Blockchain & The Chainlink Network
Chainlink is a cryptocurrency network that utilizes real-world assets and merges them on-chain while maintaining security through blockchain technology. The crypto for this environment is called LINK, which is used as a form of payment through the smart contract ecosystem.
Smart contracts are essentially on-chain code that is an agreement between two parties. When the conditions are met, the smart contract gives the set payout. In Chainlink’s case, the blockchain can take off-chain assets and build hybrid smart contracts, and payout with LINK.
The LINK crypto token was built on the Ethereum network which means it is interoperable with ETH and many other tokens alongside it. LINK’s max token supply is 1,000,000,000 with a market cap of over $12 billion at the time of writing. It’s an essential part of the entire Chainlink network as it’s the primary currency.
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First, we’ll need to understand the importance of Chainlink’s network and how it can be used not only for digital assets but real-world off-chain infrastructure as well.
The Importance
To many, Chainlink is a staple for smart contract development. Events, payments, and other influential data can be received through the blockchain network that is heavily protected, to make sure no manipulation of data is possible.
Chainlink’s network is crucially important for institutions and corporations looking to take real-world assets onto the blockchain. This could provide a more integrated ecosystem that enables better data storage or hybrid smart contract features.
Another significance to the Chainlink blockchain is the integration that already exists within many Decentralized Finance (DeFi) applications today. Price feeds provide the necessary market data needed to secure and fuel a multi-billion dollar industry.
As of now, we are only scratching the surface of what potential Chainlink’s network can hold, and blockchain technology in general. The various applications utilizing this technology have been dramatically increasing over time as adoption accelerates in the broad cryptocurrency space.
The Future Application
There is an abundance of applications that Chainlink’s network and blockchain technology can be used for. The primary use case is connecting real-world assets. While using assets built on the blockchain are useful, there is a whole world not yet connected to blockchain which will be needing assistance. This is why Chainlink was built.
We can now bring the real world to the blockchain, effectively allowing for decentralization and cryptographic signatures to secure the privacy of the data assets. This would mean that technologies we use today can be brought into the Chainlink blockchain instead of being remodeled.
Not only DeFi applications can take advantage of this, but also centralized institutions that need an organized data bank to manage assets. This widens the possibilities far more than many people previously thought was possible.
So in short, we are still in the early stages of Chainlink’s blockchain technology. The future will hold unimaginable opportunities in the cryptocurrency space.
Key Takeaway
The main point to note is that Chainlink is setting itself up to be a potential leader in smart contracts, as well as its LINK token which could climb to a higher market cap in the long term if the technology continues to become adopted worldwide.
The use cases are growing as more people understand how to utilize Chainlink’s blockchain for infrastructure that’s not yet synced. It’s never been easier for corporations to participate.
Overall, it’s incredible how far Chainlink has come, better yet it’s nowhere near close to the end of these astronomical developments that may completely change the standard of how industry and commercial data is accessed and shared. There’s nothing quite like Chainlink’s network at the moment which makes it a compelling candidate for further success.
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Author’s Insights
This is not intended to be investment advice. As always do your own due diligence and invest based upon your own risk appetite and consult your own financial advisor for the right investment strategy for your specific needs.
I am always an advocate of speculating in the crypto asset class. However, I am also a big advocate of having a budget allocated for your speculative investing. This should be a small portion of your portfolio balance that can help enhance returns if there is a large payout, but do little to no damage to the growth of your portfolio if things don’t pan out.
There are a multitude of different investment opportunities that you can speculate in, but you won’t be able to invest in all of them taking a budgeted approach. So the goal would be to pick a few that you are interested in and allocate accordingly.
