Chainlink is a decentralized oracle network that lets smart contracts interact with real-world data in a safe ecosystem and the ones existing outside the blockchain networks. Every Chainlink oracle network comprises several independent nodes that capture data from many independent data providers and collect the data at one point to deliver it on-chain so that smart contracts can use it – unlike a monolithic network, being a blockchain. However, it is a framework or infrastructure used to build blockchain-agnostic oracle networks to broaden the capabilities of blockchains and layer-2 protocols simply.
Chainlink has a very flexible architecture that enables highly configurable oracle networks that can consist of any selection of node operators and data providers. A flexible framework is the building block that can collect with any block, retrieve data from any API, and connect with existing systems. The flexible design of Chainlink can provide any type of data and computation to the smart contract application that is operating on all the blockchain networks. It uses different network parameters, including update frequency, fee payment amounts, etc. DevOps infrastructure providers, premium data providers, and leading enterprises are the operators of Chainlink nodes. They supply smart contracts and access to cryptographically signed data to guarantee additional security.
Chainlink (LINK) Fundamental Analysis
Chainlink is a blockchain abstraction layer that allows globally connected smart contracts. It enables the secure interaction of blockchains with events, external data feeds, and payment methods through a decentralized oracle network. Hence, it also provided complex smart contracts with critical off-chain information to let it become the dominant form of digital agreement. It has a large open-source community of data providers, operators, researchers, developers, and many other technical team members. The main focus of this team is to ensure and guarantees decentralized participation to all node operators and users who want to work for the betterment of this network.
Chainlink provides smart contracts with access to real-world data and off-chain computation to highly flourish the capacities of smart contracts. It maintains security and reliability and ensures inherent to blockchain technology. So, it is an industry-standard oracle network. It also has a proven ready-made solution for integrating pre-built and timely security of millions of smart contracts for decentralized applications. It is also a reliable tamper-proof network that uses decentralization, premium data, trust nodes, and cryptographic proofs for connecting very accurate and available data to any smart contract. The decentralized meta-layer of oracle networks of Chainlink allows smart contracts to uninterruptedly create and use an arrangement of decentralized services that unifies disparate technologies, fastens the development of the decentralized app, and enables cross-chain functionality.
How Chainlink Works
Chainlink secures the proof-of-stake (PoS) consensus mechanism, as it is an Ethereum-based ERC-20 token. This system depends on the amount of staked tokens to select node validators, unlike Bitcoin, which utilizes the proof-of-work (PoW) consensus. The aim behind the proof of stake mechanism is the concept of reducing power consumption. This is why it is getting popular due to less electrical energy consumption and easy scalability.
The Grant Program of Chainlink marks with its secure off-chain computation, community grant program, integration grants, social impact program, and research program. It uses a decentralized network of Keeper nodes for automatic contracts and decreases the risk of centralization and manual interventions. It also rewards its developers as they secure the nide infrastructure, increase the amount of on-chain data, and unite the network with other new systems. The program encourages teams and projects worldwide for technical services from Chainlink. The team behind the program is also working on social and non-profitable programs to increase the development of hybrid smart contracts and make the world economically fair. Their funding specialists and academics conduct and publish unique research to improve the security and performance of the Chainlink Network.
Tokenomics
LINK token was first launched on September 19, 2017. The price of the token at the presale offering was $0.9. In addition, the participant investors received a bonus of 20%. At a subsequent public sale, the token got sold at $0.11, combined with the presale, dispersed 350 million tokens.
All the payments and work are made by LINK token in this network. Link as a payment token pays for the Chainlink node operators to provide them with oracle services. When it acts as a work token, node operators as collateral stakes them for providing oracle services. The staking in LINK is optional, and smart contract creators request oracle services to specify them. If they are unable to provide good oracle services, they lose a node operator’s LINK. The more the contract creators are to use with collateral, the more the LINK will be staked.
The subsequent public sale sold LINK at $0.11 per token. Combined, both sales dispersed 350 million LINK. A total of 1 billion LINK tokens were there in initial issuance. Among those, 35% was allocated to each token sales investor, node operator, and ecosystem rewards. The remaining 30% were for SmartContract.com, the parent company of LINK.
