Chainlink (LINK) Coin Review & Analysis – Chainlink Token Review

Chainlink

Connecting Smart Contracts

ERC20 Token

Connecting your smart contracts to the inputs and outputs it needs.

Building a truly valuable smart contract requires the use of multiple inputs to prove contractual performance, as well as multiple outputs to affect outside systems and/or send payment to complete the smart contract. Chainlink provides your smart contract with the inputs and outputs it needs to reach its full potential.
Smart Contracts provide the ability to execute tamper-proof digital agreements, which are considered highly secure and highly reliable. In order to maintain a contracts overall reliability, the inputs and outputs which the contract relies on also need to be secure. Chainlinks provide a reliable connection to external data, that is provably secure end-to-end.

“Chainlink’s decentralized oracle network provides the same security guarantees as smart contracts themselves. By allowing multiple Chainlinks to evaluate the same data before it becomes a trigger, we eliminate any one point of failure, and maintain the overall value of a smart contract that is highly secure, reliable, and trustworthy.”

Positives

We’ll get the biggest positive out of the way first. Chainlink has a partnership with SWIFT. SWIFT is the largest global provider for secure financial messaging (transactions), it doesn’t take a genius to see why this is an incredible opportunity for the Chainlink Team. Through SWIFT the Team will have access to hundreds if not thousands of high profile banks and institutions around the world. While we have pointed out a potential concern with having such a strong crutch to stand on, Chainlink have a foot in the door, which is a lot more than other fin-tech projects can claim.
Chainlink is very attractive due in part to the history that the Team has in developing & delivering secure and highly scaleable enterprise software. The SmartContract.com (Parent Company behind Chainlink) began work in 2014 but the domain name was registered in 2008, well before Bitcoin was even created. Automation of Contractual agreements/information is a specialty, a stand-out in the Teams resume. 10 Team members and 6 Advisors are listed on Chainlinks Team Page, each member looks like they’ll serve Chainlink well.
From a fundamental perspective, Chainlink has a pretty simple goal. Decentralizing the way Smart Contracts are executed will greatly increase the accuracy and security of information/contracts released using this method of agreement. Right now, smart contracts are dependent on the input of data on “Side A” matching up with what “Side B” requested. If “Side A” has been compromised whether that be by technical fault or malicious action, “Side B” could potentially release sensitive information/payments without verification. Chainlink adopts the idea of using multiple “Oracles” as a way of passing that input through several confirmations before reaching the destination. Very innovative stuff!
Blockchain Interoperability is going to be absolutely vital in getting blockchain tech out in the open where it can be used by a mainstream audience. Not only does Chainlink provide interoperability between chains such as Bitcoin and Ethereum but it even goes as far as to connect already existing systems (Banks, Payment Providers, etc) without the need for extensive alterations in legacy systems. Financial Institutions don’t want to change, we know that already, but by offering a system in which efficiency and security can be improved without the need for major change, Chainlink have a pretty attractive product on their hands.
We’ll speak from an investors standpoint here. The use-case of the LINK token is pretty straight forward. For information to be verified through nodes, these nodes must be compensated for their actions, Users of Chainlink will need to pay these fees in LINK tokens. When you consider the wide reaching opportunities that Chainlink has to grow and expand, the upside potential is incredible.

Concerns

A lot of people will have this same concern, so let’s get it out of the way first up. Chainlink isn’t doing a lot of marketing. It’s worth noting that this type of project isn’t really dependent on adoption from everyday people, they’re more concerned about attracting insitutions and leaders that can actually utilize the technology. Their “Marketing” is in their ability to network effectively. Marketing this project would simply be hyping up investors and increasing speculation around the price of LINK, it’s understandable that Chainlink is keeping their heads down and working hard instead of wasting funds on advertising to traders before their product has been adopted.
Although the partnership Chainlink has with SWIFT is an incredible opportunity for the project to branch out and develop other partnerships/cooperations, this could also be a crutch that Chainlink relies on. Investors need to consider what would happen if their partnership dissolved or was simply no more? The technology wouldn’t change but would a failed partnership have a lasting effect on the way the Team networks and markets to future partners? Something to think about.
We don’t really have any other concerns regarding Chainlink, certainly not from a fundamental point of view. You could point back to their marketing ability and focus in on that, but the fundamentals stay the same. Rate of adoption is the only other minor concern we have at this point. How long will Chainlink take to implement a real, working solution that effects the way financial transactions are performed, how far away is their competitor (SophiaTX, etc) from completing their Roadmap, just general things that investors should really be keeping an eye on regardless of the project in focus.