Among the many victims of the collapse of the markets caused by the emergency coronavirus, there is also chainlink, which just like Tezos, had given significant signs of vitality during the period of stagnation that hit the crypto sector after the summer. The cryptocurrency had indeed reached a new all time high of $ 4,89 just before the crash.
Of course it will be interesting to see his reaction force at such a complicated time. Also because the project on which the virtual uniform is based actually seems very interesting. Let's go see why.
Chainlink completed theICO right in the peak of the 2017 cycle. raising 32 million dollars, much less than other projects considered more rampant. 30% of what was collected went to the creators of the platform and the team.
Chainlink is based on Ethereum, but his ambition consists precisely in the solution of some obvious problems that have often slowed him down. The main difference is that if Ethereum smart contracts take place on-chain, the Chainlink platform aims to fill this gap by providing tools to recover off-chain data. The so-called "oracles" are responsible for completing the task. What is it about?
What are oracles
Blocks cannot access data outside their network. To do this you need Oracle, centralized third-party devices, therefore not part of the consensus mechanism on which one is based blockchain. The oracles are able to provide the external data necessary in order to activate the execution of the contract once a predefined condition has been reached. A category that may include a price fluctuation or a payment.
The problem is that the oracles they are not completely reliable. It could therefore happen that the smart contract goes to perform an action based on incorrect information or starts operating too late. The idea on which Chainlink is based is of create a decentralized network of oracles, such as to allow Node Operators to provide data feeds or APIs directly to smart contracts in exchange for connection tokens.
The weight of partnerships
Among the marketing tools used by cryptographic development groups, one of the most effective is represented by theannouncement of the collaborations undertaken. In fact, they are considered a real business card vis-à-vis the outside world, aimed at making people understand the effective validity of the uniform concerned. Ripple it was a precursor in this sense, with a series of announcements aimed precisely at attracting the interest of investors.
Chainlink has also made a name for itself. In particular, there have been rumors relating to one partnership with SWIFT, the international payment system and those on a possible collaboration with Google to push hard on Chainlink's sails. By compensating the critical points of the project.
The critical points of Chainlink
On the other side of the balance, some factors that seem destined to weigh on the project should not be ignored. Starting from the accusations to the Chainlink team of dumping their users, as indeed happened in the past to Ripple. The sale of a quantity of Link equal to 600 million dollars, over a period of about two months, however, is not such an unusual practice. Just think of the sale of the entire quantity of Litecoin held by Charlie Lee, its creator, to better understand what happened.
More interesting would be to understand the destination of these funds, or if they will be reinvested in the development of the cryptocurrency or if they represent the proceeds for the development team. A not really secondary issue.