Bank of America mentioned in their research report that Chainlink could speed up the adoption of next-generation blockchain use. That use will include finance, gaming, gambling, and so on.
Chainlink is considered to be a decentralized, oracle network. It means that Chainlink connects on-chain and off-chain real-world data to smart contracts on the blockchain. Those contracts are agreements on the blockchain that reckon information and pre-check if needed conditions are met.
At the moment, Chainlink consists of $60 billion that has been deposited into smart contracts. By the end of last year, the total value secured had soared from $7 billion.
DeFi offers a fluid financial system open to everyone
Decentralized Finance is financial technology. It allows the removal of control that banks have on money and financial products and services. The main driver of DeFi’s huge growth was Chainlink’s oracle service.
In the cryptocurrency market in 2021, DeFi was one of the defining trends. The industry spiked from $18 billion up to $250 billion. Ethereum is a leading blockchain for DeFi, which is holding a $121 billion total value locked (TVL).
Bank of America stated that crypto is too large to ignore. There must be laws and regulations, despite all the conflicts that banks and crypto have. However, the institution mentions that they are more interested in the digital asset ecosystem rather than the cryptocurrencies themselves.
DeFi has its own digital ecosystem – it has no borders and it is open to everyone. At the moment, the percentage of investors that are using DeFi is around 30%. The reports believe that it will be doubled within the next months.
Many different companies such as Associated Press and AccuWeather, among 800 others, launched oracle nodes to monetize their data. This means that over 1,100 projects leverage Chainlink’s network.
Building smart contracts with Chainlink
Chainlink has produced and generated around 2.5 million random numbers for the non-fungible token (NFT) distribution, as well as gaming. The reports are saying that at the end of 2020, the number was just slightly above zero.
NFTs are the digital asset on the blockchain. They represent ownership of virtual or physical items, such as drawings or music. Any type of NFTs can be sold or rather traded.
Reports said that chainlink’s native token (LINK) is trading near $15,94 at the moment. It used to be the highest in May 2021, up to $52,7. When it first started, LINK was at its lowest $1.80.
It is said that LINK is a great long-term investment. Price prediction research showed that the value of LINK is going to grow up to $42 by 2022 and up to $100 by the end of 2025. Chainlink’s value will surely not go low, but instead steadily grow, as well as its adoption.
Your capital is at risk.
- Bank of America
- cryptocurrency market
- Digital Asset
- financial technology
- Laws and regulations
- non-fungible token
- Price Prediction
- Smart Contracts