As blockchains evolved, smart contracts became an inseparable aspect of the same. Transactions aided with these contracts are prudent, safe and secure. But is it ever possible to pause a smart contract on a blockchain? Moreover, that is not probable! The agenda is that any transaction or data made via such contracts on the blocks are irreversible.
However, a block chain running on smart agreements needs every data to be in an on-chain format. On the flip side, any data outside a blockchain is considered as off-chain and cannot be added to a block without an intermediate. Therefore, when the need for an intermediate was raised, the Chainlink network landed on its feet! But, what problems did the network crack?
Oracles formed a bridge between off and on-chain data. In simple words, these are software capable of transcribing real time data onto smart contracts on a blockchain. So, if Oracles aided the data conversion, why did Chainlink undertake it? What exactly does this network do?
Though oracles were able to convert off-chain data onto smart agreements, a setback arose. That is, these software were not decentralized and staked the security and reliability of the data passed into. To retort this flaw in the system, Chainlink entered as a decentralized node network.
LINK, the native token of the network and helps in payments for services happening within the network. Powering the network, crypto money has made a significant pace with a current market rank of 14. Currently stepping into a price change of -6.46%, what will be the fate of this coin? For the latest updates and Chainlink price prediction, browse past!
Though the world of cryptocurrencies continues to expand, and many have started investing in most currencies, each of them has got their pros and cons on either end. That’s why new projects and currencies are seen coming into the market promising to offer better features. A new project eventually tries to bypass the cons of the previous crypto networks.
One such project is Chainlink (LINK) which is attempting to bring interoperability to the blockchain industry. That is unlike conventional blockchains that exist, Chainlink offers input guarantee for a range of external data. It aims to bridge the gap between blockchain technology based smart contracts and the real world applications.
|All Time High||$52.88 May 10, 2021|
|All Time Low||$0.1263 Sep 23, 2017|
|Circulating supply||433,009,554 LINK|
|Total Supply||1,000,000,000 LINK|
What is Chainlink (LINK)?
Chainlink is unique compared to other blockchain projects. The business model is solely focused on the creation of smart contracts for the outside world. Chainlink hopes to decentralize the Internet to bridge the gap between blockchains and the applications that exist in the real world.
The Chainlink system has a decentralized network of Oracles, so that smart contracts can safely interact with off-chain platforms. Founded in September 2014 by its CEO Sergey Nazarov and CTO Steve Ellis.
Chainlink node operators extract data from off-chain systems and convert it into blockchain compatible formats. They are awarded with LINK cryptocurrency – an ERC-20 token based on Ethereum. According to the developers, the price of LINK is closely correlated to the number of node operators.
Since both Oracle and Chainlink work simultaneously for data conversion, the working might sound arduous. But in reality it involves just 3 steps! Beginning the process, a smart contract requests data when required. The LINK protocol receives the request and generates a Chainlink Service level Agreement.
Meanwhile, the agreement will further generate 3 other contracts. One for reputation, which will check the Oracle and verify it. Secondly, the next contract acts as a bridge between the request contract and the nodes that take the requests.
The translation of off-chain to on-chain data and vice versa, is taken care of by the Chainlink Core. The request is first converted to an off-chain form so that the real time information can read the request and easily fetch the required data via an API. After the accurate information is at the nodes, they are further transcribed to on-chain language and delivered to the nodes! Thus, the Chainlink protocol increases transparency and improves reliability and accuracy of the data that enters the block chain!
The LINK token powers the entire process and acts as the network’s fueling agent. That is, Chainlink nodes are paid in LINK tokens for lending their services in fetching the real time data into the blockchain. But before that, each node must stake LINK tokens in the network promising to offer accurate services.
The network has no Road map yet is collaborating with diverse projects post announcements. Some significant partners include Wanchain, Signal Capital, Request network, Witnet and many more. The protocol also partnered with dClimate, an Ethereum based data project. And just yesterday, Mark Cuban, who believes Ethereum has greater long term value, announced an investment in dClimate, which works with Chainlink for data operations. Buzzing on Twitter, the network’s biggest event, Smartcon is just round the corner!
Chainlink Price Prediction 2021
Chainlink continued to trade at $11.45 during January. Surprisingly, the price spiked to $51.17 to hit a new high on May 2nd. When the market collapsed on May 19, the LINK price wiped down from $36.8 to $21. However, post this point, the price has been gradually surging.
It has drawn a lot of attention and attracted new users to their project. The fundamentals look healthy for many analysts. The altcoin has been proactive in launching its products and developments well within time, growing consistently. Partnering with prominent companies like Google Cloud, the LINK price may soar significantly to blow at $37.008 by the year end.
