Chainlink(Link): Old but Still Alive 2023 — Oracle Power House
Past | Data | Main Product | VRF | Program | Inveset | Future
People forget about old coins as soon as new ones come into the market; a good example of this is Chainlink. Is the chainlink rusted due to age?
- Is there a future for Chainlink?
- What is the current status of this project?
- Today, we will go through all of these things in depth.
Chainlink’s token is known as LINK. LINK is such a token that survived the bear cycle of 2018 and began rallying as soon as 2019 started. Those who purchased and held the LINK during the 2018 bear cycle got many times return. At the time, the most outperformed LINK token was performing well in the market.
Past
LINK coin did not perform well from 2020 to 2021, and the price started to stabilize. This entire game is built on hype. Before the product is released onto the market, hype begins to grow. Throughout 2018, Chainlink announced many collaborations and products. Many businesses began adopting the product once it was released in 2019. Chainlink was once a young child, but as it grew older, it matured.
As they have gained supremacy in the market and are in use, older currencies like Ave and Chainlink will continue to exist happily for the next ten years.
We all know that Chainlink has brought the solution of Data Oracle to the market. There were no solutions for a Decentralized Data Oracle many years ago, and Chainlink was the first to introduce Data Oracle.
Data Oracle
When developing a smart contract, a Defi application, or a web3 application, real-world data such as wealth, financial data, social network API data, and data from Oracle is required to cover all of these gaps. For this data oracle, Chainlink is required.
Data Oracle must be used to transfer data from web2 to web3, acting as a bridge. Many data Oracle providers have entered the market recently, but Chainlink dominates them all.
It has 3 main parts:
- on-chain Oracle,
- off-chain Oracle,
- node
Key Matrix
The LINK token is now trading at $7, with a market capitalization of $3.6 billion. The entire supply is one billion, with 51% circulating on the market.
Tokonomic
Chainlink is a three-point asset since it has three utilities.
- If a corporation wants to use Data Oracle’s services, it must pay in LINK tokens. To use their service, the corporation must purchase link tokens and then pay in crypto tokens.
- Staking the link token might increase your revenue.
- The staked link can be collateralized for Oracle service.
A node operator is required to run the service of Data Oracle because the work of verifying the data is done by the node operator. These node operators will get 35% of the available supply.
Fundamentals
All of the locked value of any protocol using Chainlink is referred to as the value secured. It has 255 protocols inside it, and the total amount secured is roughly 12 billion. Binance, sandbox, Google, and Swift are among their noteworthy big partners.
In 2019, chainlink was the first company to partner with Google Cloud, and since then it became more popular.
They have almost 2100 business partners.
Main Product
Data Feed, API, Node, Automation, web3, VRF, Proof of Reserve, CCIP
VRF is used more in the NFT field. While making NFT, different forms of the same art have to be made. Meta data must be used for randomization. This Randomization function is provided by VRF. The usage of VRF is particularly common in the case of NFT. Chainlink’s API is used by many web3 businesses.
On chain
The Chainlink community has a high level of confidence in the LINK coin. They always believe in the LINK token. Retailers control 26% of the LINK token supply. In this coin, Whale’s contribution is higher.
Dapps and Layers
In which projects the technology of Chainlink has been used?
- Aave’s Landing Pool
- Aave’s aLINK Token V2
- Anyswap’s Phantom Bridge
- Arbitrum’s Layer1 ERC20 gateway
- in Avalanche Bridge
- In ERC20 Bridge to Polygon
- MakerDAO
- cLINK token in Compound
Products for VRF
VRF growth on Ethereum in NFT has slowed in recent months. Due to a shortage of new collections in the NFT market, VRF requests have also decreased. However, the NFT ecosystem in Polygon is expanding rapidly, and new projects are being developed.
The more new NFT collections that are introduced, the more VRF goods will be used. This VRF product is owned by Chainlink, and it must be paid for in Link Token.
Program
Chainlink launched the Staking program a few months ago. Although investor interest in this program has been very good, just 5% of the circulating supply has been staked thus far.
Some time ago, they launched Dynamic NFTs Service Program. In dynamic NFTs, the emotion of the NFT character changes according to the data feed.
Recently they have launched the data feed of Spotify.
Plan
Chainlink plans to provide an enterprise client solution in the future. When working at the business level, the use case for Link Token might expand even further.
Chainlink is currently in its early stages. Although there are numerous participants in Oracle’s business, Chainlink is the overwhelming winner. It’s hard to beat in the data oracle category.
Investment
Looking at investment, it has become a bit slow coin but it is secure. Because these projects have been on the market for 5 years, it is more challenging to provide 30x growth. Their market capitalization is now in the billions.
According to me, it has the potential to be 10x during the bull run, and the risk level is low.
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Disclaimer
This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.