In September 2017, at the time of the initial coin offering (ICO), Chainlink had the maximum supply of 1 billion LINK tokens. At that time, the price of Chainlink was $0.11, and a sale of 350 million LINK tokens took place. Therefore, the current circulating supply is 467 million.
Chainlink Future Plans
Chainlink tries to improve the Oracle problem as this inherent limitation of such networks refrain them from connecting to off-chain networks or external data resources. They also want to strengthen a wide range of next-generation use cases and smart contract applications. To achieve this, Chainlink 2.0 works to advance oracle technology in seven main fields, which are as follows.
Hybrid smart contracts: They use securely composing on-chain and off-chain computing resources to grow the skills of smart contracts.
Scaling: They facilitate the decentralized oracle networks to gain the latencies and throughput for layer-2 solutions, Web2 systems, and high-performance blockchains.
Privacy: They are trying to speed up the integration of Blockchain transparency and confidentiality to protect sensitive data and computations.
Fairness: They will provide support to sequencing in a transaction fair to users while avoiding ways of value extraction by bots and miners.
Removing complexity: They are trying to provide simple functionality to users and developers so that they do not need to be familiar with the complexity of the protocol and system.
Trust-minimization: They will form a trustable layer for support of smart contracts and other oracle-dependant systems through decentralization, guardrails, and cryptographic guarantees.
Crypto economic security: They will make sure to have strong economic incentives by nodes to help them behave well even in worse situations.
Chainlink (LINK) Price Analysis
The Chainlink price is currently $11. It has a market capitalization of $5 billion, and CoinMarketCap has ranked it as #27. The price has increased two hundred times more since LINK launched. While it is yet to fulfill its potential, LINK is currently bearish in the medium term.
Rank: 18
Crypto academy Chainlink (LINK) Price Prediction
The price of Chainlink has proven to be one of the most promising assets over the years. Hence, we at Crypto Academy can assume that it is going to be a very bullish price in the near future and in upcoming years.
Chainlink (LINK) Price Prediction 2022
More than nineteen thousand Chainlink Node Operators are currently working to transform the blockchain into a completely decentralized oracle network. Since its price trends are staying bullish, so the forecast for the current year is also optimistic. This may probably lead to the minimum price of $27 by the end of 2022. However, with the upcoming developments in the LINK ecosystem, the maximum price may hit $35, with the average trading price of $30.
Chainlink (LINK) Price Prediction 2023
During the past years, Chainlink has experienced a lot of adoption by investors. As a result, LINK has gained momentum in prices and is broadening its community acceptance making its highest price of about $50. This could be a new all-time high, according to most price predictions. This means that price is going to reward in the long term, as there is no rival to this crypto in competition with its functionality. In these situations, the lowest possible price of Chainlink is $35 at the end of the year, and the average price is $40. However, in better circumstances, Chainlink can have an elevated price of $45 from the current price.
Chainlink (LINK) Price Prediction 2024
We all know that Bitcoin halving is going to happen in 2024. There can be jaw-dropping results of its price to reach as high as $60, with an average of $45. By observing all the possibilities of the market and their unpredictable circumstances, the minimum price can go down to an understandable minimum price of $40.
Chainlink (LINK) Price Prediction 2025
Chainlink seems to rise in its long-term price forecast for Chainlink. It may surpass all the expectations to win all the contemporary problems surging to a maximum of $70 by the end of 2025. Being an ERC-20 token, its success is also linked with Bitcoin and Ethereum. Even if the price stagnates for some time, the minimum price can be $60. The team performance, technical potential, and large-scale partnerships may not let the price stay stagnant for a longer time, and infusion of massive funding, the price may ultimately increase. The average price might continue to be $65.
Chainlink (LINK) Price Prediction 2026
Suppose the price-determining factors act favorably, as they seem to be. In that case, the asset may perform excellently and unexpectedly well by touching the maximum price of $100 in the next five years. However, with some limitations and unseen obstacles, the minimum price can be $80, while the average price can remain at $90. This can be due to its capability to spread broader in smart contracts and transactions.
Chainlink (LINK) Market Price Prediction
Famous websites and crypto-related platforms have mixed opinions regarding the future of Chainlink, and we have mentioned some of them below.
