Chainlink had not seen a big price increase since its inception. But the year 2020 seems to give wings to this promising currency. Why? The development of this currency was strongly driven by 5 things:
- The development of its own blockchain and various applications that are connected or linked to it.
- The development of the challenge.
- Chainlink is connected to more and more blockchain.
- Institutional investors invest in their currency or connect to this blockchain.
- Strong partnerships with strong economic actors.
How does the Chainlink project work?
The Chainlink project connects external data to blockchains with blockchains. Chainlink thus acts as an oracle that allows to link external information to blockchains to transcribe them within smart contract or to integrate them into complex decentralized systems. Chainlink allows different blockchains to work better. Here are some blockchains that communicate with Chainlink.
Why do blockchains need Chainlink?
Interoperability. For more complex services to develop and communicate, they need an oracle. And this Oracle is Chainlink.
What are the advantages of Chainlink?
- Little competition.
- Very secure.
- Strong demand for the need Chainlink meets.
- Lots of partnerships in the world of finance.
- Boost the capabilities of many blockchains.
What are Chainlink’s disadvantages?
- Marketing. Very few people know this project while it is extreme carriers. In future, the team will have to improve in order to better work on its image!
- High dependency with SWIFT. A bad announcement regarding this partnership could plunge the courses. You need to watch this point if you have Chainlink.
What happens with the prices?
In 2020, prices skyrocketed. They had been very quiet until then. This is mainly because the Chainlink project team communicates very little. But the good news cannot remain hidden for long, a small reminder of the evolution of prices.
Chainlink will certainly start a new phase. Currently it was in a “0” price phase, which meant that price prices were very low and stable due to the lack of awareness of the project by the general public. Since June 2020, Chainlink has entered a ‘’1’ phase, many professionals are interested in Chainlink. Attention must be paid to the entry into phase 2, which will be a massive adoption by a large part of the public. Once these different phases have passed, the cryptocurrency will enter a ‘’3’’ phase, which could be called ‘the maturity phase’, possibly in this phase, prices will be more stable and will follow BTC prices more closely. The different market phases I’m talking about don’t come out of nowhere, because you can see them on currencies like ETH, BTC, LTC, ....
Good luck if you invest and never forget to diversify your investments and keep you informed of important news related to your cryptocurrencies.