Polkadot vs Chainlink | What Sets Them Apart?

It can be hard to differentiate the difference and figure out which crypto is better not just for your daily use but also as an investment. This is especially true with Polkadot vs Chainlink.

Two cryptos built for different purposes and two cryptos that are revolutionizing the crypto space. In this article I cover what both Polkadot and Chainlink are and what the main differences are.

What is the difference between Polkadot and Chainlink?

Polkadot and Chainlink are very different however they are also very similar in the way that they help to connect two data sources and create a bridge. For Chainlink this is a bridge for the date between the blockchain and the real world data.

And for Polkadot this is a bridge for the data between two separate networks such as Ethereum and Avalanche.

Polkadot vs Chainlink

Polkadot vs Chainlink

What is Polkadot?

Polkadot is a blockchain built to help connect different blockchains and bridge the gap between them. It was created by the Web3 Foundation with the goal of making the cryptocurrency space multichain, allowing the transaction of data and tokens between multiple different chains. Built for its security and scalability, Polkadot quickly rose to fame making a name for itself.

Polkadot, much like other rising cryptos such as Solana and Avalanche, runs off a POS (Proof-of-Stake) consensus mechanism which allows for much faster and cheaper transactions rather than other blockchains such as Bitcoin that run off a POW (Proof-of-Work).

Due to Polkadot being proof of stake it can allow the creation of dApps very fast and can facilitate transactions much faster than competitors and for a lower fee. With a block time of just 0.5 seconds this is much faster compared to some of the bigger blockchains such as Ethereum which comes in with a block time of 10 seconds.

Why is Polkadot needed?

As crypto grows the number of layer 1 blockchains grows alongside it, with so many networks built around different languages and also different strengths it can become a pain not only for the end users but also for developers to keep up with and keep track of all networks.

This is where a blockchain such as Polkadot comes in. Connecting all these chains in one single hub allows developers to build and launch dApps to multiple chains faster and cheaper than before.

The Polkadot team

The Polkadot team

As mentioned previously Polkadot was founded by the Web3 Foundation, but who is that?

Gavin Wood is the founder of the Web3 foundation and also created Polkadot and the popular Polkadot side chain Kusama. Gavin Woods is also one of the founders of Ethereum alongside Vitalik Buterin

Gavin Wood is just one of three founders. Peter Czaban is the Technology Directors of the Web3 Foundations and Robert Habermeier is the co-founder of Polkadot.

What is Chainlink?

How Chainlink works

Chainlink is a network of oracles that allows smart contracts to interact with data in the real world outside of crypto in a decentralized way. With Chainlink traditional systems outside of the blockchain can communicate safely and securely with protocols and systems on the blockchain.

The architecture and workings of Chainlink can get very confusing very fast and is one of the more in-depth systems in crypto.

You can think of Chainlink as the middleman between on chain data and off chain data. Not only does Chainlin allows smart contracts to access the off chain data but it also does this in real time so smart contracts can access data such as asset prices and be updated in real time.

Why is Chainlink needed?

Due to this connection Chainlink has quickly become a core part of many networks systems as its bridge to the real world and all of its data. Picture this, a developer is building a smart contract which requires data from the real world such as asset prices, how are they supposed to?

This is where Chainlink comes in. Chainlink allows the developer to create a decentralized oracle that can have seamless access to real world data, payments, APIs and more, allowing the developer to connect their decentralized smart contract to the real world while maintaining the high level of blockchain security.

This explanation is very much in layman's terms as the world of oracle and smart contracts can get very confusing very quickly.

The Chainlink team

Chainlink has a very broad team and refers to themselves as a “global community of developers, academics, and enterprise experts with deep experience in cryptography, decentralized systems, and smart contracts.”

Polkadot vs Chainlink which is a better investment?

As both Polkadot and Chainlink has use cases in the future of crypto it is a fairly safe bet that both will be around in the coming years and the next bull run, because of this we will look at what both Polkadot and Chainlinks all time high were.

Polkadot at the time of writing this is trading at $5.47 per token and had an ATH (All-Time-High) of $54. Based of this if Polkadot were to reach its ATH again it would be a 10x from today's trading price.

Polkadot price on Coingecko

As for Chainlink, at the time of writing this LINK is trading at $7 with an ATH of $51. Again based on this if LINK were to reach its ATH again it would be around an 8x from today's trading price.

Chainlink price on Coingecko

Purely based on the return multiplier back to ATH we can see that Polkadot will yield better returns, however in saying that there are many more factors you could take into account when deciding which to invest in.

For example, Polkadot has many competitors in the multi chain sector such as ATOM while Chainlink has more or less dominated the oracle space and potentially has more use cases in the future which could push LINKs price well past the previous all time high.

