What Is Chainlink (LINK)?

Chainlink is a decentralized oracle network that connects smart contracts to real-world data sources. In simple terms, Chainlink acts as a bridge between the blockchain and external data such as market prices, weather forecasts, sports scores, web APIs, and traditional bank payments. 

Chainlink's technology allows smart contracts to interact with data sources without compromising the security of the network. Chainlink nodes act as a decentralized network of oracles that fetch and verify data, making it accessible to smart contracts.

History of Chainlink (LINK)

Chainlink was founded in 2017 by Sergey Nazarov and Steve Ellis. The two co-founders recognized the need for a decentralized oracle network that could securely bridge the gap between blockchain technology and external data sources.

Chainlink held an initial coin offering (ICO) in September 2017 and raised $32 million in funding. In June 2019, Chainlink launched its mainnet, enabling the use of its decentralized oracle network in production environments. Since then, Chainlink has continued to grow and expand its network, partnering with major companies and organizations such as Google, Oracle, and SWIFT.

How Are New Chainlink (LINK) Tokens Created?

Chainlink uses a Proof-of-Stake (PoS) consensus mechanism to create new LINK tokens. Validators stake their LINK tokens as collateral to secure the network and validate transactions. In return, validators receive a portion of the transaction fees generated by the network.

How Many Chainlink (LINK) Tokens Are There?

As of April 2023, there are approximately 517 million LINK tokens in circulation. The total supply of LINK tokens is capped at 1 billion, with no plans to increase it. As per the initial coin offering (ICO) papers, 35% of the complete token supply will be allocated to node operators and incentivizing the ecosystem. Another 35% of LINK tokens were dispersed during public sale occasions. The remaining 30% of the overall token supply was designated to the company for further growth of the Chainlink ecosystem and network.

Recent Market Performance

Chainlink has experienced significant growth since its launch in 2017, at a price of $0.11. As of April 2023, Chainlink is ranked as the 19th largest cryptocurrency by market capitalization, with a market cap of around $3,7 billion. Since May,  2022, Chainlink’s price has experienced some volatility, but has remained relatively stable around the price of $7.

However, like all cryptocurrencies, Chainlink's price can be volatile and subject to market fluctuations.

Why Is Chainlink (LINK) Valuable?

Chainlink (LINK) is a decentralized oracle network that solves the long-standing problem of secure and reliable data transmission for smart contracts. It connects smart contracts with real-world data, enabling them to operate in a secure and trustless manner. The traditional centralized data sources have significant drawbacks such as single points of failure, privacy concerns, and risks of tampering. With Chainlink, smart contracts can access reliable and high-quality data from a variety of decentralized sources.

Chainlink is solving real-world problems in supply chain management, insurance, finance, and gaming. With Chainlink, supply chain managers can access real-time data from various sources, including GPS trackers, temperature sensors, and other IoT (Internet-of-Things) devices, ensuring the transparency and security of the supply chain.

Chainlink has formed partnerships with many companies and projects in the blockchain space. For instance, Chainlink has partnered with Polygon (formerly Matic Network), which is a Layer 2 scaling solution for Ethereum. This partnership enables Chainlink to provide decentralized oracle solutions to Polygon's ecosystem, allowing developers to access secure and reliable data feeds.

Chainlink has also partnered with Google Cloud to provide data to Google's BigQuery, making it easier for developers to build and test smart contracts on the platform. Furthermore, Chainlink has partnered with Swift, which is the world's leading provider of secure financial messaging services, to enable smart contract access to Swift's global financial network.

LINK, the native token of the Chainlink network, is used to pay node operators for their services and secure the network. Additionally, LINK is used for staking, which allows users to earn rewards by helping to secure the network.

How to Buy & Store Chainlink (LINK)

You can simply buy Chainlink (LINK) on the Coinmetro exchange in just a few seconds. Sign-up for an account, if you are not already registered, deposit funds instantly and buy LINK and 60+ other crypto assets with just a few clicks. 

How LINK Tackles the "Oracle Problem"

One of the biggest challenges facing smart contracts is the "oracle problem." Smart contracts need to access reliable and accurate data to function properly. However, there is a risk of data tampering and manipulation when relying on centralized data sources. The Chainlink network solves this problem by using a decentralized network of node operators to provide secure and reliable data to smart contracts. The node operators are incentivized with LINK tokens to ensure the accuracy and integrity of the data they provide.

Staking LINK

LINK holders can stake their tokens to help secure the network and earn rewards in return. Staking involves locking up LINK tokens for a period of time and contributing to the security of the network. The more LINK you stake, the higher your potential rewards.

Chainlink (LINK) Price Analysis

Chainlink (LINK) has had a volatile price history, with dramatic price swings in both directions. The coin had an initial coin offering (ICO) price of $0.11 in September 2017, and its price surged to an all-time high of $52.88 in May 2021. However, the price has since retreated and currently hovers around $7 (as of April, 2023).