Wallet Investor
They have considered LINK a bad and high-risk 1-year investment option if you are looking for an investment with good returns. According to them, ChainLink’s price of about $17 today can devalue in the future.
Priceprediction.net
They expect the LINK maximum price to reach $22.56 by the end of 2022. After that, its worth may continue to increase due to the shortage of tokens, and the average trading price of Chainlink (LINK) may reach $20.58 in the year 2022. They have estimated the five-year plan that the coin can effortlessly hit the $95.34 mark as its value increases. Hence, their special experts and analysts think that Chainlink may reach the highest price of $723.23 in 2030.
Gov.capital
They predict the future price of the asset to be $46 in a year, which is an increase of 186%. So, if you are investing $100 in 2023, your present investment can be equal to $286 in 2023. Also, in five years, they expect its price to be $236.
Digital Coin Price
Digital Coin Price has predicted the LINK’s minimum, average and maximum price in 2022 to be $20.77, $21.41, and $23.64. In 2025, the minimum value can be $29.15, and the maximum price can be $37.44, with an average trading price of $32.84. In 2030, the price of Chainlink can reach the minimum worth of $75.56, the maximum level of $80.71, and the average trading price of $76.88 in 2030.
How to buy Chainlink coins?
Using fiat currency, another major cryptocurrency, you can buy Chainlink’s altcoin from an altcoin exchange, such as Gate.io, Binance, eToro, Coinbase, Kraken, etc.
Step 1: Create an account:
You should first create an account on fiat to a cryptocurrency exchange, such as Uphold and Coinbase. Then, choose one of them according to your preferences and verify your identity using your email address and phone number.
Step 2: Select a payment method.
Then, you should go for selecting a payment method among credit cards or bank transfers to submit fiat money to your account to buy cryptocurrency. You can select one according to your needs or the area you live.
Step 3: Buy Bitcoin
After selecting a payment method and fulfilling the requirements of your crypto trade, you should buy the cryptocurrency. Tap on the ‘Trade’ button and choose Bitcoin for the first crypto trade. Confirm your purchase.
Step 4: Transfer BTC to an Altcoin exchange.
Now, look for an altcoin exchange that supports the trade of both Bitcoin and Chainlink, such as Gate.io, to buy LINK using BTC. It is a reliable and widely used exchange. After the KYC process, copy the address from Gate.io and paste it to Coinbase to transfer Bitcoin. Then send the BTC after selecting it from the list of assets. You will receive a confirmation message after the arrival of your Bitcoins.
Step 5: Buy Chainlink
Once you receive your BTC at Gate.io, choose the pair of LINK/BTC pair for trade. After that, carefully read the terms and conditions of the platform and then the price chart of LINK/BTC visible on the screen. If you are completely satisfied with the possible outcoming amount of LINK after the trade, fill in the required information in the form and click on the “Buy LINK” button. Finally, confirm your purchase to get your tokens.
Frequently Asked Questions (FAQs)
Is LINK a good investment?
Yes, LINK is an excellent investment, and its current price of $17.40 can lead to $30 by the end of the year.
Can LINK reach $100?
Yes, it is most likely to reach $100 in about four years due to the massive adoption it is continuously receiving.
Where to buy LINK?
You can buy LINK tokens from Gate.io, Binance, eToro, Coinbase, Kraken, etc.
Takeaways
- Chainlink is a decentralized oracle network that lets smart contracts interact with real-world data in a safe ecosystem and the ones existing outside the blockchain networks.
- Every Chainlink oracle network comprises several independent nodes that capture data from many independent data providers and collect the data at one point.
- Chainlink tries to improve the Oracle problem as this inherent limitation of such networks refrain them from connecting to off-chain networks or external data resources.
- LINK is an excellent investment.
- Its current price of $17.40 can lead to $30 by the end of the year.
- The asset may perform excellently and unexpectedly well by touching the maximum price of $100 in the next five years.
- It is most likely to reach $100 in about four years due to the massive adoption it is continuously receiving.
- You can buy Chainlink’s altcoin from an altcoin exchange.
- You can buy LINK tokens from Gate.io, Binance, eToro, Coinbase, Kraken, etc.