Today we are focusing on one of the hottest cryptocurrency projects my number 3 of my Top 10 Altcoins 2020 list Chainlink, the predictions for chainlink are great and sometimes just insane ranging from $10-$2000 and even more but before we look into the analysis let?s get to the fundamentals.
What is Chainlink?
Chainlink is a decentralized oracle, an oracle is a data feed that connects blockchains to off-blockchain data, the network provides reliable tamper-proof inputs and outputs for complex smart contracts on any blockchain.
The applications are diverse, affecting transport, telecommunication, weather, healthcare, finance, insurance, gambling industries, governance methods, and much more. In fact, every industry that wants to incorporate real-world data into their smart-contracts.
It all started in 2014 as a startup called ?SmartContract?, Sergey Nazarov, Ari Juels, and Steve Ellis wrote the whitepaper for chainlink, right now the ?SmartContract Chainlink Limited? is located on the Cayman Islands.
Sergey Nazarov-Ari Juels ? Steve Ellis
Some people think Sergey Nazarov is Satoshi Nakamoto the creator of Bitcoin, you can find all pieces of information put together by ChicoCrypto on his latest video here.
Show some love and leave him a like and subscribe to his channel he is doing great work bringing the hottest news for the crypto community.
Chainlink has already partnerships with Google, Intel, and many more companies, and is expanding its network rapidly.
The real value of Chainlink
To really understand the value and benefits of ChainLink and how it functions, you need to understand the fundamentals and interconnected concepts. Let?s start with smart contracts.
Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. Crowdfunding for startups is a good example:
if a certain amount of Ether is deposited into a smart contract by a certain date, then payment will be released to the startup.
if it is not, then payment will be returned to donors.
Because smart contracts exist on a blockchain, they are immutable (can?t be changed) and verifiable (everyone can see them), guaranteeing a high level of trust among parties that they accurately reflect the stated parameters of the agreement and will execute if, and only if, those parameters are met.
For smart contracts to craft agreements beyond those that pertain to data found on the blockchain, they require off-chain data in an on-chain format. The difficulty is to connect outside information sources to blockchain smart contracts in a language that they both understand is one of the main limitations in how smart contracts can be used.
What are the problems that Chainlink is solving?
A single centralized oracle creates the very problem a decentralized, blockchain-secured smart contract aims to solve ?a central point of weakness?. If the oracle is faulty or compromised, how would you know if your data is accurate? What is a good, secure, trustworthy smart contract on the blockchain if the data that feeds it is compromised?
This is where Chainlink comes into play. ChainLink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.
This process, along with extra secure hardware, eliminates the reliability issues that might occur if using only a single centralized source.
How does it exactly work?
The process starts on a smart-contract-enabled blockchain when a smart contract requires data. That smart contract puts out a request (Requesting Contract) for information.
The Chainlink protocol registers this request as an ?event? and in turn creates a corresponding smart contract (Chainlink Service Level Agreement (SLA) Contract), also on the blockchain, to get this off-chain data. The Chainlink SLA Contract generates three sub-contracts: a Chainlink Reputation Contract, a Chainlink Order-Matching Contract, and a Chainlink Aggregating Contract.
Chainlink Reputation Contract
This contract checks an oracle provider?s track record to verify its authenticity and performance history, then evaluates and discards disreputable or unreliable nodes.
Chainlink Order-Matching Contract
This contract delivers the Requesting Contract?s request to Chainlink nodes and takes their bids on the request (when the Requesting Contract does not choose a specific set of nodes), then selects the right number and type of nodes to fulfill the request.
Chainlink Aggregating Contract
This contract takes all the data from the chosen oracles and then validates and/or reconciles it for an accurate result.
Chainlink nodes then take the Requesting Contract?s request for data and use the ?Chainlink Core? software to translate that request from on-blockchain programming language to an off-blockchain programming language that a real-world data source can understand. This newly translated version of the request is then sent to an external application programming interface (API) that collects data from that source. Once the data has been collected, it?s translated back into on-blockchain language through ?Chainlink Core? and sent back to the Chainlink Aggregating Contract.
Here?s where things get really interesting. The Chainlink Aggregating Contract can validate data from a single source and from multiple sources and it can reconcile data from multiple sources.
So, if five nodes deliver one answer from a weather sensor and two other nodes deliver a different answer, the Chainlink Aggregating Contract will know that those two nodes are compromised (or dishonest) and discard their answers. In this manner, Chainlink nodes can validate data from a single source.
The Chainlink Aggregating Contract can repeat this validation process for multiple sources, then reconcile all validated data by averaging it into a single piece of data. Under certain circumstances, not all answers can be averaged but for simplicity?s sake, we won?t go further into depth here.
Why should someone buy LINK tokens?
Besides the speculative aspects of a Cryptocurrency,
Requesting Contract holders use LINK to pay Chainlink node operators for their work. Prices are set by the Chainlink node operator based on demand for the data they can provide and the current market for that data.
Chainlink node operators also use LINK to stake in the network.Node operators must deposit LINK with Chainlink to demonstrate their commitment to the network and incentivize good service.
