What is Chainlink Crypto ? / Chainlink [LINK] Future Price Prediction / How High Will LINK Go

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The Chainlink price is showing signs   of a bullish onslaught approaching soon.
Chainlink price on the verge of enormous upswing  The Chainlink price created several lower highs 
and higher lows since February 20. Trend lines   drawn along these swing points showed LINK was 
consolidating in a symmetrical triangle pattern. The breakout on April 2 propelled LINK by 7%,   but overwhelming selling pressure 
pushed it back into this consolidation.   At the time of video editing, the oracle token 
was giving the bullish breakout another attempt. To do so, the buyers need to push past 
the State Trend Resistance set up by the   Momentum Reversal Indicator at $30.31, 
coinciding with the breakout point. This   move will confirm the buyers’ objective 
and signal the start of a bullish run-up.

Adding credence to the upswing 
is the SuperTrend indicator’s   buy signal that spawned after the move on April 2.  Further providing a tailwind to the Chainlink 
price is the whale transaction count.   This metric measures market participants’ 
transaction activity worth more than $100,000,   and a spike could potentially represent 
their investment in LINK tokens. The recent spike seen on April 
2nd indicates the entry of such   individuals and paints a bullish picture.
Additionally, the whales holding 100,000 to   1,000,000 LINK tokens indicate an interest in 
LINK at the current price levels. As a result,   the number of such investors has increased 
6% from 251 to 267 from April 1 to April 3.  While things seem to be looking 
up for the oracle token,   a failure to rise above the upper trend 
line at $2.65 might signal weak buyers.

Such a scenario will soon result 
in a reversal in momentum,   dragging the Chainlink price toward the 
immediate demand barrier at $28. Further   persistence of selling momentum could result in a 
10% downswing to the lower trend line at $25.03. A breakdown of the symmetrical 
triangle’s lower boundary opens   up the possibility for a 10% crash to 
the MRI’s State Trend Support at $22.64.  in the interest of brevity,Chainlink 
price is giving the bullish breakout   another try after dipping back into 
the symmetrical triangle pattern.  A decisive close above $30.31 shows 
the promise of a 37% upswing to $41.63  Transactional data and whale activity 
suggest a massive breakout attempt shortly.  ChainLink has been getting 
quite a bit of attention lately.   So much so that LINK has risen to a market 
cap of nearly $1 billion in market cap.

The catalyst for these gains was the launch of 
Chainlink on the Ethereum mainnet in May 2019   and a Coinbase listing. Essentially, the project’s 
goal is to create a decentralized oracle service.   If they’re successful it could change smart 
contract usage and effectiveness forever. In this Chainlink review, we will take a deep 
dive on the project including the technology,   adoption, use cases & LINK price prospects.
When smart contracts are mentioned nearly   everyone thinks of Ethereum. And that’s 
because when Ethereum was launched back   in 2015 it contained something that took 
blockchain technology to the next level. The smart contracts of Ethereum 
meant that blockchain technology   could be far more than just a means 
for conducting financial transactions.   Ethereum’s smart contracts expanded 
the utility of blockchain massively. There was one problem with Ethereum smart 
contracts however, and that’s the fact that they   only work with data on their own blockchain. While 
that still leaves them as a very useful tool,   they aren’t nearly as useful as they could 
be.

Creating a way to include data from   outside the chain would give smart contracts 
an immense boost in the potential use cases.  The founders of Chainlink saw this, and they 
moved to fill the gap. ChainLink is being   created as a way to use oracle’s to pull data 
from off-chain sources. ChainLink oracles will   be able to use data pools, application program 
interfaces and other real world sources. It opens   up the possibility for smart contracts to use any 
data source at all, no matter what the source is. ChainLink will be extremely helpful to projects 
that need offchain data to be really useful.   By giving blockchains access to traditional 
data sets, ChainLink seeks to be the bridge   between traditional data and the 
future of blockchain technology. With those basics set, let’s 
have a more detailed look at what   ChainLink is being developed for, and 
how it can change the blockchain space. How ChainLink Works
The main function   of ChainLink is to create a bridge between 
on-chain resources and off-chain resources.   This means there are two primary components 
in the ChainLink architecture – an   on-chain infrastructure and an off-chain 
infrastructure.

Let’s see how both work. On-Chain Functions  The on-chain smart contracts are the 
first part of ChainLink’s architecture.   Included in the smart contracts are oracles 
which are created to process user data requests. These oracles will take any user requests 
for off-chain data that are submitted to the   network using a requesting contract and process 
them, sending them to the appropriate smart   contract to be matched with an oracle that 
can then provide the needed off-chain data.   There are three types of contracts 
that can help with matching:   the reputation contract, the order-matching 
contract, and the aggregating contract.  The reputation contract ensures that the 
oracle provider is reliable and trustworthy.   If it is, the request is passed to the order 
matching contract, which works to pass the   requesting contract to an appropriate oracle 
based on the service level being requested,   and the bids from the oracles.

Finally, 
the aggregating oracle collects data from   the selected oracles and delivers the 
best result to the requesting contract. Off-Chain Functions
Off-chain components are   the other part of the ChainLink architecture. 
These are oracle nodes that exist off-chain,   but are connected to the Ethereum 
network. I say Ethereum network here   because currently ChainLink is only capable 
of interfacing with Ethereum smart contracts,   but in the future it is planned to work with many 
different networks and smart contracts. The bulk   of the work is done by these off-chain oracles, 
as they collect most of the data being requested. All of the data collected is 
processed through ChainLink Core,   which is the software that connects the 
ChainLink blockchain with off-chain data sources.   ChainLink Core is responsible for processing 
data and passing it to the on-chain oracle.  All of this work by the off-chain nodes 
isn’t done as charity.

These nodes expect   to receive payment for the data collection and 
transmission. And they are paid, in LINK tokens. There’s a secondary function of off-chain nodes 
that make them quite useful to developers.   The off-chain nodes allow for the integration of 
external adapters, which are like decentralized   applications on the Ethereum network. External 
adapters are written by developers to perform   subtasks within the external nodes. This makes 
data collection and processing more efficient.  ChainLink’s decentralized nature and 
difference from other oracle protocols are   shown by the concepts of oracle distribution 
and source distribution used by ChainLink.   This decentralization helps ChainLink avoid 
centralization and other security issues. Source distribution and oracle distribution are 
the keys to the security and decentralization of   the oracle network. Source distribution is the 
concept that causes oracles to pull their data   from a variety of sources.

This helps them keep a 
good network reputation. And oracle distribution   is the concept that has data requests contracted 
to several oracles to maintain decentralization.  The above figure shows the two level 
distribution on the Chainlink network.   However, it helps to take a 
look at a practical example. Weather Application
A company creates a   user called the Sunshine Day Weather 
App. The user requires up-to-the minute   weather data, and to get it there’s 
a request submitted to ChainLink.   The matching oracle locates three different 
oracles to find and transmit the needed data,   following the oracle distribution 
methodology to maintain a secure network. Because the network also requires source   distribution each of the oracles will 
draw their data from different sources.   We’ll call the oracles X,Y and Z. Oracle X gets 
its data from Accuweather and Wunderground.

Oracle Y gets its data from the National 
Climatic Data Center and Open Weather Map,   while Oracle Z gets its data from 
the National Weather Service and the   National Oceanic and Atmosphere Administration. With this oracle and source distribution 
the network remains totally decentralized,   and Sunshine Day Weather receives 
aggregated data from three reputable   oracles who all receive their 
data from different sources. One other benefit of this system is that 
oracles are incentivized to remain honest,   since their reported data will be compared with 
the data from other oracles. If fraudulent data is   reported the oracle would see its reputation sink, 
and could face other network imposed penalties. Trusted Execution Environments
Trusted Execution Environments, or   TEEs for oracles, were added to Chainlink in late 
2018 when Town Crier was acquired by Chainlink.

Combining TEEs with decentralized computations 
gives Chainlink an added layer of security for   individual node operators. TEEs confer 
the benefit of allowing all computations   performed by a node private, even 
from the node operator themselves. This increases the overall reliability 
of the oracle network because it prevents   any node from tampering with any of 
the computations performed by them. ChainLink Use Cases
Quite possibly the biggest positive development so   far at ChainLink is its partnership with the SWIFT 
banking transaction network.

Let’s face it, SWIFT   is one of the largest global financial networks, 
and success with them could lead to many other   partnerships within the finance industry from 
banks to payment processors to insurance outfits.  While SWIFT isn’t flat out using ChainLink, 
it is developing the SWIFT Smart Oracle with   the help of ChainLink, and that leaves it 
possible for integrations between the two. Another positive is that 
ChainLink has little competition,   and even those that are working on blockchain 
oracle development are far behind Chainlink. The LINK token was under pressure 
throughout 2018, but that’s true   of the entire cryptocurrency market. After 
hitting a bottom in June 2018 it made a nice   recovery and was powered even higher beginning 
in April 2019 as traders and investors learned   that Chainlink was launching on the Ethereum 
mainnet. Since then the price is up roughly 400% ChainLink Partnerships
The partnerships that   ChainLink has forged are a part of its 
strength as well. The SWIFT partnership   is the largest, but it isn’t the only solid 
partnership already formed by ChainLink.  It’s interesting, because it seems the team behind 
ChainLink has focused on building partnerships   rather than on marketing, and that’s a large 
part of the reason the coin goes unnoticed by   most cryptocurrency enthusiasts.

The following 
are the largest ChainLink partnerships to date: SWIFT: The massive interbank 
communications network;  Zeppelin OS: An operating system 
that was developed specifically   for creating smart contracts;
Request Network: An exchange   platform that aims to be the standard 
for exchanging fiat and cryptocurrencies;  Signal Capital: A London based private asset firm.
Chainlink has been extremely active in adding new   partners and node operators since the launch on 
the Ethereum mainnet. It seems as if hardly a   day or two goes by without a new announcement 
of a partner joining to run a Chainlink node.

All of this has been extremely positive 
for Chainlink, increasing the adoption   of the blockchain even as the team continues 
focusing on development rather than marketing.   It appears that Chainlink markets itself, and new   partners come looking for Chainlink 
rather than the other way around. That’s a good sign for any type of business… Chainlink Community
Chainlink is fairly   unique among blockchain projects in a second 
way, and that’s how it has handled marketing.   While many projects have focused heavily on 
maintaining complete transparency and flow   of information to users, Chainlink has instead 
focused on the business of creating partnerships. The team does keep users informed,   but the flow of information is often 
sparse and spread out over time. You can see this in the social channels 
of the project. On Twitter, Chainlink   has 36,500 followers, which is fairly low for a 
project that’s been around as long as Chainlink.   Tweets can be sporadic too, with several 
days spread between tweets at times.  One of the largest communities on Chainlink has to 
be their Telegram channel, which has over 12,000   members. This is where you can go to get the most 
up-to-date information on Chainlink development.

On Reddit, which is considered one of the 
top hangouts for cryptocurrency enthusiasts,   the Chainlink subreddit has 
just over 11,000 followers. Posts are made daily and there are a good 
number of comments on each post, but the   conversations are almost totally from users, 
with little involvement from the Chainlink team. LINK Token  The LINK token rallied strongly right after 
its ICO and by October 2017 it reached $0.47.   After dropping from that high it rallied 
again in December 2017 and January 2018   along with the rest of the cryptocurrency 
markets, hitting a high of $1.35 in January 2018. It dropped in 2018 along with the rest 
of the market, hitting a low of $0.1647   at the end of June, but by September 18, 
2018 it recovered and was trading at $0.2872   and was the 50th largest coin by market 
cap, with a market cap of $100,530,182.  From September 2018 through May 2019 the 
price of LINK remained roughly between   $0.25 and $0.50 as the crypto markets began 
a slow recovery. May 2019 is when the price   really took off as investors were encouraged by 
the launch of Chainlink on the Ethereum mainnet.

On May 1, 2019 LINK was trading at $0.476462   and by June 29, 2019 it hit its all-time high 
of $4.54. It pulled back to the $1.60 area by   September, but has been climbing steadily since 
and as of October 27, 2019 it is trading at $2.72.  Buying & Storing LINK
In the past, if you wanted to purchase   LINK yourself you needed to do so with BTC or ETH 
as there were no fiat purchases available for the   token. However, it was recently added on Coinbase, 
and can now be purchased there using USD. Binance is still the best exchange to purchase 
LINK from though as the bulk of the trading   volume is on that exchange. You can also buy 
at Huobi, OKEx, and Mercatox as well as dozens   of other small and medium-sized exchanges.
In terms of LINK liquidity, it is pretty   well spread out across all of the exchanges 
where it is listed.

This means that you are not   dependent on the liquidity from any single 
exchange which further reduces the risk. Looking at the individual orders 
books on the likes of Binance,   they are quite deep and there is 
a reasonable level of turnover.   This means that you would be able to place 
large block orders without much price slippage. Once you have your LINK tokens you will 
want to keep them in an offline wallet.   Give that these are ERC20 tokens any wallet 
that supports Ethereum will do. These include   wallets such as MetaMask or MyEtherWallet.
So how is the core development of Chainlink   looking? Well, the best way to get a sense 
of this is to look into their public GitHub. By observing the total commits in the 
repositories, you can get a rough sense   of general development output.

Below are the total 
commits to the core repository over the past year.  As you can see there has been a 
pretty regular stream of updates   over the year so things are still active. 
Compared to other projects in the space,   Chainlink comes in at about 
60 in terms of total commits. So while the development output is not as 
extensive as some of the other projects that   I have seen, it is still reasonable. 
If you want to keep up to date with   these developments then you can head on 
over to their official Gitter channel.  Chainlink’s Future
ChainLink has not   released a formal roadmap, so we can’t be 
positive what the next developments will be.

Actually, lack of communication from the 
development team, along with a lack of   marketing for the project, has been one of the 
biggest frustrations in the ChainLink community. It’s well known that ChainLink founder Sergey 
Nazarov prefers to work behind the scenes,   and is not one for public appearances.
That has been improved over the past year however,   with Chainlink increasing the amount of 
information it provides to the user community. It could still do better though. Currently 
the team posts to Twitter fairly frequently,   but the blog is updated pretty infrequently. 
The best source of information is Telegram. The value Chainlink brings us is in the ability 
to provide provably reliable oracles that   are able to be combined in an efficient 
and secure manner into oracle networks.

The ongoing work of Chainlink is to achieve 
this goal by allowing individual users to   select individual nodes of the highest 
quality and then aggregate the nodes into   oracle networks that are Sybil attack 
resistant. Then Chainlink provides the   security measures to ensure these networks can 
function as reliable smart contract triggers. One method is used by the Chainlink network 
to allow its users to select the highest   quality individual nodes is by providing 
the necessary data that shows how well the   nodes are currently fulfilling requests, and how 
well they have fulfilled requests in the past.

Chainlink Explorer
The Chainlink Explorer   is the means to make sure all of 
this data is available to users.   It was launched in May 2019 along with the 
launch on the Ethereum mainnet and is designed   to provide the insight into the function of 
Chainlink nodes in two primary dimensions: Detailed information regarding each 
node’s fulfillment of user requests.   This includes both the off-chain 
activity and the on-chain results,   and it gives the smart contract developers 
critical data regarding how well   nodes and oracle networks are performing.
Reliability and speed data for every node   connected to the explorer are aggregated 
for both on-chain and off-chain activity.   This allows the Chainlink developers to begin 
to understand how a reputation system would work   within the Chainlink network, with the hypothesis 
being derived from real transaction data.  The Chainlink team is planning on expanding the 
capabilities of the explorer to provide deeper   levels of insight regarding the operation of each 
individual node.

This will include various metrics   about node reliability and speed, which dApps and 
contracts have used a particular node, and data   about each node’s fulfillment of commitments.
As real transactions increase on the mainnet   the team expects to have an increased amount of 
verifiable proof for each oracle’s reliability,   giving users and increased 
insight into oracle performance. Once the team has been able to 
create a data-driven framework   for users to choose node operators,   they will be able to divide the nodes into 
oracle networks that achieve decentralization. In order to reach this level, the team is working 
on levels of aggregation across oracle networks,   looking to provide the needed security and 
efficiency expected from such oracle networks. Threshold Signatures
One step in this direction   was a new approach to the utilization 
of threshold signatures on Chainlink,   which will allow the team to create oracle 
networks that can contain thousands of nodes. The main benefit of this threshold signature setup 
is that it allows oracles to have their signatures   verified on-chain which provides added security 
and it does so in the most efficient manner. Making large oracle networks efficient 
is a desirable goal because it will be   a preferred method for offering reliable 
inputs for high-value smart contracts.

Smart Contract Inputs
Besides creating efficient,   secure and highly decentralized oracle networks,   Chainlink is also trying to become the largest 
source of smart contract inputs and outputs. One of the goals of achieving this state is to 
make smart contract development as rapid as web   application development is today. Similar to the 
way web developers are able to draw from a large   pool of APIs and data streams, smart contract 
developers will also be able to draw from a   collection of inputs and outputs, if the Chainlink 
team is successful in achieving this goal.  This would make Chainlink the go-to 
blockchain for developers and smart   contracts to find pre-made inputs and 
outputs that can rapidly be implemented   in dApps or that can securely and easily 
accept specific input/output requests. Since Chainlink is far ahead of any other 
oracle network of its kind, achieving these   goals could cement Chainlink’s place within 
smart contract development and execution. Conclusion  The ChainLink project isn’t the easiest 
to come to grips with, but once you do   it’s easy to see how it can benefit the 
blockchain ecosystem massively going forward. Blockchains by themselves are 
very limited, and they require   oracles to unlock their full potential. 
Because ChainLink is one of the few projects   working on oracle development they could easily 
become an industry leader for years to come.

The lack of marketing has caused concern 
among the ChainLink community, but that is   offset by the partnerships being forged by the 
ChainLink team. Honestly, if they are successful   with SWIFT they may not need marketing and 
will become a billion-dollar whale within   the financial services community regardless.
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