What is Chainlink? | Messari (2024)

FAQs

What is Chainlink? | Messari? ›

Chainlink is an Oracle network that services various blockchains, protocols, and projects within Web3 and the broader cryptocurrency industry. Oracles provide a way for blockchain-based systems and protocols to access data that exists outside the blockchain.

Chainlink is a decentralized oracle network or blockchain abstraction layer that communicates off-chain data to a blockchain. Its oracles securely enable computations on- and off-chain, supporting what it calls hybrid smart contracts and its cross-chain interoperability protocol.

It's not very likely that LINK will reach $1,000. Though Chainlink can grow in price and has the potential to do so, at $1,000 LINK crypto would have a huge market capitalization, so this is not a likely scenario.

Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met.

According to our Chainlink price prediction, the LINK price might trade between $9.38 and $27.61 in 2024. Chainlink is predicted to hit the $15 mark by 2025. Based on LINK prediction, the coin can trade in a range of $19.03 to $26.67 for 2025.

No, Chainlink is not a scam. Overvalued as of July 16, 2020? Maybe. Chainlink is the leading “oracle” in the crypto space.

But why is Chainlink so important? Chainlink is essential because it significantly enhances smart contract capabilities by allowing access to data outside the blockchain and off-chain computing while keeping blockchain technology's security and reliability assurances.

Coinpedia platform predicts Chainlink could reach $213.1 to $253.51 by 2030, and experts from Changelly forecast that it could reach minimum and maximum prices of $30.69 and $38.26 by the end of 2025.

Chainlink predictions by experts:

5 Chainlink experts predict that LINK's price could range from $25 to $30 on the medium term, $48 to $100 long term.

The price of Chainlink (LINK) can potentially reach $100 in the period mid-2025 to mid-2026. The pre-requisites for LINK to move to $100: get past the $16.91 level in 2024, and clear ATH at $52.70. Chainlink (LINK) is an oracle-based network with a large number of partnerships.

What problem does Chainlink solve? ›

Chainlink has solved the oracle problem of smart contracts by creating a distributed pool of oracles, in each of which the oracles all strive to produce high-quality information. Smart contracts that take advantage of a decentralized pool of oracles improve their reliability.

Chainlink (LINK -1.49%) is a decentralized blockchain oracle network. A blockchain oracle is a service that transfers real-world data to smart contracts (programs running on blockchains). Chainlink allows smart contracts to quickly and securely connect to data sources.

Enterprises that run Chainlink nodes within decentralized oracle networks include Vodafone, Google Cloud, Swisscom, and Deutsche Telekom's T-Systems.

So could Chainlink be the next big thing? Yes, there's a good chance it could. The network provides a solid solution to a real problem, and its use cases will continue to expand as DeFi grows.

Part of LINK's value in the marketplace is really Ethereum (ETH) value, because Chainlink runs on the Ethereum blockchain and relies on Ethereum smart contracts to earn money. First created in 2017, the Chainlink team has so far been able to deliver on its vision of providing accurate external data to blockchains.

These two forms of cryptocurrency also have different uses and purposes. Bitcoin, for instance, was made to provide a digital alternative to fiat currencies, streamlining and securing payments across the world. Chainlink was created to act as a middleware between off-chain and on-chain platforms and systems.