ChainLink: A Blockchain With Undeniable Value (LINK-USD)

Summary of the assignment

ChainLink (LINK-USD) is a unique blockchain that bridges the gap between crypto and the real world. Its unique approach to oracles makes it an excellent tool for smart contracts to securely facilitate value.

Given the initial rally we have seen in LINK, I believe the following bull run LINK could exceed $80, giving this coin 10x return potential.

Technology

ChainLink is the first decentralized network of oracles. An oracle is the software that allows external data to enter a blockchain.

As we know, blockchains are secure due to their decentralized and immutable nature. They allow anyone to participate in the blockchain, and the data is continuously stored and validated.

However, blockchains face a hurdle when trying to expand outside of their own network. This is usually done through smart contracts, which are applications that harness the power of the blockchain. But these applications sometimes rely on external data. This is where oracles come in and where ChainLink changes the game.

Oracles are the vehicle through which external data is introduced to blockchains. However, if these oracles are not inherently secure, security breaches can occur. Oracles are traditionally centralized, but ChainLink provides a network of decentralized oracles that connect off-chain data to on-chain smart contracts.

There are three more key components ChainLink’s function; On-chain oracles, off-chain oracles and ChainLink Node.

ChainLink’s on-chain oracles are smart contracts that connect requests for information with the correct off-chain oracles. These contracts serve to collect data, check the reputation of oracles, and match the correct requests.

Off-chain oracles are those responsible for feeding information to the blockchain. They correspond to validators/miners in other blockchains. These oracles stake LINK to act as oracles, and receive LINK in return for performing this service. ChainLink keeps oracles honest by validating data against each other and penalizing oracles with incorrect data. It also sends information requests to a number of validators to ensure it is accurate.

ChainLink is one of the most exciting blockchains because it really helps bring the utility of crypto to the real world, especially as we approach a more interconnected economy through the development of the Internet of Things.

Ecosystem

ChainLink has many different use cases, thanks to the way it leverages real-world data.

In the DeFi world, LINK allows for the creation of more secure smart contracts that rely on real-world data such as stock/crypto prices and returns. Kornmagasin is an example of this. A cross-chain lending platform that uses LINK.

Insurance is another area of ​​use for ChainLink. Blockchain technology can facilitate the handling of data that insurance companies need, and ChainLink can provide accurate and timely information from the real world. Ensuro is doing this right now.

And it is also worth mentioning ChainLink can be used as a bridge between traditional systems and the blockchain. LINK can be connected to any blockchain, and this can be used by data providers, websites, networks, etc.

Tokenomics

The LINK token is used as a reward for paying LINK oracles. At the same time, these oracles must stake LINK to show their commitment to the network and be able to act as oracles.

The good thing about LINK is that the supply is limited to 1 billion tokens:

This makes LINK an ideal investment, as it has a limited supply, but it serves a growing market with many uses, meaning demand should increase in the future.

Price forecast

At a basic level, LINK has some very interesting applications. On a technical level, I also see evidence that the price may soon explode.

Using Elliott Wave Theory, I predict that LINK may reach a target price above $80. The rally we saw take place in 2021 was wave 1, and we have now corrected in wave 2, which went all the way down to the 88.7% retracement. Over the last few weeks we have seen a sharp reversal. Furthermore, the weekly MACD has made a bullish crossover, and the RSI also looks poised to climb higher.

While such an increase seems extreme, even for a cryptocurrency, consider that there are compelling arguments beyond EWT to support this price target.

The global IoT market is projected to grow at a CAGR of 26.4% annually from now to 2029. If we were to assume a similar growth rate of ChainLink and translate this into the token’s price rise, LINK could be worth around $80 by then.

We also have to consider the fact that LINK was already trading at almost $60 at the height of the crypto bull market. When the crypto cycle reaches another peak, LINK should be significantly above this level.

With this technology, it may take some time, but the potential for high returns is there.

Risks

We also have to consider that ChainLink, while a leader in this space now, will have to deal with more competitors as this market grows. Currently, there are other similar initiatives such as Band Protocol, API3 and WINKlink.

The future of crypto is still unclear and we still don’t know what the market will look like in 10 years. However, a good thing about ChainLink is that it is compatible with any blockchain, so even if the dominant blockchains change, LINK will be able to interact with them and provide value.

Remove

ChainLink is one of the biggest cryptocurrencies today, and for good reason. There are 1000s of applications that use it ChainLink every day. This blockchain brings real value to the real world, which in my book makes it a strong contender to outperform the upcoming crypto bull market.