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One Oracle, multiple narratives, infinite use cases, this is Chainlink.
It’s been a while since we’ve taken a deep dive into the Chainlink protocol and it’s about time we step back in to see if $LINK is on the cusp of pumping to new ATHs!
What is Chainlink?
Chainlink was first launched in 2019 and is the leading blockchain Oracle network built on Ethereum that unifies blockchains, protocols, and the entirety of Web3 to off-chain data sources. Without a doubt, Chainlink is integral to a healthy and successful world of DeFi.
How Does Chainlink Work?
Blockchain networks, smart contracts and DeFi protocols utilize Chainlink to gain access to an array of off-chain data resources such as APIs, payment processors, weather data, verifiable randomness, automated functions, and most importantly, tamper-proof price data and much more.
Chainlink provides a seamless connection between the real world and the blockchain, enabling Chainlink to provide many use cases for many industries and protocols including DeFi, GameFi, NFTs, insurance, weather markets, enterprise, payment services and most importantly the tokenization of real-world assets!
Chainlink Ecosystem
After building for over five years and linking the largest blockchain networks such as Ethereum, Avalanche, Base and many others, Chainlink has garnered the biggest and best DeFi protocols within them such as Aave, dYdX, PancakeSwap and more legendary dApps.
Chainlink Partnerships
Excluding the enormous array of networks and protocols in the ecosystem, Chainlink has also partnered with top-tier companies including Microsoft, PayPal, Visa, HSBC, Vodaphone and many more that are ready to take the jump to the new age of the internet.
Clearly, Chainlink is onboarding the finest companies in the world. As the list and connections continue to grow, we could very well see major investment firms take a liking and supposedly, rumour has it that BlackRock has been buying up $LINK tokens…
Chainlink Token ($LINK)
Let’s narrow down the limited but essential use cases behind $LINK. Firstly, $LINK is primarily used to pay node operators to obtain off-chain data for the blockchain. Secondly, $LINK is staked and used as collateral by node operators to secure the network.
Finally, as $LINK is used to pay for Oracle services, those tokens are then burned and the reward tokens they receive are newly minted $LINK tokens, eventually reducing the supply with this deflationary mechanism. Overall, these tokenomics create a healthy ecosystem for the Chainlink network.
Conclusion
According to CoinMarketCap, at the time of writing, $LINK is ranked the 14th largest crypto with a market cap of $7.15B and a price of $11.42 per token. In the previous bull run of 2021, the $LINK token reached an ATH of $52.88. Now, with more partnerships, developments and a Web3-ready world, what new highs can $LINK achieve?
With all of these use cases, partnerships, integrations and products all under one umbrella, Chainlink is poised to be at the forefront of the #Web3 revolution…
Official Chainlink Links
Disclaimer
The content provided in this article is purely informational and nothing said is financial advice. Proceed with caution and always invest what you are prepared to lose. Remember that you are entirely responsible for your assets and investments and the author and the publication do not endorse any of the cryptocurrencies, protocols and/or strategies in this article.
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