ChainLink has recently been performing really well in the market, so much so that it managed to briefly break into top 30 of the Coinmarketcap’s list of most valuable cryptocurrencies today. This positive price action which lasted ever since the beginning of last year’s December is showing no signs of stopping, as the token currently sits at cool $0.50, with a 16,69% gain during the last 24 hours. Naturally, being one of the market’s standout performers brought eyes back onto this somewhat forgotten project that is looking to solve the well-known issue of “oracles”.
Oracle is a concept that comes with the discussion of smart contract, blockchain-based technology very often. To acquire real world data, smart contracts require certain input entities that will give this data to them. In the world of decentralized, self-executing, trustless blockchains these entities cannot be a third party. Such an oracle could be wrong (either intentionally or accidentally) about the data it gives to the smart contract. Hacks, malicious players, or plain human error will result in the contract being fed with false data.
ChainLink looks to solve this problem by building a decentralized oracle network that will allow this data to be verified across the network of nodes; the nodes will aggregate the results, come to a consensus and deliver what is agreed to be the right data input to the smart contract. While it’s currently bound to the Ethereum blockchain, ChainLink intends to become blockchain agnostic and have its nodes satisfy the data needs of every smart contract-based project on the market.
LINK owners naturally believe that the project behind the token can become the decentralized oracle platform of the future. Some are less convinced, and one Redditor provides a good summary of what his peers believe is the “ultimate blackpill” against the project:
“Any institution worth their salt will use their own custom JSON parsers to solve the oracle problem. It’s something that can be done in a few weeks with competent developers. The reason LINK is being shilled as the solution to the “oracle problem” is because there isn’t even a problem in the first place. Any issues that oracles may present in the future will be dealt with efficiently, quickly, and in-house.”
Still, in the future that the world of blockchain is headed to, having decentralized oracles is a priority; unbiased, democratic, consensus-based data collection remains crucial to maintaining the true decentralization. Even the popular exchange Binance picked up on the project’s potential, as they’ve recently introduced several LINK trading pairs onto their platform.
The exchange will add LINK/USDT, LINK/TUSD, LINK/PAX and LINK/USDC trading pairs, significantly increasing LINK’s liquidity and overall status in the crypto community. While this represents a truly great development, some feel the project isn’t that far from reaching the ultimate goal of many an investor: getting LINK listed on Coinbase.
ChainLink remains one of the more mysterious projects on the current market, promising a lot and perhaps even creating more than healthy amounts of hype with certain investors. It will be interesting to see if they will be able to deliver on their promises in the future.
LINK is up 21% in the last 24 hours so it is almost done with its pump phase, meaning it is too late to join the party and reap the benefits. If history of coin behaviour during a big pump taught us anything, the dump phase should start within 24 hours as the first, big whales who orchestrate sudden pumps are already starting to sell while enjoying heavy profits.