Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
ChainLink (LINK) Rating = 315/1,000
Technology (0 to 300) = 185
- Speed (0 to 50) = 5
LINK is one of the emerging blockchains with claimed 1,000–10,000 TPS speed and a 5 second latency. It offers a platform for DApps, providing certain APIs for DApp developers. The network also offers smart-contracts, which are currently limited to 10 transactions per second. They also plan to increase this speed over time.
Kraken lists average deposit times at 6 minutes which is not the worst but certainly not great so coupled with the 10 tps limit we are unimpressed.
- Cost (0 to 50) = 10
There is no transaction fee in the LINK platform. However, you may be required to pay a gas fee for the computational resources needed to perform a transaction on the particular Distributed Ledger Technology. Furthermore withdrawal fees on exchanges are very pricey for LINK transfers with fees on Binance currently being around 1 dollar (0.6 LINK).
Since the token is what is used to purchase data on the Chainlink network, users need to buy the token on exchanges to be able to buy data for their smart contracts. There is a fixed amount of LINK tokens, so the more people buy, the more price can go up. For this reason, LINK ranks low on this category. As prices are likely to rise with demand for the token.
- Scalability (0 to 50) = 40
LINK is a highly scalable platform that claims to have completed more than 2 million transactions in 10 days. Thanks to its Delegated Proof of Stake (DPOS) consensus algorithm, it provides Hedera-based applications with the ability to connect to offline data to provide analytics and demonstration of the origin of transaction data. Without ChainLink they claim, smart contract platforms can’t develop too far beyond tokenization.
- Reliability (0 to 50) = 10
The Chainlink network provides reliable tamper-proof inputs and outputs for smart contracts. The platform’s mechanism is based on multiple Chainlinks verifying the same data. Moreover, Smart contracts create a totally new and ideally superior form of agreement which is deterministic and guaranteed in the correct execution of its contractual terms through cryptographic. Thus LINK’s ability for a contract’s practical outcome, such as payment to the correct party to be guaranteed by cryptography is an entirely new method for society to form reliable agreements.
We have had to knock off 30 points for the risk associated with the team.
- Environmental Impact (0 to 50) = 50
The hardware requirements of the Chainlink node are very minimal, which is good for lowering the cryptocurrency’s carbon footprint. For example, ChainLink can be compiled and effectively ran on a Raspberry Pi. You may need to add resources only if your node receives tremendously frequent usage.
- Decentralisation (0 to 50) = 10
ChainLink is developed to function as the first decentralized oracle network, making the data input process fast and secure. In essence, the smart contracts on LINK are being made a lot smarter as the data used to execute can be integrated from more than just within the blockchain. This should make the network a game-changer in decentralization. In reality though Sergey and his team are in full control at the moment.
Security (-250 to 0) = -110
- Reorg, 51% & Brute Force Attack (-100 to 0) = -95
ChainLink is a secure, cutting edge Oracle middleware network that is fully decentralized by being based on blockchain technology. It allows smart contracts to access key off-chain resources like data feeds, APIs, e-signatures, or market data, with little chance of outsiders accessing the data. By providing tamper-proof inputs and outputs for smart contracts, LINK lowers the possibility of a 51% attack to almost zero.
End-to-end encryption across the LINK Network that guarantees data privacy via encryption, and an anti-tampering feature during its journey from the publisher to the subscriber has ensured there are no hacks on the network so far.
With reports already circulating about the risks of an impending exit scam and pump and dumps, LINK potentially carries huge risk. We will have to monitor this closely.
- Potential for Being Banned (-100 to 0) = -25
Chainlink is the first technology that will be able to connect enterprise blockchains, real-world data, and legacy banking solving the oracle problem. This gives it an edge in the crypto space and makes it likely to be adopted on a large scale. More so, LINK has adhered to all the set regulations so it cannot be easily banned.
- Network Vulnerabilities (-50 to 0) = -10
LINK is a digital agreement that is made extremely reliable by being run on a tamper-proof node network, Ethereum. This allows smart contracts on the platform to function with an entirely new level of value and trustworthiness. So far, so good with the smart contracts being developed, but there could be issues as the load increases on the young network.
Use Case (0 to 500) = 250
- Initial Main Use Case (0 to 100) = 50
ChainLink was first launched in June 2017 by a SanFrancisco-based FinTech company called SmartContract.
The network is the first-of-its-kind which solves a unique problem of the blockchain industry by establishing a bridge between the blockchain-based smart contracts and the real-world data.
- Mainnet Live (0 to 200) = 200
The Chainlink network went live on Ethereum on June 1, 2019, enabling the creation of a decentralized oracle network run by multiple independent node operators. It seems a clear increase in demand for reliable decentralized oracle mechanism was what led to the Ethereum mainnet launch.
- Additional Use Cases (0 to 100) = 0
The initial oracle networks on Ethereum will be dedicated to retrieving market prices and feeding them into smart contracts e.g., the ETH-USD conversion rate.
ChainLink’s native token LINK has shown decent performance with the progression of its blockchain project. LINK is currently the 17th most valued cryptocurrency with a market cap of $891 billion.
Crypto casinos are a valid, legitimate and active use case: there are currently no Chainlink casinos or LINK casinos.
- Additional Working Products (0 to 100) = 0
ChainLink has the LINK token, which is based on Ethereum. Link is ERC-677 token, which has all ERC-20 tokens functionality + allows token transfers to contain a data payload. The Link should be possible to store in all ERC-20 compatible wallets
Core Team, Partnerships & Developers (0 to 200) = 0
- Core Team & Developers (0 to 100) = 0
The development team at ChainLink is made up of software engineers, designers, and investors who share the vision of making the next generation of smart contracts a reality. The Chainlink team has established a fair technical reputation and are regularly selected as one of the top blockchain technologies by independent research companies such as Gartner.Though other investigations have proven far less positive.
Steve Ellis, the CTO of Chainlink, was previously a software engineer and team lead at Pivotal Labs, where he worked on securing delicate HIPAA compliant data and building scalable payments automation software. The reputation of Pivotal Labs however seems to be that of a cash grab marketing company.
ChainLink & SmartContract CEO Sergey Nazarov has a history of exit scams and failed projects leading many in the industry to worry that LINK is a pump and dump scheme with a pending exit scam. It has been independently reported that LINK have been regularly dumping on the market.
- Partnerships (0 to 100) = 0
ChainLink has claimed many beneficial partnerships since it came on the scene. This year alone, ChainLink has signed some important partnerships with the likes of ThunderCloud, OpenLaw Finance, and Google Cloud. This gives the network a major push in connecting its decentralized platform with the real-world enterprise-grade databases.
Moreover, developers can apply smart contracts to fraud/failure-prone agreements in activities such as international trade (which regularly leaves suppliers paid late or never), and finance (which often has defective or fraudulent agreements).
Dig deeper however and the Google partnership was based on a blog post by ChainLink themselves and actually has zero substance. Google are not in partnership with LINK.
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