I have to be honest I have a love-hate relationship with Chainlink and for the most part, it's not their fault. I am not a fan of a single company or project becoming all-powerful and really that is what has happened with Chainlink and the DeFi space. However, they have a good product, and it's what got them to this point so it's a catch 22 and something that I expect to see new projects address. One thing that I have to give them credit for is that they have not just taken this big lead they have and stood pat. Instead, they continue to innovate and create new applications for their project. Last year they announced a huge overhaul of their entire network called Chainlink 2.0 really showing that they were entering an entirely new phase as an organization and information provider.

What is Chainlink 2.0

Chainlink 1.0 gave rise to a critical thing that many DeFi users might not be aware of and that is the very first DONs or Decentralized Oracle Networks. These networks are what relayed the critical data that the DeFi application needs to be able to function and thus work for the users! Without this data, there would not be DeFi as it would be impossible to bridge the data from the different applications! An important thing to note is that Chainlink 2.0 is very similar to what the next generation of Ethereum (formerly known as ETH 2.0). Rather than all of the updates occurring at once via a fork, it is going to take multiple upgrades over the next few years to complete. When looking at what these upgrades will entitle Chainlink has announced the 7 main pillars of technical advancement that are going to take place.  These pillars are hybrid smart contracts, scaling, abstracting away complexity, confidentiality, order fairness, trust-minimization, and cryptoeconomic security. 

What is the goal of Chainlink 2.0

The goal of Chainlink 2.0 is rather easy and straightforward. Utilizing the DONs brought to us by version 1.0 in version 2.0 will foster the creation of an abstract layer of DONs. This layer of DONs will bring about a universe of services and capabilities not yet seen and importantly make hybrid smart contracts efficient, secure, and easy to build.    

The Seven Pillars Role 

The creation, implementation, and execution of the seven pillars of Chainlink 2.0 will ultimately decide if it is successful or not. All of these pillars are needed for the successful deployment of version 2.0 and I personally do not see how it can be done without it. These pillars cover from the basics in hybrid smart contracts and scaling to getting rid of some of the complexity faced by developers and maintaining security throughout the process.  

The Seven Pillars 

Hybrid Smart Contacts

This is by far the golden goose of this upgrade! A hybrid smart contract is an amazing feat that combines both on-chain and off-chain computing resources. By doing this the load or computing power needed overall is less and thus lessening the "load" on the blockchain that the hybrid contract is being executed on. 

Scaling

Scaling is something we often now hear about and many argue is the biggest issue standing in the way of widespread adaptation. Issues with scaling have led to huge increases in gas fees on networks like Ethereum and even other networks like ADA and Polygon. Chainlink wants to increase its scaling while decreasing the amount of computing that goes along with it and if they are able to do this it will benefit anyone who uses their price oracles. Creating not only accurate but low-load price feeds will be huge if they can pull it off!

Abstracting Away Complexity

This is one that I was really interested to see included. As someone who does not know coding really at all besides some basics on Python, this caught my eye. The goal here is to be able to combine and "dumb down" the complexity of coding to spur additional development in the space. I would also argue that by making it simpler more people will be able to engage in this area as it will not require a super high-tech skill set. By bringing in more people you will thus spur adoption for the masses!

Confidentiality

This one pretty much explains itself as more and more people use blockchain and thus more and more data is uploaded onto them maintaining security and confidentiality. While blockchain and DeFi usage has continued to grow the last few years so has cybercrime associated with the industry so maintaining security is vital for Chainlink and any project going forward. 

Order Fairness

DeFi just flat out depends on decentralization. This depends on an equal playing field when it comes to data and the bigger players not being able to bully their way to the front of the line. That is what this pillar is determined to make sure does not happen. By allowing all of the data to flow fairly it will prevent bad actors from funneling the data first to one location or Dapp before others. I am of the belief that people will probably always try and test the system to get that split-second advantage and so this will be something that has to be consistently monitored and dealt with as the space continues to develop. 

Trust-Minimization

Creating a layer of trustworthy support for smart contracts to branch off is key. While they have that layer now that layer is going to be replaced by the network of DONs that interact and link up with each other. This new layer is where they need to maintain the trustworthiness that they have already established. Creating this new layer and maintaining it will allow for additional developments in the space due to not having to worry about trustworthiness and thus making its trustless feature. 

Cryptoeconomic Security 

This pillar I believe really encompasses most of the ones mentioned above. That is to create a secure, decentralized, and fair oracle system. Without this DeFi is not really decentralized as it is going to be exploited and used against others. This pillar I do not see an endpoint forever. There will always be security patches that will be needed and places where additional security will/would be beneficial. It is important that there is continued growth here and hence the reason why they have it as a pillar. 

Final Thoughts

As we have seen with every single blockchain and application updates are critical to remaining relevant and providing the best security for users. Chainlink has been extremely successful as it found an area that was underserved and filled that very space. Now that it has done so like everything else it has to continue to adapt and innovate. With what they have rolled out in the 2.0 White Paper they have announced and described what they are going to do to accomplish this. I am looking forward to watching this platform continue its decentralization and adopt a ton of these new features. 

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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