It can be hard to differentiate the difference and figure out which crypto is better not just for your daily use but also as an investment. This is especially true with Polkadot vs Chainlink.

Two cryptos built for different purposes and two cryptos that are revolutionizing the crypto space. In this article I cover what both Polkadot and Chainlink are and what the main differences are.

What is the difference between Polkadot and Chainlink?

Polkadot and Chainlink are very different however they are also very similar in the way that they help to connect two data sources and create a bridge. For Chainlink this is a bridge for the date between the blockchain and the real world data.

And for Polkadot this is a bridge for the data between two separate networks such as Ethereum and Avalanche.

Polkadot vs Chainlink

Polkadot vs Chainlink

What is Polkadot?

Polkadot is a blockchain built to help connect different blockchains and bridge the gap between them. It was created by the Web3 Foundation with the goal of making the cryptocurrency space multichain, allowing the transaction of data and tokens between multiple different chains. Built for its security and scalability, Polkadot quickly rose to fame making a name for itself.

Polkadot, much like other rising cryptos such as Solana and Avalanche, runs off a POS (Proof-of-Stake) consensus mechanism which allows for much faster and cheaper transactions rather than other blockchains such as Bitcoin that run off a POW (Proof-of-Work).

Due to Polkadot being proof of stake it can allow the creation of dApps very fast and can facilitate transactions much faster than competitors and for a lower fee. With a block time of just 0.5 seconds this is much faster compared to some of the bigger blockchains such as Ethereum which comes in with a block time of 10 seconds.

Why is Polkadot needed?

As crypto grows the number of layer 1 blockchains grows alongside it, with so many networks built around different languages and also different strengths it can become a pain not only for the end users but also for developers to keep up with and keep track of all networks.

This is where a blockchain such as Polkadot comes in. Connecting all these chains in one single hub allows developers to build and launch dApps to multiple chains faster and cheaper than before.

The Polkadot team

The Polkadot team

As mentioned previously Polkadot was founded by the Web3 Foundation, but who is that?

Gavin Wood is the founder of the Web3 foundation and also created Polkadot and the popular Polkadot side chain Kusama. Gavin Woods is also one of the founders of Ethereum alongside Vitalik Buterin

Gavin Wood is just one of three founders. Peter Czaban is the Technology Directors of the Web3 Foundations and Robert Habermeier is the co-founder of Polkadot.

What is Chainlink?

How Chainlink works

Chainlink is a network of oracles that allows smart contracts to interact with data in the real world outside of crypto in a decentralized way. With Chainlink traditional systems outside of the blockchain can communicate safely and securely with protocols and systems on the blockchain.

The architecture and workings of Chainlink can get very confusing very fast and is one of the more in-depth systems in crypto.

You can think of Chainlink as the middleman between on chain data and off chain data. Not only does Chainlin allows smart contracts to access the off chain data but it also does this in real time so smart contracts can access data such as asset prices and be updated in real time.

Why is Chainlink needed?

Due to this connection Chainlink has quickly become a core part of many networks systems as its bridge to the real world and all of its data. Picture this, a developer is building a smart contract which requires data from the real world such as asset prices, how are they supposed to?

This is where Chainlink comes in. Chainlink allows the developer to create a decentralized oracle that can have seamless access to real world data, payments, APIs and more, allowing the developer to connect their decentralized smart contract to the real world while maintaining the high level of blockchain security.

This explanation is very much in layman's terms as the world of oracle and smart contracts can get very confusing very quickly.

The Chainlink team

Chainlink has a very broad team and refers to themselves as a “global community of developers, academics, and enterprise experts with deep experience in cryptography, decentralized systems, and smart contracts.”

Polkadot vs Chainlink which is a better investment?

As both Polkadot and Chainlink has use cases in the future of crypto it is a fairly safe bet that both will be around in the coming years and the next bull run, because of this we will look at what both Polkadot and Chainlinks all time high were.

Polkadot at the time of writing this is trading at $5.47 per token and had an ATH (All-Time-High) of $54. Based of this if Polkadot were to reach its ATH again it would be a 10x from today's trading price.

Polkadot price on Coingecko

As for Chainlink, at the time of writing this LINK is trading at $7 with an ATH of $51. Again based on this if LINK were to reach its ATH again it would be around an 8x from today's trading price.

Chainlink price on Coingecko

Purely based on the return multiplier back to ATH we can see that Polkadot will yield better returns, however in saying that there are many more factors you could take into account when deciding which to invest in.

For example, Polkadot has many competitors in the multi chain sector such as ATOM while Chainlink has more or less dominated the oracle space and potentially has more use cases in the future which could push LINKs price well past the previous all time high.

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