Chainlink 2.0 Will Boost the Crypto To New Heights

The world decentralized finance, and in it, the use of smart contracts has been growing at an impressive pace. Oracles are used to ensure the veracity of the information provided to smart contracts, and Chainlink (CCC:LINK-USD) leads the way in this sphere. The roll-out of Chainlink 2.0 can redefine decentralized oracles and propel the price of the LINK token to new heights.

a digital representation of the chainlink (LINK) cryptocurrency
Source: Stanslavs / Shutterstock.com

Chainlink is currently the 14th largest crypto. This month, it has shed close to 43% of its value in line with the broader crypto market. However, over the last year the LINK token has gained an incredible 330%. It is easily one of the best performing cryptocurrencies in the past year, with a substantial growth runway ahead.

With that being said, let’s look at some of the key elements which make Chainlink an attractive investment at this stage.

Chainlink 2.0

The Chainlink network is essentially a network of independent oracles without a unified node network. Oracles act as a bridge between blockchains and other entities, allowing them to interact with other systems effectively. Moreover, they also assist with scalability and security.

Oracle networks aggregate data from several decentralized nodes to reduce the chances of failure in the delivery of data. The latest update to Chainlink takes things up a notch by creating several decentralized oracle networks, which can efficiently transfer data bi-directionally.

Chainlink 2.0 will enable the creation of hybrid smart contracts, which can access off-chain resources. In addition, the new system will facilitate oracles to “arbitrate off-chain oracle disputes.” Two key benefits of the new update include scaling and security.

Scaling is arguably the biggest byproduct of the new system. With hybrid contracts and off-chain computing, blockchains will achieve higher scalability due to constricted on-chain loads. As a result, the decentralized oracles will have higher throughput and low latency. Moreover, security will improve considerably with the use of super-liner staking, which makes manipulation doubly difficult.

All in all, the new system provides unmatched guarantees to its users concerning the veracity, availability, and security of sourcing off-chain data.

Price Prediction 

Chainlink was trading at $11.45 in January, but the price shot up to $51.17 on May 2.  However, when the market collapsed later in May, its price tumbled from $37 to $21. Since then, its price has been swinging wildly.

Overall, the project’s fundamentals are solid for most analysts, and Chainlink has incredibly proactive in launching products and developments in the past year. It is estimated that LINK’s price will reach about $80 to $100 by the next few years.

Analysts at Trading Beasts feel that LINK could trade around $28.58 by the conclusion of this year, reach as high as $43 by 2024. Moreover, Digital Coin expects Chainlink to be trading at roughly $44 at the end of 2021.

Wallet Investor is bullish on Chainlink’s future and feels that its price can go beyond $46 in one year. Based on the current market conditions, it feels it could jump to a whopping $204 by the end of 2026.  Finally, you have Long Forecasts, which feels that the LINK token’s price can trade from $26.50 to $33 by the conclusion of 2021. Additionally, its price could cross $53.20 by 2025.

The Bottom Line

Chainlink is one of the best-performing altcoins in the past year and appears to have a bright future ahead. Its new update will further solidify its position as the go-to oracle in the smart contract realm.

The use of hybrid smart contracts will provide users with unmatched scalability and security. Analysts are mostly bullish on its price for the rest of 2021 and beyond; therefore, the current dip is the best time to scoop the stock at a bargain.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines


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