WHAT IS CHAINLINK (LINK)?
Chainlink is a network of decentralized oracles that helps connect smart blockchain contracts to external resources (real-world data) in different networks, with LINK being the token used to pay for services on the network.
These decentralized oracles help blockchains and dApps to become more practical, connecting them to data outside the chain (off-chain). They consist of consulting the data source for specific information and then connecting by making the interface between the blockchain and the data feed. As a result, smart contracts can be executed based on specific information flowing from that feed, acting as a bridge that can digest external information in a format that a blockchain can understand and execute.
This fills a huge gap in this industry in terms of interoperability and true decentralization, because blockchains, by design, can only store data and not verify its authenticity or accuracy.
Therefore, Chainlink uses an oracle system to be able to interact securely with smart contracts that communicate with APIs from external systems (large companies).
This facilitates interoperability between existing blockchains, allowing smart contracts to be accessed outside network, integrating real data into the blockchain.
Chainlink is able to integrate information from off-chain companies, from the real economy, with on-chain projects.
HOW SUPPLY DYNAMICS WORKS:
The LINK token is the remuneration of the network. Those interested in using the platform pay in LINK tokens, which go to the nodes that accept the request and provide access to the oracle.
DO YOU HAVE A ROADMAP?
LINK does not have a Roadmap because it is a ready-to-use product and per company policy.
HOW SUPPLY DYNAMICS WORKS:
Analyzing the top 20 addresses (Excluding the addresses of the project itself and which has locked tokens), it is noted that many of them have had their balance stopped and have not moved for more than 10 months, and others have been accumulating more tokens.
VALUATION:
The LINK token experienced a meteoric increase this year, breaking through historical maximums, making it one of the top five crypto assets by market capitalization.
The future is promising and the increase in the price of Chainlink has been one of the most notable and interesting things in the world of cryptocurrencies.
To have a better idea of the reason for this market optimism with Chainlink and why it is in evidence, let's analyze some of the main events that have been emerging around the project.
The cryptocurrency has risen more than 1,000% in dollars since the March crash, when it was worth $ 1.50.
A few months ago, Zeus Capital, in a report, judged Chainlink as a farce, stating that they were building a position sold on LINK with a profit target of 99%.
Well, at least for now this position should be fine annoying for Zeus, as only in August the cryptocurrency has already risen more than 100%.
HISTORIC
Chainlink's founding team is led by CEO Sergey Nazarov and CTO Steven Ellis.
The Initial Coin Offering (ICO) was organized on September 19, 2017, raising the $ 32 million of the stipulated target. At that time, Chainlink's price was $ 0.11 (ETH was accepted as the only means of payment) and ROI reached x15 in dollars, x26 in ETH and x6 in BTC.
After the ICO, 32% of the tokens were sent to node operators, to encourage the ecosystem, and 30% remained within Chainlink, for development (35% were sold in the public sale of tokens).
Currently, the cryptocurrency is available for trading on several exchanges (Binance, Coinbase, OKEx, Bitfinex, Bittrex and all major brokerages) and in several pairs. There is no prospect of a price increase per listing on new exchanges.
Chainlink is currently ranked 5th in the market value ranking and has a market capitalization of US $ 6.64 billion.
During the week there was a 20% price correction in 24 hours. The graph shows how noticeable the drop in the percentage of Chainlink tokens on exchanges in 6 months, falling from 8.6% to 6.9% during that period. This means more coins being moved to offline wallets.
Interest in Chainlink is on the rise in the United States and globally, according to data from Google Trends. General market sentiment plays an important role in price dynamics.
REASONS
DEFIS
Much of the enthusiasm for Chainlink is the result of how the project has positioned itself properly to meet the continuous increase in demand for the DeFi protocols observed today. Most, if not all DeFi applications, require some type of price data feed.
A robust feed, preferably decentralized, is essential for prosperity and security most of these applications.
Chainlink has already made its decentralized oracles a standard in this industry and being the most well-known player in this field, she can benefit much more from the development of the DeFi branch.
This validates the thesis that many projects will not want to launch their own oracles and show that there is a real and growing demand in the DeFi protocol arena for the services that the Chainlink has to offer.
Chainlink has become the oracle provider for the main DeFi protocols currently on the rise, such as Aave and Synthetix, which are in 2nd and 5th place respectively in the ranking of the website DeFi Pulse tracking.
A LARGE AMOUNT OF PARTNERSHIPS AND COLLABORATIONS
Chainlink has made several announcements of cooperations and integrations throughout 2019 and 2020. Since the launch of its Mainnet, Chainlink has signed more than 200 partnerships.
Among the various partnerships is the cloud computing service Google Cloud, which recently announced that it intends to use the services and properties of the Chainlink project to integrate its data into blockchain.
Since the launch of its Mainnet in May 2019, the number of partnerships has only increased
CONCLUSION
ChainLink is a solid project that already has a real application for the real world.
It is a project that is already being used by companies and developers. It already has partnerships with a high degree of relevance and is increasingly in the "top of mind" when it comes to Data Management integrated with Blockchain.