Link Crypto: A Smart Investment Move?

Chainlink (LINK) is a decentralised oracle or blockchain that connects off-chain data to blockchains. It is a mid-ranked coin with a present value of $9.92 and a market capitalisation of $6,029,365,520. Chainlink's price predictions vary, with some analysts expecting it to reach $100-$200, and others speculating it could even hit $1,000 in the long term. As with any cryptocurrency investment, there are risks involved due to the inherent volatility of the market. However, Chainlink's unique business model, which focuses on advancing the entire sector rather than competing with other cryptocurrencies, along with its partnerships with companies like Google, make it an interesting prospect for investors.

Chainlink's price predictions

Chainlink is a decentralized oracle that acts as a data feed connecting blockchains to off-chain data. It has diverse applications, including in transport, telecommunication, weather, healthcare, finance, insurance, and gambling industries.

Short-Term Predictions (2024)

• According to CoinCodex, Chainlink's price is expected to increase by 10.56% and reach $12.51 by October 21, 2024.
• Coingape predicts that Chainlink's price will fluctuate between a minimum of $10.90 and a maximum of $14.09 in 2024, with an average trading price of $12.63.
• InvestingHaven's short-term prediction for Chainlink suggests a trading range between $0.62 and $7.55 in 2024, with an average predicted price of $2.475.

Medium-Term Predictions (2025-2026)

• CoinCodex predicts that Chainlink's price will range between $10.46 and $48.55 in 2025, representing a potential gain of up to 327.71% from its current price.
• Coingape's minimum and maximum price predictions for 2025 are $10.90 and $14.09, respectively, with an average trading price of $21.37.
• InvestingHaven's medium-term prediction for Chainlink suggests a support price of $26.47 and a resistance price of $39.58 in 2025, with an average price of $30.32.

Long-Term Predictions (2027-2050)

• CoinCodex predicts that Chainlink's price will be between $8.77 and $51.59 by 2030.
• Coingape's price predictions for Chainlink become increasingly optimistic over the long term. By 2027, they predict a minimum price of $10.62 and a maximum of $40.83. For 2030, they anticipate a minimum price of $102.16 and a maximum of $125.16.
• InvestingHaven's long-term prediction for Chainlink suggests a minimum price of $10.61 and a maximum of $39.58 by 2030.

It is important to note that cryptocurrency markets are highly volatile and subject to rapid changes. These predictions should not be considered financial advice, and thorough research is recommended before making any investment decisions.

The 'Oracle Problem'

The Oracle Problem

The blockchain oracle problem refers to the inability of blockchains to access external data, making them isolated networks, akin to a computer with no internet connection. This problem is one of the most significant barriers to the mass adoption of smart contracts on networks like Ethereum.

Smart contracts have the potential to revolutionize the way independent entities engage in contractual agreements and exchange value. However, to unlock this potential, they must be able to connect to the outside world. For example, financial smart contracts need market information to determine settlements, and insurance smart contracts need IoT and web data to make decisions on policy payouts.

The solution to this problem is an oracle, a secure piece of middleware that facilitates communication between blockchains and any off-chain system, including data providers, web APIs, cloud providers, IoT devices, and more. Oracles allow blockchains to access external data and systems, enabling smart contracts to connect to the outside world.

One of the key players in the oracle space is Chainlink, a decentralized oracle network. Chainlink has developed a network of decentralized oracle networks (DONs), utilizing a combination of security techniques to service a particular use case. By employing decentralization at the node and data source level, Chainlink ensures no single point of failure, providing strong guarantees that data will be available, delivered on time, and resistant to manipulation.

The oracle problem is a critical challenge that needs to be addressed for the widespread adoption of smart contracts and the realization of their full potential. With Chainlink and other similar solutions, the blockchain community is working towards overcoming this hurdle and unlocking the immense possibilities that smart contracts offer.

Chainlink's benefits

Chainlink (LINK) has been described as a "framework for building decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs." In other words, it is a decentralized oracle that connects blockchains to off-blockchain data.

Network Expansion:

Chainlink utilizes oracles, which are essential for network expansion. Oracles can monitor and provide data on various real-world events, such as weather conditions, sports scores, account balances, stock prices, and more. This makes Chainlink applicable to a diverse range of industries, including transport, telecommunications, healthcare, finance, insurance, and gambling.

Trustless Data:

Chainlink allows users to leverage oracle technology in a trustless manner. It ensures that the data received is not corrupt or incorrect and is timely. The system automatically replaces any failed nodes with higher-ranking alternatives, maintaining data integrity.

Smart Contract Initiation:

Oracles provide a reliable way to initiate smart contracts when outside parameters are met. Chainlink's oracle network enhances the functionality of smart contracts by providing secure and reliable data inputs and outputs.

Oracle Verification:

Chainlink's ecosystem includes a Reputation Contract that verifies the authenticity of oracles. It reviews the history and accuracy of each oracle, ranking them accordingly. This helps the system utilize the best oracles and ensures the accuracy of the data provided.

Data Reconciliation:

The Aggregating Contract within the Chainlink system reconciles incorrect or inconsistent data. It reviews all the data that has passed previous checks and disregards any data that doesn't align with the majority of network inputs. This validation step ensures that only accurate data is available to the blockchain.

With its unique business model, Chainlink aims to advance the entire cryptocurrency sector by improving the reliability and security of oracle networks. Its partnerships, such as the strategic alliance with Google, further solidify its position as one of the hottest coins in the market.

Chainlink's history

Chainlink was founded in 2017 by Sergey Nazarov, a 32-year-old entrepreneur with a major presence in the crypto market. The Chainlink network was initially designed as a centralised oracle system to verify incoming information. However, it has since evolved into a decentralised oracle network that pairs with smart contracts to provide secure transactions using external data sources and APIs.

In 2014, Sergey Nazarov co-founded a startup called SmartContract with Ari Juels and Steve Ellis. They wrote the whitepaper for Chainlink and launched the platform, which brings smart contracts to life by connecting them to external data and widely accepted bank payments. SmartContract was one of the ventures that led Nazarov to found Chainlink.

Chainlink is a blockchain-based cryptocurrency network that acts as a link between real-world data and smart contracts. It offers a tradable cryptocurrency token called LINK, which is used to pay for smart contract transactions on the Chainlink network. LINK tokens also hold their own value relative to fiat currencies. The platform facilitates smart contracts, which are blockchain agreements that automatically execute when the necessary preconditions are met. Chainlink assists oracles or outside data sources in acting as intermediaries between themselves and the blockchain.

Chainlink is a decentralised, blockchain-based network that bridges the gap between oracles that transmit real-world data and smart contracts that reside on the blockchain. While using individual oracles to collect data for smart contracts technically defeats the purpose of a decentralised blockchain, Chainlink aims to solve this problem by decentralising the system that uses individual oracles and APIs to gather and verify data relevant to these contracts.

Where to buy Chainlink

Chainlink (LINK) is a highly volatile asset capable of major price swings in a single day. It is a decentralised oracle network that connects smart contracts on the blockchain with real-world applications.

You can buy Chainlink on a crypto exchange, such as:

• Coinbase
• Uphold
• Binance
• Kraken
• Bybit
• KuCoin
• Gate.io

To buy Chainlink, you will need to create an account on an exchange, verify your email address and identity, deposit funds, and then exchange your chosen currency for Chainlink.

It is important to note that Chainlink is a highly volatile asset, and its price can fluctuate significantly. Before investing in Chainlink or any other cryptocurrency, be sure to do your own research and understand the risks involved.

Frequently asked questions