CrypTalk (01): Should We Link to Chainlink?

January 26, 2021

Perhaps you've been thinking about what crypto to add to your portfolio. For sure you have heard about Chainlink (LINK). And I guess you have asked yourself already, "should I add LINK to my portfolio?" Is it really worth it to buy LINK? But before you take action, Do you even know LINK?

Chainlink is now one of the hottest and talked about projects in the crypto market. It doesn't aim to compete with other cryptocurrencies but rather wants to improve the entire sector through its unique protocol. Who would have thought that crypto which was not even included in the top 100 in 2018 is currently ranking in #7 on CoinMarketCap with a market capitalization of $9.5 B and a circulating supply of 402,509,556 LINK. The price of Chainlink also shows a great increase, from $2.23 in March 2020, it is currently tradable at a $23.71 price at the time of writing. LINK also reaches its ATH yesterday, January 25 at $25.65.

So should we LINK to Chainlink? My answer is "YES". Let's take a look here.

What is Chainlink?

Chainlink was launch in 2017 by Sergey Nazarov with co-founder Steve Ellis of SmartContract Chainlink Limited. Chainlink hosted an ICO in 2017 and was able to raise $32 million and has been in the spotlight ever since.

Chainlink (LINK) is a decentralized oracle network that aims to connect smart contracts with data from the real world. It attempts to rectify the "oracle problem" to get the off-chain data needed to operate many blockchain-based smart contracts. It does not operate its own blockchain rather, and it can run on many different blockchains simultaneously through its blockchain agnostic token protocol.

What is Oracle?

Oracle is a defi instrument needed to function as data feeds in smart contracts. It provides external data (e.g. temperature, weather, sports score, account balance, etc) that trigger smart contract executions upon the fulfillment of predefined conditions. The oracles of Chainlink are connected to the Ethereum network.

What problem does Chainlink solve and how does it works?

Blockchains and smart contracts have 
limitations and can only interact and 
receive data from their own networks. 
Chainlink delivers a network of nodes 
that relies on oracles to allow 
smart contracts to interoperate 
with off-chain data sources and expand 
their capabilities to bank payments, 
market data, event data, and any other 
type of data sources.

For example, you want to build a dApp that specializes in managing account balances. The dApp would not be able to interact and receive data from off-chain sources without the help of an oracle. By connecting a Chainlink oracle, the needed data will be received by this dApp and all the necessary information to users will be delivered

Chainlink's network of decentralized 
nodes provides decentralized trustless 
oracles to ensure security and 
reliability. 

Users of Chainlink can rest assured that the data they receive is not corrupt, incorrect, and timely. In case of a single node failure, it will be automatically replaced by the system with a better alternative.

Why Chainlink a project worthy of the hype?

Chainlink is not competing against any 
major project in the crypto space, 
it aims to link public blockchains to 
off-chain real-world entities such 
as APIs by using a secure, decentralized,
and trustless system. 

Chainlink is a step ahead of Band Protocol and DIA as the first mover within the oracle services niche and is now adopted and used as a blockchain oracle provider by the majority of the crypto projects.

In 2019,  Chainlink successfully lined up a strategic partnership with Google. The agreement allows users to connect to Google’s two most popular cloud services – BigQuery via API. Chainlink has also established many major partnerships with other tech giants such as Intel, Oracle, T-Systems (a subsidiary of Deutsche Telekom), and China’s BSN. Additionally, the project has one of the largest and most dedicated communities in the crypto space. 

If decentralized finance continues to boom, there will be more DeFi projects that will use Chainlink services and these will drive the LINK price higher. And even if the DeFi space loses some of its hype, Chainlink will still be needed, whether it is dApps or new businesses that want to integrate blockchain into their system and use smart contracts technology.

Another factor that will lock more LINK tokens is the upcoming "staking" feature and it is for sure will give a huge impact on the price of LINK. Many crypto experts say that Chainlink's price is expecting to reach $150-200 in the upcoming bull run. We are not sure though when is that bull run. But through looking at its price index, there is a possibility that the prediction will happen.

Chainlink is currently rank #7 with the highest capitalization in the CoinMarketCap and reached its ATH just yesterday at $25.65. Chainlink is a legit project with a strong and dedicated community and currently the most reliable project operating in that specific niche.

Chainlink is obviously a good crypto to invest in. However, always remember to DYOR for further details. You can visit this site to know more information about Chainlink https://chain.link/.

Disclaimer:

I am not a financial advisor and this article is for educational purposes only. Always make your own due diligence when investing in cryptocurrency. Any investment involves high risks, so do not invest more than what you can afford to lose.

References:

https://cryptotelegram.com/is-chainlink-link-a-good-investment/#:~:text=Blockchains%20and%20smart%20contracts%20can

https://www.securities.io/investing-in-chainlink-link-everything-you-need-to-know/

You might wonder about the title "CrypTalk". This blog aims to share information about other cryptocurrencies in the market. Most cryptocurrencies that I will tackle here are the ones I want to include in my portfolio. Some don't have enough time to research about other altcoins and some are just lazy to do it 😅. I hope this blog will help you get the information you need about your idle crypto. There will be more crypto to follow. So stay tuned!

Thanks for reading @Jane

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