What are Smart contracts?
Smart Contracts are pre installed algo’s that allow a certain action to be executed when certain conditions are met. It can be thought of an If Else statement. These statements are already programmed in the system and hence is totally automated and hence removes the need for 3rd party softwares.
The uses of Smart Contracts are as follows:
- They are time saving and quickly work eliminating the use of other party
- They are cost effective and remove the heavy fee that is used up during transactions.
- They are trustworthy and results in secure and traceable transactions.
What is Chainlink (Link)
Chainlink (LINK) was founded in 2017 that enables smart contracts. Through their oracle Link allows different blockchains to connect external feeds and systems and allow the data sharing by their smart contracts.
The whole network is driven by a number of nodes, developers and many more. The company makes sure that the decentralized nature remains. Chainlink is one of the first companies to allow the connection of smart contracts and off-chain data. As a result some of the biggest data providers such as Huobi are their partners.
The network is based on (Proof-of-Stake) PoS mechanism, as compared to the (Proof-of-Work) PoW mechanism used by Bitcoin. PoS uses the amount of Tokens staked to select the node validators.
The maximum amount of Link is 1.0B tokens. The current supply is around 45% of the maximum. According to the ICO documentation, 35% tokens were distributed in public sale. 35% of the total will go towards the node operators as incentives. The last 30% went to the company itself for the development of the project.
At the time of writing Link is being traded at the price of $26.04. It has shown an increase of just 0.76% in the past 24 hours. The daily trading volume of Link has increased to by almost 50%. Link created its All Time High on 5th May 2021 and reached a price of $52.88. Link is listed on 17th spot on coinmarketcap with the total dominance of 0.47%.
Long Term Plan
Traders are quite bullish on the price of Link. According to Wallet Investor, Link will reach a price of almost $120 in a five year plan. In a one year plan, the price is expected to reach a price of almost $45. But traders have really high hopes as compared to the predictions set by Wallet Investor.