Former Google boss thinks this 1-crypto can hit the big time

There is a sense of buzz in the crypto world Chain link (LINK 0.69%)a former crypto darling of 2020 who, like so much of the crypto world, took a beating in 2022. Chainlink now has ambitions to lead the coming Web3 revolution, and it has found a prominent evangelist to help spread the word: previously Google (now) Alphabet) CEO Eric Schmidt.

Appearing at Chainlink’s SmartCon conference in New York City, Eric Schmidt, who led Google from 2001-2011 before becoming executive chairman, led a fireside chat with Chainlink Labs co-founder Sergey Nazarov. Together, they discussed how Chainlink fits into the future of blockchain and crypto. Schmidt, who became an official strategic advisor to Chainlink in December 2021, believes this potential breakout crypt has enormous potential when it comes to the Web3 revolution.

Oracles and smart contracts

It may be surprising to some, because many casual crypto investors have probably never heard of Chainlink. That is primarily because Chainlink is not a Layer 1 blockchain-like Ethereum, Solana , Avalanche, or Cardano. Instead, Chainlink is a decentralized blockchain oracle network that feeds off-chain real-world data into on-chain smart contracts.

Image source: Getty Images.

It basically means that Chainlink takes data from external sources in the real world and then finds a way to deliver that data to blockchains in a timely and secure manner. Each data source is considered to be an “oracle”. The most common data sources are asset prices, but you can also have oracles for just about anything, including weather data.

Until recently, Chainlink has been primarily used for decentralized finance (DeFi) because oracles are critical to being able to buy, sell, trade and exchange digital assets without the need for an intermediary. Data is simply sent to a smart contract, which can then be executed automatically.

A new growth strategy for Chainlink

One reason Chainlink added Eric Schmidt as an advisor was presumably to raise the profile of the crypto and add new technology partnerships. And that seems to be what is happening with Chainlink. The number of oracles at Chainlink has increased by 30% since January, and the number of projects using Chainlink has increased to over 1000. Recent partners include Coin base and the SWIFT payment network. The plan now is to scale Chainlink further by offering premium data services.

The big idea is for Chainlink to become the “AWS of Web3.” A longtime veteran of the Web 2.0 world, Schmidt views Web3 (or Web 3.0, if you prefer) through much the same lens. As Schmidt sees it, there will be a few titanic giants in the Web3 world, each of which will do one thing very well. Chainlink will work much like AWS, the B2B entity of Amazonwhich offers all kinds of infrastructure and data support for large companies.

Hype vs. reality

Of course, as Schmidt warned during his fireside talk, there is still much to be explored in the world of blockchain and crypto. For example, Schmidt says that smart contracts, in their current form, are “poor in their capabilities.” And he believes that all the buzz about Web3 “came a little ahead of reality”. So it’s not like Chainlink is going to become AWS for Web3 overnight.

However, from a marketing perspective, adding Web3 to the mix is ​​smart. If you compare how Chainlink describes itself now (as a Web3 crypto) to how it described itself a year ago, the change is dramatic. When Chainlink brought Schmidt on board as an advisor, the press release called Chainlink “a secret ingredient for unlocking the potential of smart contract platforms.” That idea just wasn’t big enough.

Chainlink is a purchase

Schmidt is obviously a smart guy. During his tenure at Google, he oversaw the launch of innovative products that you probably still use today: Gmail, Google Maps, and Chrome. And in the process, he became one of the 100 richest people in the world.

If he thinks that Chainlink will hit it big one day, I’m more than willing to ride his coattails. Although Chainlink is down more than 85% from its all-time high of $52.88, it is definitely a crypto that should be on your investment radar for 2023.