The blockchain and crypto space of novel and exciting. It is still in the discovery phase with developers jumping in on the bandwagon to create their masterpieces of technological innovation. Initially, when Bitcoin pioneered the technology, the space was widespread with reservations regarding the viability of the technology. Many problems were encountered and new cryptocurrencies were launched to solve the problems. Chainlink is one of the key cryptocurrencies which solves a crucial problem in the blockchain space.
What problem does Chainlink solve?
Blockchain is a digital ledger – like any accounting ledger. It records every transaction – after verification – in the form of blocks, which are, you guessed it, the building blocks of the blockchain. But the problem is that each blockchain is a universe of its own, initially completely disconnected from the outside world. This made getting data – even price data – into a blockchain a difficult feat. Blockchains had to resort to centralized sources for data which violated the fundamentals of the technology which advocated decentralization.
Chainlink – with its innovative technology – figured out how to enable the exchange of data in a secure yet decentralized manner. Chainlink oracles verify and authenticate external data sources and convey the data to and from blockchains. Chainlink is based on the blockchain of Ethereum. It creates a decentralized pool of Oracles. The oracles are ranked by Chainlink’s algorithm on the basis of their reliability.
Is Chainlink a good investment?
Chainlink is an essential puzzle piece to the blockchain infrastructure. Without its technology, blockchains will stay disconnected in terms of data. Although the technology is being replicated and will continue to be replicated, the token still stands as the pioneer of the technology. Like Bitcoin and Ethereum – the original pioneers of their respective technologies – Chainlink is expected to not lose its value and continue to be crucial.
LINK showed phenomenal performance in the year. The cryptocurrency started off with a price level of $11.27 and reached to its all-time high of $52.88. At the time of press, LINK stands at a price level of $22.54.
Digital Coin Price estimates the cryptocurrency to end the year 2021 with a price level of $33.6. Their forecasts estimate Chainlink will reach $78.6 by 2026. Wallet Investor is more bullish on cryptocurrency. They project the one-year price to be at $43.9 while the five-year projection is at $129.
LINK’s development
The cryptocurrency’s technology is still in the explorative phase and there is a lot that can be done with it. Recently, a partnership with NAOS Finance which facilitates DeFi lenders and SME borrowers. Chainlink will prove to be a bridge between CeFi and DeFi and enable NAOS users non-crypto related financial data previously unavailable. The network also incorporated AccuWeather’s forecast data to the blockchain.
In conclusion, the possibilities run wild with Chainlink. A lot more can be explored and developed. The unique offering of Chainlink makes it an integral part of the blockchain infrastructure which makes it a good investment.
