Crypto technology is the technology of the future.
From decentralized banking to a decentralized economy, it can usher at the beginning of a new era. However, to experience the crypto revolution catch fire, it would still take a good 10-15 years. This transition period has given a tremendous opportunity for new solutions to bridge the gap between the crypto world’s traditional finances and virtual currencies. One such solution is that of ChainLink.
In this blog post, we will reveal the overall viability of ChainLink from an investment standpoint. Taking a deeper dive into its potential market possibilities, we try to answer all hard questions for you. Can ChainLink reach $1000? ChainLink predictions for 2021. Is it too late to buy ChainLink online? All the good questions were answered.
By the end of this post, you will be able to make an informed decision if ChainLink still holds any investment potential for you.
Is ChainLink a Viable Investment Opportunity?
ChainLink disrupts the traditional working landscape but promises a strong future. But to understand how viable of an investment option ChainLink is, you need to take a few steps back. Let’s start with what Chain Link is at all.
The history of ChainLink was created back in the year 2014 with one goal in mind, verify incoming information with the help of a centralized oracle system. However, the technology’s potential fueled rapid penetration and usage of the system. Today, ChainLink is used to secure data using a decentralized node’s network running from off-blockchain, external data sources to on-blockchain smart contracts with the help of Oracle. This reinforces reliability and security factors that were previously the top pain point of a centralized system.
But that is not why ChainLink went viral in the first place. There’s an entirely different reason for it.
What makes ChainLink unique?
The triumph of ChainLink lies in its ability to render interoperability with maximum security in the transactions of electronic information.
ChainLinks application in industry verticals is diverse. Technology has a pervasive effect on transport, telecommunications, healthcare, finance, and governance operations. However, if you still have qualms about how impactful this tech investment can be, here is a list that clears all your doubts.
What are the key benefits of ChainLink?
If you are to name one cryptocurrency that has mastered the smart contracts game, it is ChainLink.
- Access to accurate data irrespective of the existing landscape is now a cakewalk.
- An efficient 4-way security system gives 360 safe environments for data transactions by establishing a validation system, reputation service, certification service, and contract upgrade service.
- Fraud management with smart contracts renders maximum transparency.
- Leveraging business opportunities is one of the biggest boons of ChainLink. With a decentralized network, investors can now authenticate external information readily.
- The user-friendly architectural design of ChainLink distributes a transaction of information into two categories: off-chain and on-chain.
- Scalability is one of the top USPs of ChainLink. Its infrastructure is capable of managing multiple networks simultaneously, making it time-efficient.
But, here’s a piece of advice.
Investing in this new volatile economy is innately risky. On the one hand, there are opportunities for high gains. On the other, chances are you’ll end up losing your investment money. So how do you make sure you end up on the right side of the game?
Leverage your knowledge of the ChainLink mechanism. Knowing exactly how it works can help you create more favorable investment conditions. Let’s start with addressing the underlying concepts.
How does ChainLink work?
ChainLink leverages two key components in the blockchain world, smart contracts, and oracle.
- An Oracle is a data feed connecting on-blockchain data with external off-blockchain data rendering a secured transaction environment.
- A Smart Contract is a pre-specified agreement on the blockchain landscape that validates information feed carried over oracle and auto-executes when the preset conditions are satisfied. The best part?
As the contract subsists on the blockchain, they are both static and transparent leveraging maximum trust within transacting parties.
From start to finish
The ChainLinking process commences with a smart contract requesting data services. This smart contract then puts a request via a requesting contract to obtain information.
Here, the chainlink preset protocol lists the request as an ‘event’ and creates a service-level agreement in the blockchain landscape to obtain this off-chain data. This SLA contract makes three sub-contracts: a reputation contract assessing the node’s authenticity, an order-matching contract delivering data requests to Chainlink nodes, and an aggregating contract validating all the data points for a single authentic result.
