Crypto analyst and trader Tyler Swope is placing Chainlink (LINK) in the spotlight as the oracle project prepares to dive head first into the non-fungible token (NFT) space.
In a new video, Swope tracks the little-known connection between Chainlink and the emerging digital art industry.
The trader highlights that the number one oracle project in the crypto space is already in the midst of entering the booming NFT and gaming market. Swope notes that the team released an article in June of 2020 outlining various strategies to mint dynamic NFTs.
The Chainlink blog post defines dynamic NFTs as,
“…Perpetual smart contracts that use oracles to communicate with and react to external data and systems. The oracle allows the NFT to use external data/systems as a mechanism for minting/burning NFTs, trading peer-to-peer, and checking state.”
Not only has the oracle project been investigating how to participate in the NFT space, but Swope notes that Chainlink’s Verifiable Randmoness Generator (VRF) is already live and adding value to the sector.
“If you didn’t know, Chainlink has their VRF. Chainlink oracle nodes create a random number which is then imputed into smart contracts and the VRF has been live on the mainnet since October of last year and VRF gives dynamic abilities to NFTs through randomness.”
NFT projects such as Ether Cats are already implementing the Chainlink VRF on their platforms to create dynamic NFTS.
Additionally, Swope notes that Chainlink can add dynamic capabilities to NFTs by attaching real world events or outcomes to a digital asset.
“It doesn’t stop there… Real world events can be imputed into NFTs. Minting an NFT card based on a hat trick? What about going even further where the value of the NFT card depends on the real life statistical outputs of the associated player? Chainlink oracles can source real life performance data to determine the value of cards which is used to decide the winners of tournaments and trigger winning payouts.”
Chainlink is also positioned to utilize dynamic NFTs in the identity verification sector, says Swope, highlighting that the team mentions the opportunity in its original blog post on NFTs.
“Even more down the rabbit hole, what about authenticity verification even with identity. Going back to their blog post on NFTs and Chainlink they speak on identity and say, ‘several projects are already working on how to develop digital identities that can interface with many existing applications by doing so users can plug and play it with other applications to keep control of their private data.
Chainlink allows smart contracts to query identity-based blockchains to verify personal credentials as well as to append data to a person’s identity based on an output from another business process.'”
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Featured Image: Shutterstock/Tithi Luadthong