Decentralized oracles are the hot trend and are buzzing in the crypto world right now. The main reasons behind the improvements in development in the oracle world are definitely the DeFi boom. Decentralized smart contract-based applications need real-world information flows that smart contracts cannot access independently given the restrictions of blockchain.
Oracles aims to solve the problem here by connecting the on-chain world with off-chain news sources that further enhance the usefulness of DeFi applications. Blockchain oracles have become all the rage and have also increased the market capitalization of Oracle-based cryptocurrency tokens.
Below are the most important and promising digital assets based on Oracle
Chain link (LINK)
Chain link is basically an oracle or middleware that transfers data from non-blockchain platforms to smart contracts on blockchain. This reduces the likelihood of any errors that may arise by using a single centralized platform.
The Chainlink ecosystem includes over 50 blockchain projects and over 100 software-based companies. In 2020, Chainlink became one of the leading oracle providers in the blockchain industry where partnering with Chainlink was a very profitable business.
LINK Price got off to a very slow start in 2020, priced at $ 2,264, which peaked mid-year at $ 19.1. The price continued to rise in 2021 with the price reduced to $ 11, but seemed to be poised to form a new ATH very soon.
The year 2021 is considered to be one of the most profitable years for Chainlink holders, as the asset is expected to reach new highs frequently. The price of LINK successfully climbed and formed a new ATH at $ 23 initially, then broke to form another at $ 24.35 in a few days.
The price is expected to increase further in 2021 reaching $ 30 by the middle of 2021. Additionally, the price is expected to record annual highs in November 2021 by touching levels above $ 44. In the years to come, the price of the link could increase further to reach $ 100 as well.
Band Protocol is a cross-chain oracle that allows smart contracts to aggregate and connect any external data source or API in a scalable way. Basically, it is software designed to entice users who provide real world data to decentralized applications running on blockchains.
The tape protocol, initially running on the Ethereum blockchain, would create its own blockchain using COSMOS technology when the time comes.
A validator (candidate with the most BAND tokens) plays an essential role in the BAND protocol as it is responsible for verifying transactions and adding them to the blockchain. If they don’t do their job, they can even confiscate some tape tokens they hold.
The tape price has seen a remarkable rise in 2020 from below dollar levels to $ 16. However, the price drops a bit and is around $ 9 by mid-January 2021.
The price is expected to rise further to reach $ 15 to $ 17 by the middle of 2021, which could double by the end of 2021. The price of BAND could possibly reach close to $ 30 by December 2021 and continue to come together in the years to come. By 2025, the price of BAND is expected to reach over $ 250 to over $ 300 as well.
DIA (decentralized information asset)
DAY is essentially an open source financial information platform that uses crypto incentives to research and validate data. It is a non-profit association based in Switzerland that functions as an oracle platform for the DeFi ecosystem.
Essentially, it is a platform that provides access to crowd-verified financial data, enabling a fair and symmetrical financial ecosystem. It aims to provide transparent, secure and verified market data.
DIA had a launch with a price above $ 2 which was short lived and slumped below $ 2 and still below $ 2 at press time. By March 2021, the price is expected to exceed the $ 2 mark and reach over $ 3 by mid-2021.
However, by the end of 2021, in December, the price is expected to drop slightly to levels below $ 3. In the coming years, the price is expected to climb again to over $ 15 by the end of 2025.
Must read: Top 8 cryptocurrencies to consider for investing in 2021
Tellor is a decentralized oracle where Proof of Work (PoW) miners compete to retrieve data and chain it for smart contracts. The Tellor simply creates a system where entities can display the value of the off-chain information and miners will compete to add the information to an on-chain platform.
The Tellor uses its native currency TRB to offer incentives and rewards to miners. Initially, to start mining, the miner must deposit a TRB token as dispute resolution and governance, which will be useful for voting for the validity of the information or data.
The TRB price at the time of writing is around $ 27.26 with a jump of almost 10%. However, by mid-2021, the price is expected to hit levels close to $ 40. And by the end of 2021, the price could hover between $ 45 and $ 55.
Considering the price for the next few years, the price could reach over $ 65 by the middle of 2022 and exceed $ 100 at the end. The TRB price is even expected to exceed $ 230 by 2025.
API3 is a DAO regulated project for building APIs for DAPP called dAPI. It will install, manage, insure and monetize on a large scale. This is essentially a project to build a transparent methodology to collaborate from blockchains to APIs of data providers.
DAPIs are decentralized API services native to the blockchain, built by combining multiple operators and operating Oracle nodes without any intermediary.
If you are looking for currencies with a good yield, API3 can be a profitable investment option. According to active traders and analysts, a long-term increase is expected, the price prognosis for Next 5 years is $ 32,261. With a 5-year investment, the turnover should be around + 432.09%.
Currently, the major oracle-based cryptocurrencies on the market, such as ChainLink and Band, are the most common. It appears that the demand for Oracle in the financial industry as well as in the gambling markets will continue to increase.
However, there is no such thing as the best digital asset to invest because the market is volatile and not yet stable. While choosing which cryptocurrency to invest, you should carefully research and analyze the project roadmap. Also, it is important to select the right investment period and a real platform.