The Chainlink Reputation Contract considers the size of a node?s stake (among other criteria) when matching nodes with requests for data. Nodes with a greater stake are therefore more likely to be chosen to fulfill requests (and thus earn LINK for their services). The Chainlink network also punishes compromised, faulty or dishonest nodes by taxing their stake of LINK for poor service.
What are Chainlink’s achievements?
The data source aside, Chainlink has created a way to provide accurate data to smart contracts on smart-contract enabled blockchains reliably, and efficiently.
Why does Chainlink need a token?
The LINK token is required at the protocol level. The technical reason here is typical ERC20 tokens don?t allow for the transfer and execution of a smart contract in a single transaction, ERC677 does, with transferAndCall. When a request is made, the payload of that request is sent along with the token transfer (payment for the node operators), so that the node operators know exactly how much they’re being paid for that request and can respond immediately, knowing they’ll be paid for their work.
Why is LINK the only token that can be used for the purposes of payment to node operators?
It separates the security of the Chainlink network from the market volatility of some other asset, unrelated to the network. If it were ETH, then the security of the network could be reduced if ETH?s market volatility didn?t work in our favor. That also wouldn?t work out very well in multi-chain environments where the node operator would need different prices for the same amount of work on every supported chain. If it were some stable coin, then the security of the network would be based on the viability of that project. Further, we would lose the transferAndCall ability, which would add more complexity to our smart contracts, and more complexity usually means more expensive transactions.
Chainlink 500% ROI in 2019
Link was one of my favorites for 2019 with over 500% ROI (Bitcoin had nearly a 100% ROI for 2019), the price of Chainlink was near $0.30 on Jan. 2019 peaking in just over $4.27 on June 2019 and was ending the year with a price around $1.80 Dec 2019. 2020 started very nice than a short dip in march, after that the price slowly gained, I made my Top 10 Altcoin article some days before the last dip (marked with the red arrow) from this time on link started his bullish movement to $8 and above, probably not because of my article but who knows, maybe some whales are reading my blog ;D
chainlink price coinmarketcap.com
Chainlink price prediction 2020
Crypto-rating.com determined the year-by-year price change of Chainlink with their own AI-enabled algorithm, they are predicting In 2021, Chainlink will be priced around $19.82, in 2022 $37.22, in 2023 $73.99, in 2024 the price should move to $147.72 and establish a foothold there, and finally, in 2025 the price of Chainlink will reach $295.08.
Digitalcoinprice.com thinks chainlink will peak in 2024 with around $34.3 their prediction is a bit more pesemistic with $14,36 for 2020, 2021 $20.49, 2022 $25.56, 2023 $30.6, 2024 $34.3,and only $26.12 for 2025.
Walletinvestor.com is a popular website that does technical analysis-based price predictions of various cryptocurrencies. According to them, Link should reach a price of $10.33 in 2020(image above) and $20.95 in 2025.
A very insane price prediction came from BitBoy Crypto he is thinking that Chainlink will flip with Ethereum, he thinks that Chainlink could get as big as Apple or Amazon and could reach a price of $900 to $2000 per LINK.
So here are my honest views on the Chainlink price prediction 2020.
I think $2000 per link in 5 years is a bit too optimistic, $900-$1000 is not impossible but only with a very long holding bull run, in my opinion:
If Link can hold the $8 mark for a while we will see this year the $10 if FOMO kicks in Chainlink maybe could reach $12-$15 by the end of 2020,
If Link doesn’t hold the $8 mark we maybe see lower lows again and correct back to around $4?5,
but even if the price is in the short term volatile I see a great future for Link their partners and projects are great and are growing, the awareness of chainlinks importance for smart contracts in the blockchain space is growing too, my 5-year prediction is around $100 if a long holding bull run kicks in it could reach higher prices.
In my opinion, Chainlink is a must-have for every crypto investor I am accumulating Link now over the last year, for 4 months now with a weekly savings plan as long as the price is under 10$. I don’t care about the short term price volatility because I think we are just at the beginning of the story.
Cryptocurrencies are volatile and complicated, and there are many factors that can contribute to the growth or decline of their price.Please make your trades cautiously and don?t go all in.Please make sure you always activate 2FA* on the Exchanges.Do not keep all of your Coins on the Exchange, store them on a Hardware-wallet like a Ledger or Trezor.
Where can I buy Chainlink?
Chainlink is listed on all major Exchanges, If you already got a Hardware-wallet like Ledger or Trezor I would recommend:
Changelly this exchange has no welcome bonus but is working worldwide and is one of the securest because Changelly itself is holding no funds everything gets send directly to your Ledger or Trezor hardware wallet, Changelly is very easy to use, and has low fees.
If you don?t have a Hardwarewallet I would recommend:
US: KrakenCoinbase (Hint: Get $10 after investing $100 on Coinbase)EU & UK: Bitpanda (Hint: Get 5? for free after a quiz >Bitpanda Academy)Asia: Kucoin (Hint: Get $5 after trading $10 on Kucoin)
Please make sure you always activate 2FA on the Exchanges.
(read more about my top 5 crypto exchanges 2020 below)
Top 5 Crypto Exchanges 2020
I know that anyone can make a list of Crypto Exchanges.
But only a few people explain why they choose?
Thanks for sharing!