ChainLink (LINK) Review
An independent analysis on ChainLink (LINK)
Creating a secure link between real-world data and the blockchain ecosystem
Overview
ChainLink (aka Link Network) is a product by the team at SmartContract and has been in development since 2014.
The startup seeks to solve a significant problem in the world of blockchain innovation by deploying a solution to interact with external and centralized data-feeds.
In brief, the goals of the ChainLink technology are the following:
1) to provide a secure and decentralized middleware known as ‘oracles’ that can be used to communicate with centralized data feeds
2)to become a standard solution for such use cases as financial data, financial agreements, insurance, etc.
3)to combine and interact with other off-chain services such as payment gateways, execution of contracts and other actionable services on any API
Token Sale
Under the code LINK, ChainLink is issuing a total of 1 billion tokens. The hard cap associated with the sale is ~$35m with a bonus stage of 20% applicable.
Only 35% of the tokens are being offered to the public, meaning a total market cap of +$90m will apply if the upper limit is reached.
The remaining 65% of tokens will be split between an incentive ecosystem (35%) and development capability (30%).
There is a lack of specific detail regarding budget and operating expenses (OPEX) in the white paper as it is predominantly technology focused.
Tokens for Investors
The tokens received by investors after the fundraising period (LINK) are predominantly supposed to be used as currency on the ChainLink platform as transactional tokens between data providers, operators and payment providers. Essentially, the more users associated with the platform, the more traction the currency gets, therefore leading to a higher token value based on the growth of the ecosystem.
It is also anticipated that LINK will be available for trade on the exchange.
Commercial Strategy
The commercial strategy of the venture including a detailed roadmap was not communicated to any significant extent in the white paper.
The technical strategy is communicated thoroughly and highlights the roadmap of development as well as how the team plans to overcome any obstacles.
ChainLink will support Bitcoin and Ethereum amongst other cryptocurrencies. It is expected that the middleware will gain significant traction in providing such flexibility.
A number of targeted use cases are mentioned by the company which is where the greatest chance of market penetration will likely be.
Strengths
•ChainLink is solving a significant problem in establishing a secure, and trustless link between blockchain and off-chain data feeds.
•The possibilities of commercial opportunity using ChainLink are endless. The likes of finance, legal, gambling, payments and anything else which is data driven can be disrupted and innovated on a new level by using this ‘middleware.’
•ChainLink already has an established partnership with SWIFT, a banking and transaction company. SWIFT have already used and validated the concept of some of ChainLinks technology. This provides an easy entry point to cooperation with other financial institutions.
There’s more…