Chainlink (LINK) is a decentralized oracle network which aims to connect smart contracts with data from the real world. Chainlink was developed by Sergey Nazarov, with Steve Ellis as the other co-founder. It held an ICO in September 2017, raising $32 million, with a total supply of 1 billion LINK tokens. LINK, the cryptocurrency native to the Chainlink decentralized oracle network, is used to pay node operators. Since the Chainlink network has a reputation system, node providers that have a large amount of LINK can be rewarded with larger contracts, while a failure to deliver accurate information results in a deduction of tokens. Developers describe LINK as “an ERC20 token, with the additional ERC223 'transfer and call' functionality of transfer (address, uint256, bytes), allowing tokens to be received and processed by contracts within a single transaction.
What Are Oracles?
Chainlink is a platform that aims to bridge the gap between blockchain technology-based smart contracts (made widespread by Ethereum ), and real world applications. Since blockchains cannot access data outside their network, oracles (a defi instrument) are needed to function as data feeds in smart contracts. In Chainlink's case, the oracles are connected to the Ethereum network. Oracles provide external data (e.g. temperature, weather) that trigger smart contract executions upon the fulfillment of predefined conditions. Participants on the Chainlink network are incentivized (through rewards) to provide smart contracts with access to external data feeds like information. Should users desire access to off-chain data, they can submit a requesting contract to Chainlink’s network. These contracts will match the requesting contract with the appropriate oracles. The contracts include a reputation contract, an order-matching contract and an aggregating contract. The aggregating contract gathers data of the selected oracles to find the most accurate result.
Chainlink’s price has been witnessing massive inflows of selling pressure throughout the past few weeks, with buyers being unable to garner any control of its mid-term trend in the time following its rejection at $20.00.
The cryptocurrency has now firmly broken below its previous at $10.00 .After holding above $10.00 for an extended period of time, the cryptocurrency eventually faced a massive influx of selling pressure that caused its price to reel to fresh multi-month lows.
While speaking about the cryptocurrency’s current outlook, I estimate now targeting a decline down towards $7.90, which appears to be a bedrock for the token.
I notes that there is a possibility that LINK begins rallying now, with the support here potentially being enough to send it rocketing back up towards its previous highs.
👉This analysis is my personal opinion and you are responsible for your own trades or invests.
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