With our recommendation of Chainlink in the December 2018 issue, we introduced oracles (LINK). Oracles are programs with a single goal: to connect blockchains to reliable, up-to-date real-world data. The information could be the current Ethereum (ETH) trading price on Binance or the price of a gallon of milk in Hoboken, New Jersey. It could also be the temperature in New Delhi, India, or the outcome of a baseball game involving the Pittsburgh Pirates. You can use smart contracts with real-world data that has been stored on a blockchain. (Smart contracts are computer programs or protocols that execute automatically when certain criteria are met.) Platforms for crypto lending and borrowing are a good example. A borrower could put ETH in a smart contract and use it as collateral to borrow Tether (USDT). Over time, the borrower pays interest on his or her loan. He or she can keep the loan indefinitely as long as the collateral does not fall below a certain amount.
But how does the lending platform know the borrower is keeping the right amount of collateral on hand? By putting faith in the price feeds of an oracle. It informs the lending platform of the value of the borrower's collateral.
In our April issue, we emphasized the importance of oracles by recommending Tellor Tributes (TRB) and Band Protocol (BAND). In May, we closed our Chainlink position for a 596 % gain, and in August, we closed our Band Protocol position for a 1,169 % gain. Crypto Capital was inducted into the Stansberry Research Hall of Fame for both of these achievements. When Tellor tripled in July, we took our initial capital off the table by selling one-third of our position. In the remaining position, we're currently up 417 %. Today, we're recommending the oracle story's sequel... triggers.
Oracles, as previously stated, pull data and information from the real world and place it on the blockchain. Triggers have the opposite effect. They take information and events from the blockchain and use them to "trigger" something in the real world.
Here's an illustration... We've previously discussed smart contracts, which allow people to pay for things with tokens, such as airline tickets. The transaction is automatically recorded and added to the blockchain ledger by the smart contract. But how can the smart contract trigger the issuance of a boarding pass now that the payment has been made?
We need a piece of technology that can monitor the smart contract and, when certain conditions are met, trigger a real-world action, such as generating a boarding pass on the blockchain and sending it to your phone.
Triggers could become just as important as oracles as another critical component of the blockchain infrastructure.
This is where PARSIQ (PRQ) enters the picture... PARSIQ, based in cryptocurrency-friendly Estonia, has developed a technology platform that acts as a link between the blockchain and the real world. The platform tracks on-chain activity and takes action based on the information. The platform and all activity on it are powered by PRQ, an ERC-20 token.
PARSIQ claims to be able to help everything from traditional financial institutions to decentralized finance ("DeFi") projects, but it plans to go much further. By looking at its pricing structure, we can see this. To begin, PARSIQ provides free accounts that anyone in the world can use for simple triggers like automatically posting to an online chat account when a specific event occurs. This should appeal to the billions of people who want to share current information on the internet or receive a message when a trigger is triggered. A paid account is best for large corporations and enterprise clients who need to integrate triggers into a large number of transactions, such as our airline example. Any interaction or piece of data could set off a transaction or response... the possibilities are endless. There's also a freemium account level called "Hodlium" by PARSIQ, which is a combination of the crypto Internet meme "hodl" and "freemium." With a Hodlium account, you must have a certain amount of PRQ tokens in order to access triggers. Each trigger you create, as well as each address or smart contract you keep an eye on, costs tokens. A small business, for example, can set up a Hodlium account to notify customers when their account balances change or when an order is placed without having to maintain an expensive and time-consuming database. PRQ is required for all of PARSIQ's triggers to function. Users of the free and paid accounts, however, are not required to have PRQ. PARSIQ has a system in place to handle the conversion of activity or fiat payments into PRQ so that the customer doesn't have to. The most important thing PARSIQ's pricing plans show us is that it has a real product that is already in use.
PARSIQ has launched a well-designed, user-friendly portal. This is possible because PARSIQ has developed its own programming language, ParsiQL, which handles complex operations behind the scenes.
