Chainlink and its claim to the cryptocurrency iron throne.
Who are the houses? And what are their claims to the crypto iron throne?
One of the main ideologies of cryptocurrency has always been the decentralisation of currency.
Over a decade ago the mysterious Satoshi Nakamoto created Bitcoin, the first and by far most popular form of cryptocurrency in the world. Despite its fame, Bitcoin and bitcoin cash are not sitting easily on the throne. innovators have emerged in huge numbers, and there are more than 7,000 cryptocurrencies on the market today.
For example, LiteCoin founder Charlie Lee wanted to create the “lite” version of Bitcoin and develop a cryptocurrency that could play the role of “silver to Bitcoin’s gold.” While bitcoin transactions take about 10 minutes to confirm, litecoin transactions are far faster, taking less than three minutes. In addition, while it takes specialized hardware and impressive raw computing power for users to mine bitcoin, Litecoin has much lower system requirements — in fact, ordinary PCs are capable of mining for it.
Ethereum founder, Vitalik Buterin, took Kevin Lee’s and Nakomoto’s idea one step further — rather than decentralizing money, Ethereum’s goal was to decentralize the internet by replacing servers with a worldwide system of nodes: in essence to create a sort of “one computer for the entire world.”
Ethereum is a software platform based off blockchain technology in which users can exchange a cryptocurrency called ether. Ether has become one of the most popular cryptocurrencies in the world, with a market cap approaching $139 billion that puts it second only to Bitcoin in market share. But the real draw is the platform itself, which has become wildly popular as a host for other cryptocurrencies — in other words, not only do investors profit from one of the best and most popular cryptocurrencies on the market, but also from the wider uses of Ethereum itself.
The Ethereum platform is predicated on smart contracts, or agreements between two parties on a blockchain network with the transaction recorded in blocks of data.
The problem is that these transactions can only occur on a platform like Ethereum, and they need some way to draw real-world data into the platform in order to execute smart contracts when certain conditions are met.
Oracles, smart contracts and their strategy to make their way to the throne.
The solution to this problem is data providers called : Oracles. Blockchain oracles are third-party services that provide smart contracts with external information. They serve as bridges between blockchains and the outside world.
Blockchains and smart contracts cannot access off-chain data (data that is outside of the network). However, for many contractual agreements, it is vital to have relevant information from the outside world to execute the agreement.
This is where blockchain oracles come into play, as they provide a link between off-chain and on-chain data. Oracles are vital within the blockchain ecosystem because they broaden the scope in which smart contracts can operate. Without blockchain oracles, smart contracts would have very limited use as they would only have access to data from within their networks.
Chainlink has come up with a reputation system that guarantees the data is accurate, ensuring the validity of smart contracts. Once an oracle’s data is verified, they are paid with Link, Chainlink’s cryptocurrency of choice. This system builds confidence in the platform, and the growing popularity of decentralized finance, or DeFi, helps make Link a contender for the best cryptocurrency.
Chainlink was recognised by many around the globe when Google Cloud demonstrated the technology used.
Chainlink has a current market capitalisation 7 million USD, was up 700% over the last year, and is currently trading at $18.22. There were many reasons for their monumental growth, one of them being the range of use cases for their smart contracts. Some of them being :
- Decentralized Finance
- External Payments
- Gaming and Randomness
- Enterprise Systems
- Supply Chain
- Authorization and Identity
2020 was the year for chainlink. The network launched a funding program, doubled their team, and also added new cases in insurance and games. The network was recognised by World Economic Forum and was bannered under the 100 most promising technology pioneers of 2020. Chainlink integrated with more than 300 projects in 2020. By securing billions in its value and reinforcing its security and audit, chainlink was the most statistical currency in 2020.
How do I buy and store LINK and what are its price predictions for the future?
Binance is one of the major exchanges to buy and store chainlink.
According to my predictions LINK will rise in the years to come. Chainlink also met its $14 price estimate in 2020. Provided that their bullish forecast remains unchanged, the targeted price for chainlink (LINK) is predicted to go near $67 by the end of 2025.