various reasons plaguing it. Some well-known issues like high gas fees to the tardy slow transaction speeds are some of the reasons why some new platforms are taking its. 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, which was created in 2014 by Sergey Nazarov, while its mainnet went live in mid-2019. Chainlink was one of those first cryptocurrency projects which enabled other Blockchains to have smart contracts using its “Decentralized Oracle Network”

Smart Contracts are such an important part of a Blockchain, that in layman’s language it lets all the different blockchains can 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, through Chainlink, the information from off chain data and the different blockchains can unite to create complex digital smart contracts. It is built on the Ethereum Bloackchain and it is 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. As, 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.

Polkadot was envisioned by Gavin Wood as New Ethereum to overcome this problem by their "parachains" or parallel chains, which are connecting Blockchains. Parachains function in parallel and communicate with each other. As of now, the project Polkadot is in development, and in the “Prechain Rollout” phase, but there are over 100 parachains over the network and they can compute up to 1 million transactions per second.

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

Now, another important part of Polkadot is Moonriver, as brings compatibility with the Ethereum Virtual Machine (EVM), it allows users to test their projects and have them verified with the creative power of the Ethereum network. In creating useful and powerful projects on the Polkadot network, Moonriver helps a lot.

How do Chainlink and Polkadot work?

It would be worth noting that both Polkadot and Chainlink are quite different in terms of functioning and they literally don’t compete with each other in any perspective. Both can succeed in their various business prospects without eating each other’s opportunities, in fact, 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.

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

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

Chainlink Advantages and Disadvantages

Advantages

  • A major advantage Chainlink network has is that it comes from its partnerships with large companies, like its developers since 2014 worked with Smart Contracts and Chainlink has a partnership with Google Cloud and other Blockchains.
  • Chainlink’s Oracles allow the building of bridges between various Blockchains and off-chain data sources too.
  • The Chainlink platform allows seamless connection to any API, where Chainlink can work with any Blockchain to integrate with real world data to create seamlessness.

Disadvantages

  • It is reported that around 60% of Chainlink supply is being controlled by its parent company.
  • In Chainlink’s network the number of Oracles is still limited, like in current there are almost 250 active Oracles over the platform.

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Polkadot Advantages and Disadvantages

Advantages

  • Almost every week we get to see a new project is announced on the Polkadot platform, this makes it one of the vibrant ecosystems having a major 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 makes use of the bridges via Parachains.
  • There is a great amount of popularity of Polkadot among institutional investors.

Disadvantages

  • As of now, there is a pretty high number of competitors before Polkadot like Cardano, Solana, Tezos which even includes some proof-of-stake Blockchain networks.
  • Over Polkadot the number of Parachains are limited and moreover, they are distributed in slots through auction.

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Is Polkadot better than Chainlink?

If you see as an investment, then the native token of both the projects are 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 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 too is having a major advantage, as in terms of data processing it can work wonders in linking complex fields of information through Smart Contracts.

Conclusion

As discussed above Chainlink is a complete ecosystem of numerous decentralized oracle networks running in parallel, whereas Polkadot is based upon the concept of co-existence and cooperation between various Blockchains.

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

Next Article

Blockchain in Financial Services

Frequently Asked Questions

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