The cryptocurrency market dominated by three key technologies
The cryptocurrency market has been dominated by three key technologies in recent years: crypto, perpetual and crosschain bridges, as well as Chainink (link). These technologies have played a crucial role in shaping the direction of the industry.
Crypto, short for cryptocurrency, refers to digital currencies that are decentralized, which means that it exists on a decentralized network, rather than being controlled by any central authority. Bitcoin and Ethereum are two of the most prominent cryptocurrency, but many other projects gain and traction. The growth of the crypto was determined by the increasing adoption of blockchain technology, which allows safe and transparent transactions.
Perpetually, short for perpetual contract, is a type of intelligent contract that allows the automatic trading of decentralized exchanges (DEXS). Perpetual contracts allow users to establish price limits and block profits or losses, which makes cryptocurrency trade more easily without the need for intermediaries. The use of perpetual contracts has contributed to the creation of liquidity on DEX, which became a key platform for cryptocurrency trading.
Crosschain bridges, short for transverse chain bridges, are protocols that allow perfect communication between different blockchain networks. These bridges allow users to transfer active chains, which makes buying, sells and sells cryptocurrencies. Crosschain bridges are particularly useful for decentralized (Defi) finance projects, which often require the ability to transfer active to different blockchain.
Chainlink (Link), short for the Chainlink network, is a decentralized Oracle network that provides the real world of smart contracts. Chainlink’s Oracles allow users to access data from external sources, such as news items, weather forecasts and sensor readings, without having to store the data locally on the blockchain. This allows smart contracts to make known decisions based on real world data, rather than based only on internal data.
The integration of these three technologies has created a robust ecosystem that allows perfect communication between different blockchain networks. The use of perpetual contracts has contributed to increasing liquidity on DEX, while Crosschain bridges allowed the creation of new decentralized applications (DAPP) and protocols.
Chainlink’s intelligent oracle offers data from the real world of intelligent contracts, allowing them to make the knowledge based on external information. This was especially useful for Defi projects, which often require access to external data to correctly perform their functions.
The growth of crypto, perpetual contracts and Crosschain bridges created a market dominated by three key technologies. These technologies have played a crucial role in shaping the direction of the industry, allowing perfect communication between different blockchain networks and providing data from the real world to smart contracts. As the ecosystem continues to evolve, it will be interesting to see how these technologies continue to model the future of cryptocurrency.
Key Statistics:
- Crypto market capitalization: $ 1.7 trillion (source: coinmarketcap)
- DEXs registered a 50% increase in liquidity since the introduction of perpetual contracts (source: dex.io)
- Oracle Chainlink were accessed by over 10,000 projects in different blockchain networks (source: chainlink)
- Crosschain Bridges allowed the creation of new DAPPs and protocols, with a total blocked value (TVL) of $ 1.3 billion (source: chainbase)
Recommendations:
- DEXs should give priority to the use of perpetual contracts to increase liquidity and reduce taxes.
- Oracles users Chainlink should ensure that their smart contracts are regularly updated to reflect external data changes.