Here at Coinscreed, we recognize the importance of choosing your investments carefully. Chainlink, in particular, is one of the most reliable blockchain solutions on the network, and price predictions for its token have been generating a lot of interest lately.
Chainlink is a decentralized “oracle network” that connects blockchains to external systems. Oracles are third-party entities that translate off-chain data into on-chain smart contracts — a type of self-fulfilling contract on the blockchain.
Its tamper-proof security makes Chainlink’s services particularly suited to industries that deal with owned assets and currency, such as DeFi, insurance, gaming, and NFTs.
If you’re looking for a new asset to trade, we highly recommend Chainlink. Here’s why:
The rise of smart contracts
Smart contracts are sought-after transaction protocols programmed to run automatically once certain predetermined conditions are met. In fact, the smart contract market is predicted to be worth $770.52 by 2028 — which is around a 25% jump from last year’s numbers.
Since they improve security, logistics services like DHL have turned to them to optimize tracking. E-sports platforms like DreamTeam are also utilizing smart contracts for team transactions. Industries that exchange sensitive data daily and have adopted smart contracts, such as real estate, are seeing real potential in Chainlink.
Due to its projected rise in adoption, more people buy Chainlink tokens as a form of investment. This leads us to our next point.
A fast-growing oracle network
Blockchains are necessary for the decentralization and security of transactions, but they are traditionally limited in terms of real-world implementations.
This is where oracle networks like Chainlink come in. For example, if a real estate agent issues a smart contract with a potential buyer, Chainlink will “see” if the money has been transacted outside the blockchain, and inform the smart contract that the condition has been fulfilled.
Chainlink has gained a lot of momentum this past year because of this. In fact, it is the highest-ranking oracle coin by market capitalization at #26 with its closest competitor, UMA, at #193 at the time of writing.
That’s an incredibly large gap. This means that considering the demand for oracles, Chainlink could be an ideal investment to make. In 2021, Chainlink even returned 66% to investors, and in April 2022 had a market cap of over $9.5 billion. And although it has yet to recover some losses that most cryptos have similarly incurred between the end of 2021 and the start of 2022, its price predictions remain largely optimistic.
Growing interest in the blockchain
The blockchain is one of the most transformative innovations in technology today. In addition to the growing popularity of cryptocurrency, more and more businesses are discovering the diverse uses of blockchain and are optimizing their operations with it.
Some of the largest tech companies in the world like IBM and Microsoft are now helping companies implement blockchain technology into their processes. President Biden has also expressed interest in the adoption of cryptocurrency for commercial banking, taxes, and other finance-related government processes.
Government entities like the DFA, DOD, and DHS have also actively engaged with the potential adoption of blockchain for public interest pursuits.
As the interest in blockchain technology and its applications increases, the number of people who discover smart contracts will continue to expand.
This means a bigger playing field and an increase in demand for Chainlink’s services. And as one of the pioneering cryptos to offer oracles, Chainlink has a definite advantage in the market.
Chainlink has an established reputation known for its popularity, reliability, and innovation. If Chainlink co-founder Nazarov’s vision for the platform’s future is anything to go by, it will continue moving towards making invaluable innovations to blockchain technology. So when it comes to choosing an investment set for profitability, Chainlink might just be a viable option.