Why Chainlink is important to world of cryptocurrency

In 2010, Bitcoin, the first cryptocurrency, was launched. Since then, blockchain has seen an astronomical rise in popularity. Blockchain offers security and decentralization, among other benefits. Bitcoin and other cryptocurrencies have gained worldwide popularity because of the demand for a decentralized currency. 

There are, however, some limitations to the blockchain. Due to their inherently closed nature, these systems have fewer inputs than open systems, which is good for security and integrity but also limits their ability to accept data. It is, therefore, necessary to build a sort of bridge between these systems and the rest of the world to see what is going on. 

Nevertheless, the input cannot occur from a single source if the system is yet to function. why? This would contradict the very spirit of blockchain since it would rely on one central source for data. Chainlink can be very useful in solving this problem, as we shall see. 

What is Chainlink? 

Chainlink is a decentralized Oracle network that plays an important role in implementing blockchain technologies to practice. Using this network, we can obtain information from a range of external sources. Even though It’s not so good at taking input for things that happen outside the blockchain, blockchain is great at what it does which is provide a decentralized and secure ledger for digital transactions. 

Many markets are influenced by several off-chain factors, which includes credit cards, fiat currencies, and even sports scores and weather patterns. Smart contracts can be generated using Chainlink’s decentralized oracle network. Smart contracts enable a system to respond to multiple inputs. 

Bitcoin, as the first cryptocurrency, and the blockchain underlying it can only process a limited amount of this input. Ethereum, for example, has a broader range of applications. These include the ability to program smart contracts. In that regard, Chainlink is a blockchain-agnostic protocol, launched in 2019 on the Ethereum blockchain. As a result, customers can access it using other blockchains as well. 

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What is LINK and how much is it worth? 

The native token of Chainlink is LINK. In a similar vein to Bitcoin (BTC) and Ethereum (ETH), the token will help fund the project’s growth. Bitcoins and Ethereums both operate using blockchains. In the same way that BTC and ETH incentivize users to mine, LINK does the same. LINK tokens launched in 2017 for under 20 cents and remained under $1 until 2019. 

A steep rise in prices began in 2020. Price increased from $2 to $36 on Feb 2021, from early 2020. Even though LINK soared to a high of $36 last year, it has dropped since and hasn’t yet reached that level again. Since March 1, 2021, the price has dropped to nearly $10. 

Should buyers invest in LINK? 

Despite its huge gains since early 2020, LINK’s value remains volatile. Therefore, investing in LINK would only serve to support the technology. As a result, most investors may find the high degree of volatility difficult to tolerate. 

As cryptocurrencies continue to evolve, Chainlink looks to be an important technology. Chainlink is an oracle that will be essential to the long-term viability and stability of the cryptocurrency. Therefore, LINK can become a solid investment if you believe Chainlink will be the most widely used decentralized oracle network in the future. 

Bottom Line 

Chainlink is the network of the future if you have the patience to watch your investment grow. If you don’t have the patience to wait for this token to rise, then you can purchase something else. 

 

 

 

 

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