Historical Price Trends

Chainlink (LINK) has experienced a meteoric rise in value since its launch in 2017. In early 2019, the token was trading at less than $0.50, but by August 2020, its price had soared to over $16. The cryptocurrency experienced another price rally in the 2021 bull market, with the LINK price surging to an all-time high of $52.88 in May 2021.

Supply and Demand

Chainlink (LINK) has a total supply of 1 billion tokens, with a current circulating supply of approximately 517 million. As more and more industries and businesses adopt blockchain technology, decentralized applications and IoT technology, the demand for Chainlink (LINK) is expected to rise significantly. With its unique solution to the "oracle problem," LINK has established itself as a key player in the growing DeFi space. As more projects and platforms utilize Chainlink's services to securely and efficiently access real-world data, the demand for LINK is likely to continue growing. 

Price Drivers

Several factors have driven the price of Chainlink (LINK) in recent years. The cryptocurrency has benefited from the increasing popularity of DeFi applications, which rely heavily on accurate and reliable data from oracles like Chainlink. Additionally, the network has formed partnerships with major companies, including Google Cloud, to integrate Chainlink’s services. The growing adoption of blockchain and IoT technology and the potential for Chainlink to play a crucial role in the development of decentralized applications has also contributed to the coin's value. 

Chainlink (LINK) FAQ

What Is Chainlink Price Right Now?

As of April 2023, the price of Chainlink is around $7, being ranked as the 19th largest cryptocurrency by market capitalization, with a market cap of around $3,7 billion. Chainlink has experienced significant growth since its launch in 2017, at a price of $0.11. Since May,  2022, Chainlink’s price has experienced some volatility, but has remained relatively stable.

How Much Will Chainlink Be Worth in 2025 and 2030?

Predicting the price of Chainlink (LINK) in 2030 is difficult, as many factors can impact the value of the asset over time. However, looking back, LINK has already had a remarkable journey, from the initial price of $0,11 in 2017, to the current price of around $7 (as of April, 2023).

One of the main factors that could drive up the price of Chainlink (LINK) is the continued growth and adoption of decentralized finance (DeFi) applications and Internet-of-Things (IoT) technology. With this, the demand for secure and reliable oracle networks like Chainlink will only increase, which could drive up the price of LINK tokens.

Is Chainlink a Good Investment? Why Is Chainlink so Valuable?

As a decentralized oracle network that enables smart contracts to operate securely and efficiently, Chainlink has garnered partnerships with prominent companies in various industries, such as Google, Swift. These partnerships have significantly increased the network's adoption and created more use cases for the Chainlink token (LINK).

Moreover, the demand for LINK has been steadily growing, particularly in the decentralized finance (DeFi) sector, where it is used as collateral for loans and as a means of payment. Additionally, the token is used for staking, which enables users to earn rewards by helping to secure the network.

As with any investment, it is important to conduct thorough research and consider factors such as market volatility, technological advancements, and regulatory developments before investing in Chainlink. However, given its growing adoption and utility, many experts believe that Chainlink may be a good long-term investment option.

Which Is Better: Polkadot or Chainlink?

When comparing Polkadot and Chainlink, it's important to understand that they serve different purposes in the blockchain ecosystem. Polkadot is a multi-chain platform that enables the interoperability of different blockchain networks, while Chainlink is a decentralized oracle network that connects smart contracts to real-world data. Both have their unique strengths and use cases.

Polkadot's interoperability is a major advantage for developers and projects that want to work across multiple blockchains. This can lead to more efficient and cost-effective development as well as increased accessibility to a wider range of applications. On the other hand, Chainlink's decentralized oracle network provides a solution to the "oracle problem" in smart contract execution, ensuring the security and reliability of data inputs.

Ultimately, which one is better depends on the specific needs of the project or developer. If interoperability and multi-chain functionality is a top priority, Polkadot may be the better choice. However, if secure and reliable data inputs are necessary for smart contract execution, Chainlink may be the way to go.

Who Is the Competitor of Chainlink?

When it comes to decentralized oracle networks, Chainlink (LINK) is often regarded as the market leader. However, there are several competitors in the space that offer similar services. Some of the most notable competitors of Chainlink include the Band Protocol (BAND), API3 (API3), and Tellor (TRB). These projects all aim to solve the problem of securely and reliably connecting smart contracts to real-world data sources, just like Chainlink. Each project has its unique strengths and weaknesses, and the choice of which to use ultimately depends on the specific needs of the user.

Who Invested in Chainlink?

Chainlink (LINK) has received investments from various companies and individuals in the cryptocurrency and blockchain industry. In 2017, Chainlink conducted an initial coin offering (ICO) that raised $32 million. Some of the prominent investors in the ICO were Pantera Capital, Blockchain Capital, and Link Ventures. In addition, Chainlink has also received funding from venture capital firms such as Sequoia Capital, as well as strategic partnerships with companies like Google Cloud. The strong financial backing and strategic partnerships indicate a high level of confidence in the Chainlink project and its potential for growth and adoption.