Chainlink has been seeing great gains, and the really followed through in the crypto crash last week.
We can see the ribbon has now flipped with price above the ribbon, and as usual we should see a test of support around the $30 price range before we attempt to locate our new .
Personally I am in LINK for the long haul. Chainlink 2.0 is significant (whitepaper available below) and the latest interview with Sergey Nazarov and Lex Fridman sold me on the practical use case.
Some things I learned:
- Nazarov seems to have created a product that is literally going to improve the world, offering real practical application of DeFi (crop insurance ) into emerging markets brought together with smart contracts to reduce risk for the issuer.
- The smart contract is like a really good vending machine but LINK enables taking factors outside of the blockchain such as weather and using this additional data to determine the outcome of the smart contract. The integrity of this “third party” data that originates outside of the blockchain is imperative, and they seem to have a compelling product here that seems to be essential for the practical application of DeFi. DeFi is an emerging market, but following that interview I felt much more comfortable understanding where DeFi is really targeted, and the answer is: Emerging Markets.
-This was likewise his explanation of why products like BlockFi paying 8.6% yield on a USD position can pay 8.6% for you to literally hold totally liquid dollars. Keep in mind I am still stuck in American Airline Junk bonds I can not unload with a 3.4% coupon with lots of inherent risk within American Airlines. 8.6% to hold a dollar position is remarkable, and it is because these applications are targeting emerging markets where rates are even higher, but the capacity for production is also likewise very high.
- Chainlink is an emerging market servicing emerging markets initially. Linking outside events to the blockchain to facility a trustworthy action so someone with a $30 Android phone in a country with poor infrastructure, a shoddy government, and weather issues the ability to tap into products like insurance and not have to worry about his local insurance company dragging on the claims settlement for years, and perhaps not honoring their agreement. LINK will bring accountability and lower costs for emerging markets.
-High tide raises all ships friends! :)
- One other interesting tidbit is the SWIFT relationship with Chainlink. Many may not know that the SWIFT system enables transfers of money overseas.
-Chainlink and SWIFT formed a relationship back in 2016 when Chainlink won an award at the Innotribe Industry Challenge event by SWIFT. Chainlink touts:
“We’re proud to be working with SWIFT on their own SWIFT Smart Oracle . Allowing smart contracts on various networks to make payments, send governance instructions, and release collateral with over 11,000 banks.”
If you are a fan of LINK hit the like button or have an alternative analysis please be sure to share in the comments below!
White Paper: https://research.chain.link/whitepaper-v2.pdf
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