In the recent popular DeFi section, the oracle project Chainlink’s token Link is undoubtedly the most dazzling protagonist-the increase is as high as 250% in one month, and the daily line has almost taken a 90° pace since the 6th.
Some one may make Link coin price prediction. But I think no one can accurately predict the price.Let us first understand this project, and then invest in it.
As the seventh largest currency on Coinbase after Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, and Ethereum Classic, Chainlink has always been regarded as the well-deserved first project on the oracle machanism.
In the FOMO (Fear Of Missing Out) mood, what kind of project is the Link coin, and how can it behave like this?
Pioneer of the oracle machanism, standing in the center of the DeFi stage.
What is an oracle mechanism? In short, an oracle machanism generally refers to a mechanism for writing information outside the blockchain into the blockchain, which can be understood as a bridge connecting the real world and the blockchain world.
Because in smart contracts, although value transfer can be driven and self-executed by publicly verifiable code, there is no longer a need to trust any party. But the core problem is that smart contracts can only execute code after receiving input and on-chain operation.Can not directly enter the off-chain , which makes the reliability of the data on the chain become the core key.
For a simple example, if a smart contract is deployed on the chain to stipulate that the Nasdaq index reaches 20,000 points on the next trading day, the script will automatically deduct 1 BTC from account A to account B, and vice versa. Transfer to A.
In this contract, after the result is obtained, the deduction between the accounts of both parties is automatically enforced programmatically, and the whole process is completely on the chain, so there is no need to worry about breaking the contract.
Only the trigger condition of whether the Nasdaq index reaches 20,000 points is not on the chain. This requires an external data source to tell it the exact content of the trigger condition, and it requires off-chain grabbing for interactive judgment.
The oracle machine is used to ensure the accuracy and fairness of the off-chain data in the process of interacting on the chain, and to prevent fraud and manipulation. Therefore, the core of the oracle is to solve the trust problem-to provide a trustless environment, and the data on the reporting chain must be credible.
It can be seen that although the traceability and non-tamperability of the blockchain can make data more credible, the premise is that the fairness and accuracy of the data must be guaranteed. Therefore, all data-related industries are almost all application scenarios of oracles. This is the natural fundamental advantage of the oracle track where Chainlink is located.
To some extent, the blockchain technology serves data, and the demand for data on the smart contract on the chain is the most fundamental, so the oracle is one of the most important infrastructures, and Chainlink is the first oracle project. It has also become the most widely used oracle solution in the DeFi field, and it has exhausted the leading dividends. The partners are almost all over today’s head trading platforms and various DeFi projects.
Especially in the ascendant of DeFi, the credibility of data on the chain is directly related to the core security of capital assets. For DeFi, most of the chain is procedural arbitrage operations, and the accuracy of the price feed almost determines everything. The key part of the previous “bZx attack incident” was the problem of the oracle.
Therefore, under the increasingly prosperous Ethereum DeFi ecosystem, the importance of the oracle in the value capture on the chain has been particularly highlighted. This is the fundamental reason why the Link coin has repeatedly attracted the attention of the entire secondary market this year. Stand in the center of the DeFi ecosystem, link various large and small DeFi projects, and open up and offline data transmission for them.
In the design of ChainLink, any node operator with data feedback and other APIs is allowed to provide these to smart contracts in exchange for Link. And allow these data providers (such as payment providers or service providers) to sell their API-based services directly to smart contracts in exchange for Link. Therefore, as a reward to many nodes in the system, Link coins will naturally benefit greatly.
Dormancy erupted again, and the field of cognition gradually expanded
Chainlink, which was born in 2017, has actually survived three years of “silence, outbreak and dormancy”.
