From the number of touchdowns by a quarterback needs to get in order to reach a milestone bonus to the number of rounds Roy Jones Jr. needs in order to get on another fight card, contracts rely on all sorts of external information for agreement terms to be fulfilled.
In that old world, we had arbitrators that went out to seek and validate that information. In the new world, we have oracles. An oracle is exactly what smart contracts need in order to fully revolutionize the world as we know it.
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If you like money, then please make sure to hit that Subscribe button. And if you want even more crypto info, you can follow me on Instagram, @bitboy_crypto. You get clips and fun memes. In today’s video, we will talk about oracles, what they are and why they are such a cash grab for platforms like Chainlink, Google and more. We’re also going to make some crazy price predictions for the link this year.
Oracle. Let that word sink in. I know it sounds fancy if you don’t know anything about it. It belongs in the same school as words like a monocle and ostentatious, the kind of words you use when you toast with your glass of Dom Perignon while you’re sockless on a yacht, listening to currency on the intercoastal.
Well, in the world of blockchain, oracles have that much swag. Oracles are a huge moneymaker for companies like IBM, Cisco, Intel, Elmec, and, of course, the company with its namesake, Oracle. Oracle Arena is where the Warriors have played for years. So, what exactly is an oracle? Other than a character on the Matrix. Think about when you’re standing at the DMV counter.
They require external validation and information before moving the processes forward. The same is true for a smart contract. The smart contract needs loads of external information and validation in order to function. Contracts, in general, require ongoing terms to be validated in order for involved parties to know that certain stipulations are being met.
Now, as I said in the intro, with the old paper contracts, there were people called arbitrators who sat around desks and updated contract’s stipulations. Arbitrators will collect data like how many touchdowns Kansas City Chiefs quarterback Patrick Mahomes throws on a weekend. Now, in a few weeks, they’re going to play the Falcons and I’m going to be there and he’s going to throw a lot of touchdowns.
But the arbitrators update everything officially in accordance with their contract. However, in the digital world, there’s something called an oracle that can gather all that information automatically.
Imagine that instead of arbiters having to update every single contract with each stat for every player in the NFL, instead, they would use an oracle data feed that could go out and gather all the data points needed for each contract and automatically update them accordingly. I even see this with Madden on PS5 or Xbox.
Then all parties involved would know in real-time exactly where the contract stands without any questions being asked. This is the direction the world is heading to— with smart contracts and decentralized oracle solutions. The decentralized world is coming into shape. Oracles compile information and validate it in an automated and efficient way.
Oracles are especially useful with smart contracts because, ironically, smart contracts are pretty dumb. Most of them are isolated to their own blockchain and are cut off from the outside world and other blockchains. That’s where oracles come in. Oracles gather and collect external data, then interact with the blockchain to feed that external data to it.
The smart contract is then updated with the information required for execution. Oracles can gather information like this for prediction modelling, data aggregation, and just about any market you can think of that would require a feed from external data. Oracles go out and gather the information while the smart contract sits back like Tom Sawyer catches shade under the money tree.
However, less is not more when it comes to data. Data is one of the most valuable assets in the world. So it’s no wonder why many of the world’s largest companies have made it a focal point of their business. And when it comes to information, it’s only good if you know you can trust it. So, the more fully untethered transparency, the better.
That’s why blockchain is so beautiful. Blockchain-based oracle technology grants access to external data with reduced counterparty risk by adding lots of validation. Kind of like what I need all the time. Oracle service providers are some of the highest-paid service providers in tech. The entire industry is worth something in the trillions, and it’s expected to grow over 15% year over year through 2029.
Many of the biggest names in tech have been vying for a slice of the oracle service provider pie. Yum! Industry juggernauts like IBM, Cisco, Intel, Elmec and, of course, Oracle have all gone to collectively spend billions of dollars to strategically acquire a market share for themselves as the oracle industry grows.
Even companies you would never think would be oracle providers have some skin in the game, like Adobe and Salesforce. As you can see, it’s obvious that all of the big names of old tech are getting in on it.
However, there’s a new kid on the block, a new kid who caught a Google partnership in early 2019 and has since been added to Coinbase before it surged over 7,000%. Of course, we’re talking about Chainlink. And hello out there to all the LINK Marines. Actually, hello to everyone, except for the people who doubted LINK when it was below $1. All the real LINK Marines knows that Chainlink is the household name for decentralized oracles.
If you drop that name in your virtual circle of friends, it will give you instant blockchain street cred because I know and you know you’re a gangster. Chainlink has established itself as the premier oracle solution in the decentralized data space. This is what has led to the LINK’s massive and continuously growing valuation. We’re very bullish on the link on this channel.
In the past, we’ve said it would hit $900. Then, in July, I gave you guys an even more bullish prediction from some people saying LINK could go to potentially as high as $2,000 each. However, that was when the price of LINK was still only hovering north of $6. You can see how dead-on right we’ve been with our predictions about Chainlink by watching our LINK video from July 2020 right here.
Of course, we all know what happened in the second half of the year. LINK shot up to an all-time high of $19.83 and became one of the biggest buzzwords to come out of blockchain this year. Of course, hindsight is 2020. In hindsight and in foresight, we are big believers in the power of LINK, though many may have doubted our estimate of $2,000. Now, they can actually see that that price is a very real possibility.
However, just like we’ve seen in the legacy markets, a network is only as good as the data within the network. So the best networks will use multiple oracle providers. This leaves room for coins like the band, Nest Protocol, and a recent competitor, Zoracles, and others competing in the DeFi oracle space to all have massive years in 2021.
So that’s it for this video. Decentralized oracles are changing the way that information is validated for contracts. So what do you guys think? How long will it take for oracles and smart contracts to replace arbitrators and antiquated paper contracts? What do you think the price of LINK will be in 2025? Drop me your comments down below.
That’s all I got. Be blessed. BitBoy out..
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