Cryptocurrency 101

Chainlink Review: Decentralized Network for Smart Contract

  • This CoinQuora article talks about Chainlink, its technology, use case, and more others.
  • Basically, Chainlink is a decentralized network oracle aiming to revolutionize the crypto industry utilizing smart contracts.

Cryptocurrency creation has now become a daily routine for digital asset creators within the crypto industry. Hence, the creation of Chainlink crypto.  More so, the zeal for Chainlink from individuals and well-time institutional investors continues to increase. These things prompt people to read Chainlink reviews. Of late, Chainlink has attained much attention that has made its rise up to a $1 billion market cap. But now, let’s get ready to know what is Chainlink.

What is Chainlink?

Chainlink is a decentralized network oracle within the cryptocurrency and blockchain space. Basically, it strives to pioneer a real-world data solution through a network of computers.

Chainlink’s project goal is to provide the world a much more trustworthy decentralized oracle service. As a result, it aims to change smart contract usage and technological know-how. Specifically, Chainlink’s oracle was created as a method that will pull out data from off-chain sources.

Looking at its features, the oracle uses data pools, APIs, etc to work. Ideally, Chainlink makes it easy for smart contracts to use any data despite their sources. Moreso, Chainlink’s vision is to be a bridge between on-chain and off-chain resources.

Following the above-mentioned, LINK functions as Chainlink’s main native currency.

Uses cases

Decentralized Finance

Chainlink uses vary in so many ways. In decentralized finance (DeFi), Chainlink channels different monetary strategies like hedging, speculating, earning interest, collateralizing loans, etc. This increases users’ monetary value within Defi.

External Payments

Thanks to its fintech potential. Chainlink offers a wide range of payment services from smart contracts to external APIs. It allows smart contracts to connect the already-existing banking systems easily.

Additionally, Chainlink enables smart contract developers to integrate users’ information such as customers’ bank account, deposits, and others.

Gaming

The gaming industry is vast and continues to create games that catch the attention of many gamers. In order to protect the games from frauds, the gaming industry integrates blockchain technology in their system.

One of these blockchain technologies is Chainlink’s verifiable randomness function (VRF). LINK’s VRF provides games with tamper-proof security which eliminates manipulation in the games.

Remittances

The transferring of funds across borders continues to grow as days go by. With this, LINK provides the cheapest way to transfer money in a fast-paced manner. Also, through its Oracle system, users can have reliable foreign exchange rates to smart contracts.

Is LINK a profitable crypto this 2021

Chainlink continues to be one of the active digital assets in the crypto space. With its Oracle technology, LINK provides a high-level of network security which is quite popular in the DeFi space. Consequently, the mass adoption of the crypto increases.

Do you think this would be enough to make LINK a profitable crypto in the coming days?

Let’s find out in this Chainlink Price Prediction 2021.

LINK ALMA and RSI
LINK ALMA and RSI (Source: TradingView)

The graph above displays how LINK manages to defend its uptrend position against the market volatility in the past months. Also, LINK successfully handles its bearish dip price of $8.7 last December 23. As a result, LINK price surges to almost $14 with a growth rate of +51% after a few days.

Today, LINK trades at a high price of $17 above the Arnaud Legoux Moving Averages (ALMA), a bullish indicator. If this goes on, the crypto might break its resistance level of $17.45 and rally its position near the bullish price of $18. This is most likely to happen if the investors remain on the side of the crypto.

However, if the market turns against the crypto, LINK price might decline, a bearish price. In this case, traders must pay close attention to the performance of the crypto. Otherwise, they might lose funds as the position of the crypto slowly enters the bears territory.

Meanwhile, the relative strength index (RSI) is now already in the pull back stage. As shown in the graph above, the RSI points at level 65 from its overbought level of 72.33. Hence, traders must decide quickly whether they will HODL or make sell before FOMO spreads in the network.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

Collins Adane

Collins Adane is a writer who follows the crypto industry closely. He loves fish stew and Real Madrid. He believes in cryptocurrency’s potential to transform the money landscape in his native country Ghana.

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