Chainlink: Bridging the Gap between Blockchain and Real-World Data
Chainlink is a decentralized oracle network that facilitates the interaction between smart contracts on blockchain platforms and real-world data, events, and systems. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. However, these contracts lack the ability to access data outside the blockchain. That’s where Chainlink comes in.
There are very interesting companies outside of bitcoin and ethereum and one of them is Chainlink (LINK). Let’s get to know her a little more and analyze her TA to see what her future could hold.
The Need for Oracles: Chainlink was created in response to a significant problem in the blockchain space. While blockchain technology is excellent for executing self-executing smart contracts, these contracts are isolated from the real world. They lack the ability to interact with external data, events, or systems. This limitation was a hurdle to the broader adoption of blockchain technology.
Sergey Nazarov and Steve Ellis: Sergey Nazarov, the CEO of Chainlink, and Steve Ellis, the CTO, recognized this problem and decided to address it. They founded Chainlink with the goal of providing a decentralized and secure solution for bringing real-world data into smart contracts.
Chainlink acts as a bridge, providing reliable, tamper-proof data to smart contracts, making them more useful and capable of interacting with the external world. It does this by utilizing a decentralized network of nodes known as “oracles.” These nodes retrieve data from various sources, such as APIs, IoT devices, and more, and deliver it to the smart contracts in a secure and decentralized manner.
The Chainlink network offers several benefits, including:
Decentralization: Chainlink’s network of nodes is distributed, making it resistant to central points of failure.
Security: Data delivered by Chainlink oracles is highly secure and tamper-proof, ensuring the integrity of smart contracts.
Reliability: The network aggregates data from multiple sources, ensuring high accuracy and availability.
Versatility: Chainlink can be used with various blockchain platforms, making it a widely adopted solution.
Interoperability: It allows smart contracts to interact with various data sources, payment systems, and external APIs.
Chainlink’s versatility and interoperability make it a popular choice for blockchain developers. It can be integrated with multiple blockchain platforms, and its ability to interact with a wide range of data sources and external systems gives smart contracts unprecedented capabilities.
As blockchain technology continues to evolve and gain mainstream adoption, Chainlink’s role in facilitating the connection between blockchain and real-world data becomes increasingly essential. It has positioned itself as a crucial component of the blockchain ecosystem, enabling smart contracts to reach their full potential.
Development and Key Milestones:
Mainnet Launch: Chainlink’s mainnet, which is the production-ready blockchain, went live in May 2019. This marked a critical milestone for the project.
Partnerships: Chainlink has formed partnerships with various blockchain projects, including Ethereum, to integrate its oracle technology. These partnerships have expanded the use cases and adoption of Chainlink’s services.
DeFi Boom: Chainlink gained substantial attention during the decentralized finance (DeFi) boom in 2020. Its oracles played a crucial role in providing price data and information to DeFi applications, contributing to the sector’s growth.
Integration and Adoption: Chainlink’s technology has been widely adopted across multiple blockchain platforms. It is used in various applications, including price feeds, gaming, insurance, supply chain management, and more.
Smart Contract Growth: As the DeFi and blockchain ecosystem has continued to expand, Chainlink’s importance has grown, and it’s now considered a fundamental component for many blockchain-based applications.
The Ongoing Journey:
Chainlink’s journey continues, with a focus on enhancing its technology, expanding partnerships, and meeting the growing demand for secure and reliable data delivery to smart contracts. Its ongoing developments and the broader blockchain and cryptocurrency landscape will shape its future.
TA for Chainlink (LINK)
In the long term, this crypto has managed to climb from USD 0.36 to USD 50.00.
May 2021 at its peak.
Really a big rise in the latest spring crypto rally. Don’t forget that the crypto world really has a lot of volatility.
After that it entered the so-called crypto winter.
The accumulation zone began in May 2022, a year later. And it has managed to break its theoretical resistance in the USD 9.00 area with accumulation minimums at USD 4.65.
Furthermore, in this long-term chart, this last big rise has been accompanied by the overcoming of long-term resistance. It cannot be seen in this graph, but after surpassing it, it touched the area again, in support.
We’ll see if he returns to it, or continues on his up way.
For the short term, we have to keep in mind that we look at a graph of the last 3 months.
It is important to note how the Fibonacci structure shown indicates that this initial short-term movement has not yet ended.
You can correct, yes, but the trend is that it should continue sooner rather than later.
USD 14 seems to be its primary objective. Along the way, the current short-term highs and the $12.34 area appear to be its most significant resistance.
Reminder that this article is not a recommendation to buy or sell a crypto asset.
Consult with your trusted financial advisor.
Good Saturday !