What is Chainlink?To date, most businesses have heard of smart contracts but adoption has been slow.
One of the main reasons for the slow adoption could be due to lack of infrastructure that securely connects external data with the smart contract. Chainlink acts as a gateway so that data from outside the blockchain can be securely integrated with the blockchain. In other words, it connects on and off-chain data.
Chainlink uses an ‘oracle’ to pull data from an external system onto the blockchain. Currently, smart contracts cannot read info/data from the outside world since blockchains are isolated networks. Oracles are needed to read external data. So Chainlink is a highly reliable decentralized oracle network that could lead to a broader adoption of smart contracts.
Why will Chainlink explode in 2021?Currently, Chainlink’s number one use case is in Decentralized Financing (DeFi). In the DeFi space, you need a transparent price feed to ensure the value of collateral, to issue and settle loans and to calculate interest payments. Considering the amount of money that is currently flowing into DeFi, this alone could see the value of Chainlink go to the moon.
Additionally, there is one other feature that makes Chainlink a favourite amongst the crypto community. Chainlink oracles play a pivotal part in reusable services. It can connect the business of blockchain to business of tech, data aggregation and prediction models.
For example, Chainlink oracles can improve the insurance industry by using live weather data to determine crop insurance in the Agriculture sector. Furthermore, it can be implemented in the same way in the gaming and betting industries. This is how DeFi protocols can provide more services for use in other contracts and increase its use cases.
Buy Chainlink on AltCoinTraderWhilst many may not consider buying Chainlink (LINK) tokens out of fear that it may have run out of steam, LINK is considered amongst the top coins that are likely to explode in 2021. In 2020, Chainlink was named as a Technology Partner by the World Economic Forum and has been one of the best performing tokens over the past two years.
No one can foresee how high the price of LINK is likely to go this year. One thing is for sure, if you don’t buy LINK, you will miss out. Be sure to buy LINK on AltCoinTrader today and add it as part of your long-term portfolio.