The Rising Importance of Web3 Functions: Chainlink, Gelato, and Lit Actions

Web3 functions are becoming increasingly important in the blockchain ecosystem. They provide smart contract developers with the ability to connect to external data and services in real-time, making it possible to create truly decentralized applications. Three Web3 functions that are particularly noteworthy are Chainlink, Gelato, and Lit Actions, all of which are part of the Messari ecosystem.

Imagine that you are a trader in the cryptocurrency market. You see that the price of Bitcoin, Ethereum, and other cryptocurrencies is rapidly rising, which makes you want to invest. But you are hesitant because you are not sure if this upward trend will continue. You want to make an informed decision, so you start looking for real-time data on the market.

You know that you can't rely on centralized data sources because they often have delays, are prone to manipulation, and can be censored. Instead, you turn to Web3 functions such as Chainlink, Gelato, and Lit Actions.

Concrete Examples

• Chainlink: You use the Chainlink network to get real-time price data for Bitcoin and Ethereum from multiple decentralized data providers. This data is trustworthy and tamper-proof because it is secured by smart contracts and powered by a decentralized network of node operators.
• Gelato: You use the Gelato network to automate your trading strategy based on certain market conditions. For example, you can set up a condition that triggers a buy order for Bitcoin if the price drops below a certain threshold, or a sell order if the price rises above a certain threshold. Gelato makes it possible to execute your trades in real-time, without the need for manual intervention.
• Lit Actions: You use Lit Actions to create a customized dashboard that displays real-time market data as well as other Web3 functions such as Chainlink and Gelato. This dashboard allows you to monitor the performance of your portfolio, execute trades, and analyze market trends all in one place.

1. Web3 functions such as Chainlink, Gelato, and Lit Actions are becoming increasingly important in the blockchain ecosystem because they provide smart contract developers with the ability to connect to external data and services in real-time.
2. Chainlink provides real-time price data for cryptocurrencies from multiple decentralized data providers, making it possible to create trustworthy and tamper-proof trading strategies.
3. Gelato automates trading strategies based on certain market conditions, allowing traders to execute trades in real-time without manual intervention. Lit Actions provides a customized dashboard that allows traders to monitor their portfolio, execute trades, and analyze market trends all in one place.