A Link in Google’s Chain? Chainlink Surges 71% on Cloud Oracle News
The decentralized oracle service, Chainlink, gained 71% in a flash spike on Thursday, fresh off reports that Google had “adopted” the blockchain project.
The truth is slightly less than the hype suggests, however it was still enough to pump the value of LINK tokens, and bodes well for the future of the blockchain space as a whole.
Google Is Testing with Blockchain Oracles
Thursday’s development report details Google’s experimental tinkerings with Ethereum – specifically testing how its dApps can interact with Google Cloud.
Chainlink appears to be one way of fostering that interaction, with its oracle system acting as the literal link in the chain between Google and Ethereum. As summed up by Google, the purpose of Thursday’s bombshell post was to:
“…demonstrate how a specific smart contract platform (Ethereum) can interoperate with our enterprise cloud data warehouse (BigQuery) via oracle middleware (Chainlink).”
Getting the three platforms to interact with each other isn’t the hard part. The goal is to create an automated system that can do everything on-chain, and by itself. This is why an oracle is needed.
With an oracle system in place, the Ethereum smart contracts can be updated automatically based on confirmed data coming down the blockchain. Those smart contracts may be tied to any number of functions, as they interact with the data housed on Google Cloud. Explained by Google:
“At a high level, Ethereum Dapps (i.e. smart contract applications) request data from Chainlink, which in turn retrieves data from a web service built with Google App Engine and BigQuery.”
Google notes that this system has the benefits of reducing inefficiencies, and even of opening up new use cases. From the post:
“This technique can be used to reduce inefficiencies… and in some cases add entirely new capabilities (hedging use case) to Ethereum smart contracts, enabling new on-chain business models to emerge (prediction markets use case).”
The hope is that Google’s successful demonstration of the Cloud-Oracle-App triumvirate will spur development, and stretch smart contract and cloud-based systems to their full potential. According to Google:
“We anticipate that this interoperability technique will lead developers to create hybrid applications that take the best of what smart contract platforms and cloud platforms have to offer.”
A boon for Chainlink, no doubt. But also a positive sign for the growing connections being made on a technological level between blockchain and big business.
Chainlink Price – LINK/USD
From the daily low of $1.13, the value of LINK tokens surged to $1.94 within the space of a couple of hours. That’s 71% gains in a flash, although the pullback carried the price back down to $1.79 at time of writing.
Binance proved to be the main hub for LINK trades when the price exploded, with over $160 million of LINK’s $250 million changeover coming from the Malta-based exchange.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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