Could Chainlink Become Central to Ethereum's DeFi Ecosystem?
It seems that Chainlink is becoming more and more important to Ethereum's DeFi (decentralized finance) ecosystem. The oracle which links trusted data from the internet to the blockchain keeps on adding nodes and partners. Over 7, including BetProtocol and Conflux were onboarded since the start of the new year and the list is very long.
The sheer number of node operators has pushed Chainlink to become the 2nd largest consumer of gas in the Ethereum ecosystem after Tether. While Chainlink reached that spot sometime in the summer of 2019, it appears to be growing and could hypothetically overtake Tether in the future.
The data seems to show that the node providers are consuming an ever-growing amount of gas. This will grow with every new node operator onboarded in the future.
Many new stablecoins are now threatening Tether's dominance. Binance launched BUSD, Huobi rolled out HUSD, Gemini has had the Gemini Dollar for quite a while and more stablecoins are being released.
Additionally, Tether has branched out from being only on the Ethereum blockchain to many other blockchains. This includes Liquid-Tether, TRON-based Tether and EOS-based Tether to name a few. This could greatly lower Tether's gas consumption in the future.
Hypothetically, we could see Chainlink overcome Tether in gas consumption within a year or two although that depends on the highly volatile crypto markets.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado