With the increasing demand for oracle networks, a cryptocurrency that gained tremendous popularity in 2021 is Chainlink (LINK). Its popularity stems from a variety of reasons, including the unique business model of Chainlink.
LINK is a unique cryptocurrency that aims to advance the entire blockchain sector with its unique technology. Unlike other coins, it does not compete against other cryptocurrencies. The question investors are curious to get an answer to is, could Chainlink be a millionaire-maker coin?
Chainlink has the potential to be a millionaire-maker, considering the significant growth that the cryptocurrency is predicted to experience over the next couple of years.
Before we talk about Chainlink's potential as an investment, let's take a look at what LINK is, the factors that could make it a stellar investment, and a bit about its price history. Currently, Chainlink is nearing its all-time high, and every prediction suggests that it could go even higher.
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Chainlink: What Is It?
Chainlink is an industry-standard oracle network that connects smart contracts with real-world data. By bridging the gap, it expands the capabilities of smart contracts by enabling access to payments, events, and much more. It does this without compromising the network security and reliability.
Chainlink also provides complete transparency to its users by giving them access to monitor and verify its open-source code, the performance of its oracle networks, and the quality of individual node operators. It is not a single oracle network but a whole ecosystem that contains numerous decentralized oracle networks running in parallel to each other.
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Is Chainlink A Millionaire-Maker Investment?
Chainlink has gained significant popularity since the beginning of last year, with its unique goal to create the world’s first blockchain oracle network. Analysts and crypto enthusiasts predict that Chainlink could be a millionaire-maker coin if it continues to keep its momentum. It currently sits at around $26 (with a market cap of $12 billion), which is lower than its all-time high of $52.88 in May 2021.
The project entered the market in 2014 but was under the name of SmartContracts.com (renamed to Chainlink shortly after its launch). Further, LINK garnered much popularity with its ICO (Initial Coin Offering) in 2017. It was one of the largest events which brought the network to the spotlight. It gained a sum of $32 million and allowed Chainlink to expand its boundaries of oracle reliability and security.
Today, the network has the potential to efficiently bridge the growing gap between external data sources and public blockchains. It opens up new and exciting opportunities in the blockchain world, making it a viable investment option for investors.
Currently, it is driven by a large open-source community that includes data providers, node operators, smart contract developers, researchers, and several other adept professionals. The purported goal of the company is to ensure that there is decentralized participation for all node operators and users who want to contribute to the network.
Thanks to its advanced technology, Chainlink has gained significant attention from investors and several established institutions. It has strong community support and has the potential to be a millionaire-maker investment.
LINK has several administrative features, development, and use cases that support a bullish thesis. Let’s see what drives Chainlink to be a millionaire-maker coin.
Factors That Could Make Chainlink A Millionaire-maker Coin
Few significant factors drive the value of Chainlink to become a millionaire-maker coin. Let’s analyze them.
The Oracle Network Provider
The first and foremost factor is that Chainlink allows institutions to leverage the powerful technology of the oracle network in a trustless manner. Being the core of several exciting developments oracles are significant for network expansion. It is even used by the fast-growing DEX (decentralized exchanges) to determine the price of cryptocurrencies without offering an order book.
With oracle networks, users can be assured that the data they receive is timely and not corrupt or incorrect. The system will automatically replace itself with a higher ranking alternative even in a single node failure.
Chainlink is one of the major players in the data processing field. It has strong partnerships with established firms and institutions in the market, making it a viable option for a long-term investment. One significant tie-up to date is its strategic partnership with Google. This concurrence secured Chainlink’s protocol within the Google Smart Contract strategy. It was a successful collaboration as it allowed users to connect to Google’s two most popular clouds via API.
As it provides the integration of off-chain data, Chainlink has also gained attention from several data providers like Brave New Coin, Alpha Vantage, and Huobi.
An Investment Asset
Apart from its worldwide adoption as a means of transaction, Chainlink is also considered a significant investment asset. Grayscale, one of the biggest crypto asset managers in the world, has over $26 million in asset management on several trusts, including those tied to Chainlink.
LINK is an ERC-20 token secured by the Proof-of-Stake (PoS) consensus mechanism. It relies on the number of staked tokens for selecting node validators and is highly energy efficient compared to Proof-of-Work (PoW).
Therefore, along with providing high security, Chainlink reduces power consumption and is an efficient future-driven network.
Chainlink announced its plans to team up with major node providers based in the EU. One such significant integration of Chainlink is with the SKALE Network. The Vulcan Link received a grant to integrate Chainlink to SKALE, a completely decentralized Ethereum network. It is a notable integration because without compromising the security on blockchain platforms, SKALE offers all the benefits of decentralization and transaction speed.
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Could Chainlink Be A Millionaire-Maker Coin?
Today, Chainlink is one of the widely accepted and opted decentralized oracle networks. It continues to secure billions in USD value for several live applications across multiple blockchains. Thanks to its developers, Chainlink has a solution for the biggest problem that the blockchain sector faces. That is, to communicate information to and from the blockchain.
With the tweet, Chainlink has opened doors for developers to explore ways to simplify their dApp development. It also has plans to launch the Chainlink 2.0 soon, which will help build off-chain networks on top of the oracles for easy execution of smart contracts.
With all this in place, analysts predict the price may reach about $35-$45 by the end of 2022, and Chainlink could be a millionaire-maker coin in the near future.
Chainlink is a necessary resource to the market as it expands the functionalities of the blockchain network and provides developers a new mode of flexibility. It has successfully bridged the gap and has brought interoperability to the whole blockchain industry. With all its plans in place and according to its bullish predictions, Chainlink could be the next millionaire-maker coin for investors.
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