Today we will be presenting the ChainLink market analysis, and we will be discussing how this network is utilizing the blockchain technology in a completely different way than the traditional networks such as Bitcoin and Ethereum are. Also, we will be explaining how it works, why the team behind it took that specific path, which goals they have set and why the potential investors find it very interesting.
Currency name(s): ChainLink (LINK)
Genesis Block: September 2017
Total Supply: Current supply is 350 million LINK tokens, out of which all are in circulation. The maximum supply is 1 billion LINK tokens, but it is yet to be announced when all will be released
Features: decentralized, smart contacts, decentralized apps support
The ChainLink network is a different blockchain technology than what the mainstream, currency tokens such as Bitcoin are providing. It is different because it implements the blockchain technology very differently from many other networks now available. Ever since the blockchain community started to explore how the blockchain technology can be applied to different aspects of businesses, the technology’s purpose started to widen. Ethereum was the first to go down this road, and the team behind Ethereum developed a method to implement smart contracts (which we will describe more in-depth in the following Technology part of this article), and the ability to include the functioning of decentralized apps and implement them onto the network (more on this further in the article as well). However, ChainLink is somewhat different from Ethereum as well – it is an oracle service, which is set to collect verified real-world data and bring it onto the blockchain.
In order to use blockchain technology, the users had to be connected to the blockchain network either directly or via nodes and only then were they available to utilize the technology. However, Ethereum started paving the way for connecting the blockchain technology to smart contracts, but the team behind ChainLink goes even deeper than that – the goal is to provide a method for connecting blockchain to an off-chain structure through smart contracts. This would mean that the blockchain technology would be able to establish a connection with various powerful infrastructures, such as APIs, bank and retail payments, constantly updated market data, and even other blockchains.
In our ChainLink market analysis, we have found that the ChainLink network bears resemblances to the Augur network, as in this network uses oracle nodes as well to test and verify real-world data and then prepare it to be implemented into the blockchain, more specifically into smart contracts. Anything can be recorded in the smart contracts, ranging from weather data to stock data, payment transfer, fluctuations, etc. Once the data has been collected by the nodes and sorted, and the group consensus is reached, the new block is added to the network once.
As it is designed to have APIs integrated and the data can be searched by any entity, some see the ChainLink network as a very powerful collective data search engine. In order to access the information, the requesting contract has to go through 3 other contracts:
There are also off-chain oracle nodes which fetch the data from connected off-chain sources and provide that data using the ChainLink network. This way, for example, the NYSE can be connected to ChainLink and can provide real-time updates on numerous tickers such as S&P, Nasdaq and various other stocks or ETFs.
However, ChainLink does not want only individuals to act as nodes, but APIs as well. Once the node is created, the node holders or operators are rewarded in LINK tokens for providing services and data. This way, both organizations that have blockchain technology implemented and those which do not can link onto the ChainLink network and provide crucial data and services, creating truly decentralized access to information.
Our ChainLink market analysis has shown that this token has come a long way and is currently, June 2019, hitting its peak prices. The current price per token is its highest ever, averaging at around $2.12, and the market cap has been surging, currently sitting at around $745 million. The ChainLink token is ranked in the top 50 cryptocurrency tokens, and many investors are following its progress and achievements. However, things were not always this great for the network and its valuation; namely, the token experienced market fluctuations in September 2017 when the lowest price was recorded. During that period, one ChainLink token was trading at around $0.12. The price per token is expected to change once more tokens are released in circulation. For the time being, Binance, Huobi Global and Iquant support ChainLink trading pairs, but it can be bought only using other cryptocurrencies. Fiat currency pairs for trading with ChainLink tokens are not supported as of yet.
Created with a purpose to bring together the blockchain technology and various powerful enterprise ecosystems, the ChainLink network is making large steps into this direction. Focusing only on bringing smart contracts and DApp platform that enterprises can adopt, this network is seen as the industry leader by many within the cryptocurrency community. And with Gartner, Google and SWIFT as backers and early adopters, ChainLink is truly paving the way for mass blockchain adoption and integration within the existing systems. That is why a great holding position for this token is medium to long, as its value, once they bring more adopters to the table, is expected to rise. On top of that, an up-to-date return on investment of around 12x, it is no wonder many are following this network closely.
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