Blockchain has witnessed an increase in the popularity since Bitcoin which is the first digital currency that was launched in 2010. Blockchain carries a number of advantages that include decentralized networks and security. The rising demand for a decentralized currency is the result of the rise in popularity of digital currencies including Bitcoin. But blockchain also has disadvantages. These systems are deliberately shut off from the rest of the world which is good for integrity and security, but they can also limit the input data that can be accepted by them. This is where Chainlink comes into action.
What Is Chainlink?
Chainlink technology is a decentralized oracle network that has been formulated to play a crucial part in the real life implementation of blockchain technology. The motive of this network is to offer input on many external sources of data.
Even though blockchain is great at its job of offering a secure, decentralized ledger for the transaction of digital payment, it is not so good at taking input about matters that are occurring outside the blockchain. There are multiple off chain forces that affect the market, that include credit cards, fiat currency, and also sports and weather scores. But as an oracle of the decentralized network, Chainlink can offer you inputs of what is called smart contracts.
These smart contracts enable the system to respond to a variety of inputs. As the first digital currency, Bitcoin and its following blockchain have the ability to process a small range of these inputs. But a comparatively newer blockchain like that of Ethereum has a wider range of these inputs. That includes help for programmable smart contracts.
The fact that needs to be noted is that Chainlink was launched based on the Ethereum blockchain in 2019 but it is supposed to be agnostic which implies that it has the ability to operate with other blockchains as well.
What Is LINK? What Is Its Worth?
LINK is the native token of Chainlink. The token has been designed to ensure the finance of the growth of the project and is similar to Ethereum (ETH) and Bitcoin (BTC). Both of these digital currencies operate on their own blockchain. Just like ETH and BTC acts as an extra mile for the users to mine, LINK does the exact job.
The LINK token that was launched in 2017 was priced under 20 cents. It remained below $1 till 2019. From 2020, the price of LINK started to increase rapidly. In fact the price of LINK increased from $2 to $36 within a year.
Despite the meteoric rise of LINK, even though it has decreased from it’s all time high of $36 it has not been successful to reach that level again. In fact, LINK witnessed a price drop of nearly $10 by March 1, 2021. So it is not possible to do Chainlink price prediction because of its fluctuating characteristic.
Should You Invest In LINK?
By this time you understood that the price of LINK is highly volatile just like other digital currencies. Therefore it would be your best decision if you invest in LINK only to extend support to the underlying technology that is being used. Or else the high fluctuations will be too much for investors to bear.
Even after so many drawbacks, Chainlink appears to be a crucial technical development as digital currencies continue to grow. Having such an oracle in place will be the key to the stability of the long term and the viability of cryptos in general. Therefore, LINK can become a sound investment option if you have faith in the Chainlink technology and believe that this will one day become a decentralized, and most widely used oracle network.
Frequently Asked Questions On Chainlink
1. Will Chainlink Reach $100?
According to Chainlink news, the coin is predicted to reach a minimum of around $27.05 in 2022, and thereafter, it is expected to trade at $34.26 in 2023. In the scenario of another bull run, the price of Chainlink will definitely rise up and reach $100.
2. Is Chainlink a good or bad investment?
Chainlink can become a sound investment option if you have faith in the Chainlink technology and believe that this will one day become a decentralized, and most widely used oracle network.
3. Why is Chainlink so good?
Chainlink is a decentralized oracle network that has been formulated to play a crucial part in the real life implementation of blockchain technology. The motive of this network is to offer input on many external sources of data.