The Chainlink (LINK) blockchain project based on Ethereum is known for the use of so-called oracles. An oracle shows real-world information on the blockchain, which is necessary for smart contracts. They can represent an essential part of the contract or only allow the basic execution of a smart contract. The potential of smart contract platforms is great and Chainlink is one of the pioneers in this sector.
The current rate of Chainlink offers huge opportunities for many investors. In the still-young history of the project, there is a place for a rather stable rate which was followed by a further significant rise. Therefore, in our today’s article, we’re about to consider the key features of the Chainlink platform as well as to make future price forecasts. Let’s get started!
What is Chainlink: Everything You Should Know
In June 2017, the San Francisco-based SmartContract Ltd. start-up published its Chainlink blockchain project. The middleware based on Ethereum has a goal of connecting smart contracts via several blockchains. A key feature is a connection of off-chain resources to the smart contract platform.
These resources can include data feeds, web APIs, and bank payments, for example. This information is known as an oracle and can serve as an integral part of a smart contract. Chainlink is therefore able to contact external systems to include off-chain data into its own network.
In this context, the oracles act as an external source that can reliably provide certain information. For example, if a smart contract has been concluded between two parties on the outcome of a football bet, a web service that hands match results could act as an oracle. Access to this information is paid by an exchange of LINK tokens — Chainlink’s currency — to the oracle’s operator. An oracle, therefore, has to guarantee the accuracy of the data, enable reliable data mining, as well as ensure confidentiality with respect to contract parties.
But using an oracle can also cause a problem. A key disadvantage of smart contract platforms is an ability to bribe the oracle. Therefore Chainlink uses several oracles that provide an off-chain resource independently. However, this makes a payment more and more complex and expensive. To make a process of finding different oracles much easier, the developers have set up a decentralized marketplace. Here oracle providers can offer their services. Chainlink, therefore, simplifies the use of smart contracts for private individuals and companies by offering a suitable platform for all apps.
Chainlink Forecast 2020: How the Price Will Change?
While 2020 was quite promising for almost all cryptocurrencies, Chainlink in particular benefited from many positive headlines. For example, Chainlink was used on the multi-chain Polkadot platform, while ICON also relied on the oracle’s functionality.
Unlike many other cryptocurrencies or instruments from the traditional financial system, the LINK price changes extremely quickly. Today — as of June 26, 2020 — the price is above the $4 limit again. This is partly due to the media interest in the project.
Many experts consider Chainlink’s technology as a promising project in the future. Many forecast platforms see the LINK token rise in the realistic range in the short and long term. Due to influential partners and a consistently positive reporting, we can agree with this opinion.
What other interesting facts about Chainlink do you know? Just share your opinion in the comments!
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