Let’s talk about the valuation of $LINK again Blockchain i | Crypto飞哥 on Binance Square

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Let’s talk about the valuation of $LINK  again
Blockchain is a closed system that requires oracles to link with real-world data to unlock greater application potential. Oracles like LINK play an important role in this, and with Chainlink, which has a monopoly advantage in the general oracle space, launching Chainlink Function, developers will be able to connect any external API on a decentralized oracle network more flexibly for custom computations and data processing.
LINK is the native token of the Chainlink network, used for payments and incentives. Nodes must stake LINK to provide services, and if they perform poorly, they may be penalized. This mechanism ensures more reliable data and enhances system security.
In addition to basic data transmission, Chainlink can also be used in scenarios such as lotteries, blockchain games, and NFTs, making the entire process more transparent and fair, truly achieving "no backend black box operation".
In terms of valuation, it can be simply seen as a “supporting merchant” for large platforms like ETH, with a current market cap of $11.2 billion, which is considered a reasonable position. If one day the market cap falls below $5 billion, that might be an opportunity to buy at the bottom; if it rises above $50 billion, one should be cautious of overvaluation bubbles.
Of course, these valuation judgments also depend on changes in ETH's market cap; ETH's fluctuations will directly affect LINK's potential. Currently, LINK's price is near the lower limit of reasonable valuation; the opportunity is not particularly obvious, but there is still long-term potential, making it suitable for patient investors to wait for better opportunities.

Crypto飞哥

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Yesterday during the live broadcast, someone asked about the opinion on $LINK .

I have previously mentioned the opportunities in RWA (Real World Assets). There are still many technical challenges to overcome in this field, the most crucial being how to connect information between the real world and on-chain systems.

This leads us to a key component: the oracle. It serves as a bridge connecting on-chain and off-chain data, allowing smart contracts to access information from the external world. Oracles are used to solve this problem.

In reality, most of our transactions rely on centralized platforms like Taobao and Amazon for trust. If these transactions move on-chain, issues arise: who proves that the item is yours? How do we ensure that the asset is real and undisputed? What happens in case of a dispute? These issues of rights verification almost always require an oracle to address.

Currently, financial assets are the easiest to put on-chain because they are inherently virtual, such as stocks, bonds, and tokens, which do not involve physical delivery. However, putting real assets like property and gold on-chain involves complex factors such as ownership rights, mortgage status, and legal disputes, which cannot advance without an oracle. It’s like breaking a house into ten thousand tokens; it seems simple, but verifying ownership, mortgage status, valuation changes, etc., requires off-chain data support at every step.

Typical smart contract scenarios such as financial contracts, insurance, and stablecoins also heavily rely on oracle support: without access to prices, asset values can't be determined; without understanding real situations, it's impossible to judge whether to pay out claims; without knowing the market status of collateral, maintaining the collateral rate becomes impossible.

Oracles are the core infrastructure for the realization of RWA in blockchain. Without them, the on-chain world resembles an information island. The current mainstream approach is to operate oracles as off-chain systems, using independent nodes to fetch and verify data, then writing the results into the main chain, while also employing technologies like zero-knowledge proofs to ensure security and credibility. Oracles are the “information entry point” of blockchain. Without this entry point, most applications cannot truly function.

We have clearly explained the concept of oracles and why they hold such an important position in the future blockchain world. They are absolutely indispensable infrastructure for large-scale applications of blockchain in the future. LINK, as a leader in the oracle sector, is why I see great potential in it.

Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.