A whoop $100 for LINK Price?
What is Chainlink (LINK)?
Chainlink is unique compared to other blockchain projects. The business model is solely focused on the creation of smart contracts for the outside world. Chainlink hopes to decentralize the Internet to bridge the gap between blockchains and the applications that exist in the real world.
The Chainlink system has a decentralized network of Oracles, so that smart contracts can safely interact with off-chain platforms. Founded in September 2014 by its CEO Sergey Nazarov and CTO Steve Ellis.
Chainlink node operators extract data from off-chain systems and convert it into blockchain compatible formats. They are awarded LINK cryptocurrency — an ERC-20 token based on Ethereum. According to the developers, the price of LINK is closely correlated to the number of node operators.
Since both Oracle and Chainlink work simultaneously for data conversion, the working might sound arduous. But in reality, it involves just 3 steps! Beginning the process, a smart contract requests data when required. The LINK protocol receives the request and generates a Chainlink Service level Agreement.
Meanwhile, the agreement will further generate 3 other contracts. One for reputation, which will check the Oracle and verify it. Secondly, the next contract acts as a bridge between the request contract and the nodes that take the requests.
The translation of off-chain to on-chain data and vice versa is taken care of by the Chainlink Core. The request is first converted to an off-chain form so that the real-time information can read the request and easily fetch the required data via an API. After the accurate information is at the nodes, they are further transcribed to on-chain language and delivered to the nodes! Thus, the Chainlink protocol increases transparency and improves the reliability and accuracy of the data that enters the blockchain!
The LINK token powers the entire process and acts as the network’s fueling agent. That is, Chainlink nodes are paid in LINK tokens for lending their services in fetching the real-time data into the blockchain. But before that, each node must stake LINK tokens in the network promising to offer accurate services.
Chainlink Price Prediction 2021
Chainlink continued to trade at $11.45 during January. Surprisingly, the price spiked to $51.17 to hit a new high on May 2nd. When the market collapsed on May 19, the LINK price wiped down from $36.8 to $21. However, post this point, the price has been gradually surging.
It has drawn a lot of attention and attracted new users to their project. The fundamentals look healthy for many analysts. The altcoin has been proactive in launching its products and developments well within time, growing consistently. Partnering with prominent companies like Google Cloud, the LINK price may soar significantly to blow at $37.008 by the year-end.
On the other hand, considering all market sentiments and news playing hide and seek, major setbacks can arise. If any other unforeseen circumstances or competitor coins give a tough road ahead, the altcoin price might plummet to support levels at $15.988.
After the market crash in May, with the normal buy and sell pressures price reached $25 by August end. If the network continues the same trend by the end of 2021, $42.44 can be easily achievable. If the currency follows an uptrend like in January the price would be $75.24. And if it falls into a bearish trap the price may dump to $27.08.