- Chainlink’s tokenization of Real World Assets facilitates access and transparency, revolutionizing interaction with financial assets.
- Decentralized oracles like Chainlink ensure accurate data for smart contracts, essential for security in Decentralized Finance (DeFi).
Chainlink’s Nazarov says Bitcoin ETFs are just the beginning. The really big thing comes with tokenization, which is when you take real things like houses, artwork or company shares, and turn them into those tokens or digital cards on the blockchain (a kind of very secure digital ledger), as we’ve described previously on ETHNews.
This makes buying, selling or exchanging these things much easier, faster and more secure. It’s like taking everything we know from the physical world and making it digital so that it works better and is accessible to more people.
.@chainlink is already working with many of the top asset managers on driving this shift towards on-chain assets that are provablybacked by reliable data. The same security that Chainlink has created for DeFi, will be highly relevant to this next generation of capital markets.…
— Sergey Nazarov (@SergeyNazarov) February 28, 2024
Imagine you want to make sure the rules of a game are followed to the letter, but the game is played in two different places at the same time. You need someone you trust to go from one place to the other carrying accurate and verified messages so that everyone plays fair. That’s more or less what decentralized oracles do in the cryptocurrency world.
Chainlink is like that super-trusted messenger in this game
It helps real-world information (like prices, event outcomes, etc.) can be used on the blockchain (the place where cryptocurrencies are stored and moved) accurately and securely.
This is very important for smart contracts (digital agreements that are automatically fulfilled) to work correctly, especially when they are related to real assets such as properties or stocks that have been converted into digital tokens.
An example of how this works, you can read here on ETHNews, this in practice is Chainlink’s collaboration with major asset managers such as Ark/21Shares. They use Chainlink’s technology to prove that the asset holdings they claim to have actually exist. Thus, more and more real-world assets could start to be managed on the blockchain with the help of these oracles, making the whole system more robust and reliable.
Nazarov’s perspective on the evolution toward RWA tokenization by asset managers, supported by decentralized oracle networks, anticipates a merger between traditional and digital finance. This shift promises not only an improvement in asset management but also a boost in integration and innovation within the crypto space, which we discussed in ETHNews.
Recent technical analysis of Chainlink (LINK) indicates a positive trend in its price. Currently, LINK is trading at $20.055 USD, showing an increase of 4.00%.
Over thelast week, LINK’s price has seen a 10.63%increase , and over the last month, it has seen an impressive 29.33% increase. Looking further back, over the last six months, LINK’s price has risen 235.55%, and since the beginning of the year, it has increased by 34.18%.
Based on this analysis and taking into account recent price patterns, as well as strength in trading volume and market interest, I forecast that the price of Chainlink (LINK) could reach approximately $22 USD in the short to medium term. This projection is based on the continuation of the current positive trend and stability in the cryptocurrency markets.
