A year-to-date chart of the LINK price.OpenMarketCap
The bitcoin price has roughly tripled since the start of the year, and most people have associated the price movements with the hype around Facebook’s upcoming Libra cryptocurrency — even though Libra is very different from Bitcoin.
While bitcoin has been on a tear this year, nearly all of the major altcoins have not been able to keep up with the world’s first, biggest, and most popular cryptocurrency. In fact, Bitcoin SV (BSV) and Chainlink (LINK) are the only two alternative tokens to be up against bitcoin over the past three months, according to Longhash.
BSV is mainly backed by a cult of personality around someone who has claimed to be Bitcoin creator Satoshi Nakamoto but never been able to prove it. In fact, many in the crypto space have referred to him as an outright fraud or scam artist.
On the other hand, LINK is the token associated with a project attempting to solve Ethereum’s oracle problem. LINK would not have been considered a major crypto asset at the beginning of the year, but the token is up 839% against the U.S. dollar so far, according to OpenMarketCap.
What is Chainlink?
The oracle problem is basically that smart-contracting platforms like Ethereum have no knowledge of real-world data. This effectively means that, for example, a simple smart contract where two Ethereum users bet some ether on the outcome of a sporting event will involve a trusted third party to decide who won the bet after the event is over.
Chainlink’s solution to the oracle problem involves the use of a decentralized network of oracles to lower the risks associated with placing trust in a single third party. After all, one of the key tenets of this technology is that trusted third parties are security holes and should be avoided at all costs.
While Chainlink uses mechanisms like collateral reputation to improve the reliability ...