As a result of catching up with the industry turmoil and poor publicity, chainlink experienced a low tide period of nearly two years in the early stage. Only in 2019 will we usher in our first highlight moment. The intensive publishing partners have gradually shaped its cognitive field, including some well-known Internet giants：
As a result of catching up with the industry turmoil and poor publicity, chainlink experienced a low tide period of nearly two years in the early stage. Only in 2019 will we usher in our first highlight moment. The dense distribution of partners has gradually shaped its circle of friends, including some well-known Internet giants
1.In May 2019, Chainlink’s token Link was launched on Coinbase, becoming the 7th largest currency listed on Coinbase after Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, and Ethereum Classic;
2.On June 13, 2019, a Google blog post showed that Google was connected to the Chainlink oracle and demonstrated how to use the oracle to connect the BigQuery API to a smart contract;
3.On June 26, 2019, Oracle for Startups, the world’s third-largest software company, announced that it would support Chainlink oracle access and allow 50 qualified projects to target Oracle’s 175 sites by using the Oracle blockchain platform. 430,000 customers in the country are monetizing data.
Because of this, the price of LINK tokens has soared from $0.4 at the beginning of 2019 to $6 in the middle of the year. Even though the market’s perception and optimism of the oracle at that time were far less intense than it is today, “ten times The performance of coin” directly makes it the focus of attention.
With Link’s “roller coaster” trend in the secondary market in the second half of 2019, questions about its “high cash out” and “lie scam” began to linger. Some netizens even bluntly said that Chainlink’s cooperation with giants such as Google is just “Elaborate design” of unilateral excessive packaging.
These accusations such as “technologically immature”, “serious project centralization problems”, “unclear cooperation with various projects” and other accusations have kept Chainlink on the cusp, and the price performance of the community has gradually become sluggish.
After entering 2020, Chainlink’s “circle of friends” has not diminished in the slightest, and many heavyweight partners have also continued to emerge. Open its official Twitter homepage, and you can clearly see almost a few days of cooperation. Sometimes even several in a day, and on June 22, the Blockchain Service Network (BSN) announced the introduction of the Chainlink oracle function into its network, which pushed it to a small climax.
Taking advantage of DEFI’s east wind, the track leader points to the “mainstream”
After the completion of the third Bitcoin halving, the DeFi track will undoubtedly become a well-deserved hot spot in the second half of 2020 before the ETH2.0 debut. Up to now, there have also been top star projects such as MakerDAO, Compound, and Synthetix.
According to Defiplus data, as of July 15, the total lock-up value of the entire DeFi is as high as 2.53 billion U.S. dollars, which has far exceeded the previous historical peak of 1.28 billion U.S. dollars (February 15, 2020) and nearly doubled.
At the same time, as the value of locked positions on the chain has been rising, the total market value of DeFi tokens has doubled. According to DeFi Market Cap data, the total market value of DeFi tokens has exceeded US$8 billion in the same period. Less than 1 billion U.S. dollars, which has doubled by 8 times in a short period of time. The performance of tokens is obviously ahead of the ecological development speed. Link is undoubtedly a representative of it.、
In recent months, like Chainlink, it has been the leader in various subdivisions of the DeFi ecosystem. Almost all of the synthetix derived from Compound and Synthetix have performed well, reflecting the market’s extremely optimistic view of the follow-up development of the DeFi track, especially the key predictors, which naturally set new highs.
Chainlink can be called a “model worker” to promote project cooperation among many blockchain projects. As the co-founder and CEO of Chainlink, Sergeyd Nazarov is also a veteran with a bright resume in the industry.
Sergeyd Nazarov is also a boy of Russian descent. He graduated from New York University and joined FirstMark Capital when he entered the workplace in early 2009. His team managed tens of billions of dollars in assets.
After getting in touch with Bitcoin in 2011 and joining the “cryptocurrency revolution”, Sergeyd Nazarov began to gradually indulge, and since the creation of SmartContract.com in 2014, he has devoted himself to it and launched a number of blockchain startup projects (ExistLocal, NXT), Chainlink is one of them.
“This time, like all times, is a very good one, if we but know what to do with it”. This famous quote by Sergeyd Nazarov on LinkedIn’s personal homepage is perhaps the most vivid footnote of Chainlink today. Now that DeFi is hot, Chainlink, as the leader of the oracle, has undoubtedly ushered in its own bright moment after a few years of dormancy, and it remains to be seen how it will go afterwards.