Here's where you can try out the PARSIQ portal for yourself. You can create or set up a trigger in minutes. For example, if you receive a crypto deposit in one of your wallets, you could simply set up a trigger to notify you. You'll soon be able to add "reverse triggers" as well. You'll be able to set up triggers that monitor the real world and then automatically trigger blockchain-based transactions, rather than monitoring blockchain transactions to trigger real-world events. For example, if my bank savings account balance exceeds a certain amount, open my crypto wallet and exchange some Dai (DAI) for Wrapped Bitcoin (WBTC). The reverse trigger will automatically execute once it has been activated. PARSIQ has over 30,000 registered users and is in the process of forming partnerships and integrations with some of the industry's biggest players, including crypto analytics platform Bloxy, oracle provider Chainlink (LINK), and trading platform CoinMetro (XCM). It's also working on even more new ideas. Tom Tirman, the CEO of PARSIQ, and I recently spoke about the project's future. He told me that PARSIQ plans to launch "PublicProjects" in early 2021, where you can set up a trigger and then share it publicly. Popular public triggers can even be turned into sources of income for their creators. PARSIQ is also getting ready to launch its IQ Protocol, which will be open-sourced and allow third parties to integrate PARSIQ technology into other projects like DeFi. This upgrade is expected to take place in the first quarter of 2021. Next year, the project intends to expand its client base by targeting large corporations and businesses.
Now let's see how PRQ stacks up on our UPDRAFT system...
The Risks of Buying PRQ There's no assurance that PARSIQ will achieve its objectives, and having paying customers is critical for long-term success. If PARSIQ fails to attract a large user base, token demand may never materialize. To date, 104 million tokens out of a total of 500 million have circulated in the market. The team hasn't revealed what they plan to do with the remaining tokens. This raises concerns about dilution, but we believe PARSIQ will use the tokens as incentives to encourage adoption rather than dumping them into the market, punishing early adopters. PARSIQ is up against some stiff competition. Its competitors, such as Bitquery and the Graph, allow users to act on blockchain-based data as well, but they do so in a different way. They enable you to take action in response to past events. You can interact with events in real-time with PARSIQ. Simply put, the competition allows you to pull data before triggering an action, whereas PARSIQ pushes the data that initiates the action. It's far too early to say whether PARSIQ's method of monitoring addresses and contracts in real-time will win the market over its competitors' method of querying blockchains like databases. However, we expect both approaches to appeal to different userbases over the next 12 to 24 months. How Big Could PARSIQ Get? PARSIQ is a data-to-action platform that connects blockchain to everything. Anyone can quickly and easily create their own monitoring and automation systems. You can even incorporate PARSIQ triggers into your applications. In a nutshell, PARSIQ solves the problem of connecting isolated decentralized chains to centralized databases that the vast majority of the world uses on a daily basis. When you add up all of the data that anyone can use on a daily basis, you can see how valuable triggers can be. The combined market capitalization of blockchain oracles like LINK, BAND, and TRB is approaching $6 billion. However, they only handle half of a transaction that goes from the real world to the blockchain. The blockchain-to-real-world half is handled by PARSIQ's trigger technology. PRQ's market cap could quickly rise from $14 million to rival BAND's $149 million as the world realizes the importance of triggers over the next 12 months. That's a tenfold increase in a matter of minutes. However, PARSIQ is working on reverse triggers as well. As a result, PARSIQ will be able to provide the complete cycle of real-world data moving on-chain and then triggering off-chain events.
If reverse triggers are successfully launched, PARSIQ will be on par with Chainlink, a top ten cryptocurrency, and PRQ will soar to a $1 billion market cap, a more than 70-fold increase. ACTION TO TAKE Buy PARSIQ ( PRQ ) up to $0.25. Exchanges: Uniswap. (To buy, you may have to reverse the "from" and "to" fields using the arrow in the middle. It should say from ETH to PRQ .) Wallets: MetaMask.