The chainlink node now performs the task of the interpreter. It takes this requested data and translates it from encrypted on-blockchain to understandable off-blockchain programming language via the ‘ChainLink core’ software.
This version of the data is sent to an external API to collect data from the source, following which the data again gets encrypted to on-blockchain language to be sent to the ChainLink aggregating contract.
Now comes the exciting part
Here the ChainLink Aggregation Contract (CAC) validates data from one and multiple sources to muster up all the data. For instance, let’s assume you receive financial forecast reports from five nodes. Out of these, three nodes deliver one solution while the other two nodes have another. The ChainLink aggregating contract recognizes that those two nodes are compromised and rejects their solutions, finally validating from a single source. This way, the ChainLink Aggregating Contract uses numerous data points to school down to one piece of authentic data.
How promising is ChainLink for post-pandemic investment?
The price trend of cryptocurrency for the years 2019 and 2020 has experienced significant upward movement consistently.
The pandemic landscape has experienced a bullish run aggravating the graph of the crypto market. With new features introduced every day, this industry is evolving faster than you think. Thus, it is safe to say that the current year kickstarted on a positive note for investors.
But, a word of caution here.
It is critical to be aware of the innate volatility of a young market like that of cryptocurrency. Investing in ChainLink’s LINK tokens as an asset has potential inbuilt risks. Albeit, the returns on this asset are colossal. The most optimum way to look at it is tactical. Take advantage of ChainLink’s smart contract features that can turn the tables for you. If you support the business model of ChainLink, buying and holding or even staking LINK tokens as an investment in the business could be worthwhile.
Is the idea of LINK tokens still fuzzy? Let’s take a deeper look.
Why should someone buy LINK tokens?
Requesting smart contract holders use LINK to pay Node operators for services. The Chainlink node operator sets the prices based on the requested data demand and real-time market. Besides, LINK is also used against the stake in the network that reinforces the operator’s commitment to the job. The Reputation Contract leverages a node’s associated stake size to match nodes with data requests. Thus, there is a high chance that a more significant stake is prioritized to fulfill requests. The Chainlink network punishes compromised nodes. It taxes the LINK’s stake for dissatisfactory service.
So, when you know that the ChainLinks promises this year, we come to answer yet another question.
Where do you buy Chainlink?
Where can you buy Chainlink online?
Chainlink is enlisted on all key crypto exchanges across the globe. However, if you do not possess a Hardware wallet, you can always opt for an online version.
There are multiple vendors to do this. Making sure you go for a reviewed choice is advisable here. You can buy Chainlink on Moonpay hassle-free.
So, when you have decided to enter bitcoin trading, here’s another thing for you. Is it not beneficial to know how much growth you can expect to witness this year?
Take a look.
ChainLink price prediction for 2021
ChainLink delivered a 500% ROI for any investor back in the year 2019. From $0.30 in January, it showed a steep climb to $4.27 in June.
This year follows the same trend of high growth.
There is a high chance that the market will attract large investors discovering Ethereum and Chainlink. Mass adoption of blockchain as an industry can be witnessed too.
There is a high chance for Chainlink to touch $100 sooner than you realize. So, if you plan to streamline your trading profits, LINK leverage tokens on the Binance exchange are a lucrative option. Unlike leveraged trading, getting into a leveraged position without collateral infiltration is very much possible here.
The best part? You can leave the stress of margin maintenance and liquidation risks.
There is no one word to answer the viability question for you about ChainLink truly. Yes, it has tremendous potential, but it all roots back to your mindset as an investor.
If you are looking for a short-term investment opportunity within the crypto industry, ChainLink is not for you. However, if you are here for the long haul, this technology is something that you can rely upon for investment opportunities.
The crypto movement is massive. If you are an early adopter, the benefits to becoming huge. But, for any activity to reap benefits requires time and patience. Again, it all narrows down to your goals and motivations for investment and whether or not ChainLink is a good option.
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