Posted 9 months ago | by Ben Armstrong
Chainlink Reaches New All-time High
Chainlink is a decentralized oracle network built on top of the Ethereum network, which aims to supply data to decentralized blockchains by allowing smart contracts to securely connect to external data sources and APIs.
With a growing interest in the platform which is at its all-time high, there is a lot of speculation about is future. To learn about Bitboy Crypto’s prediction for this network and its token, make sure to watch the latest Youtube video!
Chainlink is not Killing Ethereum but Complementing it
While Neo and Cardano were built as a direct competitor to Ethereum, with both being dubbed the “Ethereum killer” by many, Chainlink was built on top of Ethereum as an ERC-20 token, enabling both platforms to work together and complement each other.
Both Ethereum and Chainlink are capitalizing on the movement of enterprises to blockchain technology as its adoption and applications increase by connecting blockchain technology to tech, prediction models, data aggregation, and other industries.
Chainlink offers real-world solutions in the form of its oracle network that connects off-chain and on-chain data, something that is now becoming increasingly important as demonstrated by Ethereum’s baseline protocol.
With Ethereum’s 2.0 release getting closer and Chainlink’s involvement in the development of the baseline protocol, this upgrade to the Ethereum network is sure to benefit both platforms and its users.
Chainlink is Connecting the Enterprise World with Blockchain Technology
Chainlink aims to allow developers to connect their smart contracts to data sources in the form of both input and outputs, allowing them to affect outside systems or networks and to prove contractual performance.
As smart contracts are unable to access data on their own, Chainlink acts as middleware solving the issue caused by how consensus is reached around a blockchain’s transaction.
By creating a decentralized network of oracles, the platform allows systems to avoid single points of failure that could result in errors or disruptions. This is achieved by allowing multiple Chainlinks to evaluate the same data before becoming the trigger.
LINK: Chainlink's Fuel
Chainlink is powered by the LINK token, which is an ERC-20 token with an added transfer and call functionality, allowing it to be received and processed by contracts within a single transaction.
This token is used as payment for the node operators on the Link Network, with prices being set by the node operators depending on the demand for the data they provide.
LINK can also be staked by node operators which allow them to earn passive income as well as the increasing scarcity of the token by holding, which shows the node operator’s commitment to the network and increases its credibility.
The limit for the total supply of LINK tokens is 1 billion, with the company keeping 30% of the total supply to finance the continued development and maintenance of the project, 35% dedicated to the Initial Coin Offering (ICO), and remaining 35% dedicated to incentivizing the network by paying the Node Operators.
Chainlink is on the Rise and Does not Seem to be Slowing Down
With Chainlink at an all-time high despite being a project launched back in 2017, it has shown more resilience and growth than most of its contemporary projects who are already past its prime.
The LINK token is currently sitting at rank 12 by Market Capitalization with a value of $6.01 and a trading volume of $530,463,37, showing enormous growth in the last 3 months when it started with a value of $3.26.
Its market capitalization showed the same behavior, by more than duplicating the original number at $1,118,271,729 by getting to $2,353,376,658.
The Future of Smart Contracts and Chainlink Seems Positive
Sergey Nazarov, Chainlink CEO, has shared its optimism about the adoption of smart contracts by enterprises and the imminent take-off they will be experiencing.
In a recent panel at Unitize 2020, he mentioned that the recent interesting blockchain adoption by
different industries as well as the regulations and acceptance by the government are fundamental elements that will boost the industry forward in upcoming months.
With blockchain networks becoming more aware of the need to adapt and coexist with already existing enterprise software, building on top of them instead of trying to replace them, blockchain adoption will occur naturally due to the benefits it brings to developers, organizations, and users.
With Chainlink already having experience in this aspect of blockchain, the upcoming release of Ethereum 2.0 and the baseline protocol, and the increasing interest from governments and industries in blockchain applications, there is only one certainty: The future is bright for blockchain.
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