The lines between the worlds of traditional finance and blockchain finance continue to blur. Theoretically, that should open up enormous opportunities for any cryptocurrency capable of bridging the worlds of Wall Street and crypto.
That’s why I’ve been so bullish on Chainlink (CRYPTO: LINK) in the past. As a blockchain oracle network, it plays an important role in bridging these two worlds, and it is at the forefront of one of the biggest trends sweeping over Wall Street right now: asset tokenization.
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So is it really possible that Chainlink could be a millionaire-maker crypto?
The $100 billion reason to invest in Chainlink
The term “blockchain oracle network” can be a mouthful. It simply refers to a decentralized blockchain middleman that aggregates real-world data feeds and then supplies this information to smart contracts as needed. Once this data is available, smart contracts (i.e., small snippets of executable computer code) can be executed on-chain.
Chainlink is very good at what it does and currently has an estimated 70% market share. No other blockchain oracle network even comes close. That’s due in large part to Chainlink’s close relationship with Ethereum, which pioneered the concept of smart contracts for decentralized finance (DeFi).
These close ties to the world of DeFi are what makes Chainlink potentially so valuable going forward. Chainlink now secures close to $100 billion in total value across DeFi. And it has enabled more than $26 trillion in cumulative transaction volume since its launch in 2017.
Over time, demand for Chainlink’s services is only going to grow. That’s due to the rise of real-world asset tokenization, which is currently projected to be a multitrillion-dollar market opportunity. Chainlink provides the data feeds required to transform real-world assets (such as stocks and bonds) into tokenized assets that live on the blockchain. Moreover, Chainlink has created a new interoperability protocol to help ensure the safe, secure movement of these tokenized assets across different blockchains.
If you buy into the idea of tokenized assets and you believe that the global financial system is eventually going to run on blockchain rails, then Chainlink would appear to be a slam-dunk investment. It’s in the middle of everything. Literally.