On the other hand, considering all market sentiments and news playing hide and seek, major setbacks can arise. If any other unforeseen circumstances or competitor coins give a tough road ahead, the altcoin price might plummet to support levels at $15.988.
However, the regular buying and selling pressures may put LINK at an average range of $25.174 to $30.063.
Chainlink Price Prediction 2022
If the altcoin closes this year hitting the highs, then 2022 might start bullish at $37.114. On the other hand, if a bearish trap engulfs, then 2022 trade might resume at a similar trend at $16.029.
If the network boosts the reward levels for its nodes, then it might grab new nodes staking their tokens, leading a pump in the price. In such a case, by the end of 2022, the LINK price might smash a new high of $64.883. However, being a highly transparent protocol, the average price of its token can hit between $31.44 and $40.005 on an average.
On the flipside, a possible data manipulation is being debated by many critics. If the network does not work to improvise this, then the price can bounce down to $24.869.
5 Years Chainlink Price Prediction
In 5 years, with more partnerships, a large treasury of reserve funds, and an in-demand service, it seems that the platform is well-poised to handle any challenges that may crop up in time. With new updates in connections to APIs, the utility token can be on cards with a maximum of $121.07 by the end of next five years.
On the other hand, if the market crashes due to controversies on conventional cryptos and blockchain, following other currencies, LINK may also dip to $99.731. If smart contracts can seamlessly process over the years, then the altcoin might move at an average of $112.99.
What Does the Market Say?
According to trading beasts, the LINK price may trade around $24.081 by the end of 2021 and by the end of 2024, the price may reach $33.223.
It rates Chainlink as a solid investment with expectations of soaring prices for years to come. Digitalcoin expects that Chainlink (LINK) could be trading at $32.48 at the end of 2021.
Wallet Investor’s algorithm-based forecast is highly bullish about the future price of Chainlink. They think the LINK price can go up to $56.834 in one year. Based on the current market situation, they project the rate jumping to $226.161 by the end of 2026.
As per Longforecasts, Link price may trade in between $25.39 to $31.51 by the end of 2021 and by mid 2025, the price may rally and cross $51.00.
EXPERT’S CORNER | What experts say about Chainlink?
Know Our Chainlink (LINK) Price Predictions
Chainlink has the inherent capability to expand smart contracts, allowing data accessibility for events, transactions, and going in the same trend. Optimism seems to be catching up with the heat on a long-term price forecast for the platform. According to Coinpedia’s formulated prediction, if the network updates in cryptography and starts new partnerships, the LINK price might surge up to $37.00 as the year ends.
On the flip side, many critics have begun questioning the purpose of LINK tokens in the project. If it persists, and other celebrities indicate a support statement, the price might get afflicted and plunge to $16.03.
|Year||Potential High||Potential Low|
How Did LINK Perform Previously?
LINK was funded with an ICO and managed to raise USD 32 million in September 2017. During its private token sale campaign LINK cost USD 0.09 per token and USD 0.11 during its public sale.
Then in the year 2018, the coin had a nice start doubling from $0.15 to $0.43 per coin. It had several price hikes, which increased the price of the currency to $1.
In June 2019, news broke on Twitter about a potential cooperation with Chainlink and Google Cloud. As a result, the price of LINK jumped from $1.19 to $1.93. Later, the coin grew further to $2.24 when it was listed on Coinbase.
By the time LINK appeared on the exchange, it had reached $4.45. By the end of August, the price of ChainLink had again decreased to $1.61.
ChainLink saw a significant price movement in January 2020 and ended in February. During this period, the coin managed to grow from $1.74 to $4.60 in the short time frame.
In March, it crucially fell back to its previous price point of $1.74. In April, it managed to recover, climbing back to $3.
Then on July 7, 2020, the LINK price underwent an impressive surge as China’s national blockchain network, the Blockchain Service Network (BSN) was activated with 135 nodes integrated with Chainlink price oracles.
The news saw the LINK price surge from around $4.87 USD to an all-time high of $5.60 USD, with gains of 15 percent on the day
Chainlink continued an ascending trendline into mid-August, gaining bullish momentum. Into late September 2020, it saw sudden bearish activity before beginning its climb once again into October.
With the continuation of the bearish trend LINK’s price was trading at $11.17 and further plunged to $10.57. Later, the price started to grow steadily to hit $16.08 at the end of November. At the end of 2020, Chainlink was trading at $11.14.
Chainlink might be a good investment if you plan to invest for a long time.
Chainlink was created by Sergey Nazarov.
For now, though, considering the current Chainlink price of $22.05, it’s unfeasible to expect Chainlink to cross $1,000 USD any time soon.
These are bridges which allow several blockchains to interact with off-chain resources such as market data.
Disclaimer: This piece of Article is only for informational purposes. It is not trading or financial advice.