Many blockchains thrive within the crypto space, but they all are confined within the blockchain. What if some data or information is required beyond the reach of the blockchain network?? This is when Chainlink comes into the picture to bridge the gap between the blockchain and off-blockchain networks through the middleware software called Oracles.
LINK, the native token of the Chainlink ecosystem also excelled during the first half of 2021 and smashed levels above 50. Since then the asset has experienced multiple ups and downs. And currently reside in some important zones where a breakout is mandatory but least expected.
What is Chainlink-In Brief
Chainlink is an oracle that aims to connect the global network of computers to provide reliable data to the smart contracts built on the blockchain. Smart contracts are nothing but predefined programs which get executed only when the conditions written are met. Now when these contracts are being used widely, then in some cases smart contracts require data from external sources to get executed.
And hence to make things smooth, Chainlink was created to connect the blockchain with external data sources through Oracles. These oracles are the data providers who get incentives in the form of LINK, to provide accurate data.
Chainlink was initially launched in 2017 by Steve Ellis and Sergey Nazarov. The team further held an ICO and raised $32 billion selling 35% of the 1 billion total supply of LINK tokens. 30% of the remaining supply was distributed to the smart contracts, for the development of the Chainlink blockchain. And nearly 35% of the supply was kept reserve to incentivize the node operators or the oracles.
How Does Chainlink Work?
The Chainlink is being created for the main purpose to connect the blockchain with external sources to get the required data to process the smart contracts. And hence do so, the platform follows a step-by-step process to secure the data and also keep the track of the finality time.
To carry out the data search and transfer smoothly, Chainlink is powered mainly by three different types of smart contracts that perform their roles and responsibilities.
- Aggregating Contracts:- This contract searches for the required data specified in the smart contracts and collects them all.
- Order-Matching Contracts:- It matches the smart contract’s service-level agreement(SNL) with the appropriate bids.
- Reputation Contract:- This contract checks the reputation of the oracle considering the factors like total no of a completed request, average response time, no of LINK staked, etc
Chainlink’s main task is to connect the blockchain with external data sources. And to carry out this process efficiently, Chainlink executes in three different steps.
The user posts his requirements by entering into a service level agreement(SLA). Later the software finds the oracle that can find the desired data. Once all the parameters are set, the user deposits LINK by submitting the SNL.
Here the oracles find the requested data from external sources and obtain them from the real world. The data is then processed by the oracles and sent back to the Chainlink Blockchain.
Verify the Results
The final step is to verify the results collected from the oracles and hand them over to the Aggregation contract. This contract verifies the data and returns a weighted score to the user.
Will Chainlink Hit $100 in 2022?
Chainlink maintained a very silent trend since its inception and jumped high during the 2020 DeFi boom for the first time. However, it continued after a minor consolidation and spiked to hit the ATH around $54 in the mid of 2021. Further, the asset did plunge to the lower levels but also showed immense strength to range high close to $40 a couple of times.
Currently, the crypto space is showcasing extreme volatility which causes huge price fluctuations. And hence an upcoming couple of months may be pretty uncertain and after which one can expect a notable uptrend. Therefore if the asset inculcates a bullish momentum and reignites bull run, then the LINK price may reach its ATH of around $54 by the mid of 2022.
Yet if the bulls remain in power and continue to thrive, then the possibility of the asset hitting $100 may be pretty high. Else with the minor variations, LINK may trade around $70 to $80 by the end of 2022. However, if the bears regain the power after the asset forms a new ATH, then it may plunge a little but bounce back to hover around $55.
Factors Impacting LINK Price Today
Access to Authentic Data
Chainlink’s architecture having multiple smart contracts performing their roles and the process of searching & connecting the real world is one of the most lucrative things that the platform follows.
Efficient Security System
The data on the Chainlink oracles are pretty secure, guaranteeing accurate information with a 4-way security system. This includes a validation system, Reputation service, Certification services, and contact upgrade services.
The Chainlink platform is compatible between Bitcoin, Ethereum and allows the banks & payment services to be a part of the ecosystem
Partnerships & Collaborations
The platform has partnered with the largest companies like Google Cloud, Oracle, and Swift that building immense trust over the platform
Where & How to buy Chainlink(LINK)
Chainlink ranged high slowly and steadily but managed to gather huge attention from the crowd. Therefore is widely available for trade on most of the platforms around the globe. Yet here in CoinDCX, you can get the best offers and additional benefits along with hassle-free trades.
If you have not started yet, then just download the CoinDCX mobile App on your smartphone. The New Year upgrade is on the toes where-in the app is getting upgraded to CoinDCX Pro with additional features and benefits. Download the app now and unlock multiple features at a single touch.
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