Chainlink LINK

This is a real time analysis of how I look at opportunities in the crypto market. Chainlink has consolidated since May, only recently has it shown some upward movement. Chainlink appears to be undervalued based on how integrated it has become in all crypto ecosystems.

November 6, 2021

What is Chainlink

We very briefly covered Chainlink (LINK) in early September during a consolidation period. This article can be viewed [here]. Chainlink is the largest oracle in the crypto market, oracles are important for data feeds including prices for tokens. Early oracles were faced with the decentralization problem, if they were to use a single exchanges price feeds, that single exchange could be the point of failure. Chainlink solves this problem by aggregating various centralized and decentralized data sources. This data is then brought to node operators who help validate the network and come to an average price consensus. The data is then provided to the network (Ethereum, Avalanche etc.). By utilizing this process, single points of failure are removed, and the process is decentralized[1].

By using this process, Chainlink can take outside data (usually token prices) and bring it on chain to your favorite smart contract networks. This also allows Chainlink to send on chain smart contract data to centralized entities. Imagine you pay for a rental car on a mobile application. Once the payment is received your selected car has the door open automatically for you. This can also be applied to banks for payment verification. Chainlink is also useable for NFT dynamics, such as changing of an NFT appearance based on the time of day. Games can use Chainlink for verifiable randomness of loot-box drops and more.

Chainlink recently surpassed 75 billion dollars in total value secured across the broad ecosystem. Almost all defi ecosystems rely on Chainlink and the services it provides. With Chainlink integrating into the NFT and gaming space for verifiable randomness and other features, the sky is the limit in regard to potential value. Check out our affiliate link for Blockfi here >> [Blockfi]. If you are not signed up to our prime subscription please check it out to view the rest of this article. >>  [Prime]

Chainlink LINK, Blockfi lending