“The industry standard oracle network powering the future of smart contracts”
– Chainlink
Note: This is part of Nebeus’ new Coin Analysis series, where you can discover the latest crypto coin news.
Chainlink (LINK) is a cryptocurrency designed to encourage a global network of computers to give reliable data to smart contracts built on blockchains.
As a decentralised blockchain oracle network, it connects any blockchain to off-chain ecosystems and non-blockchain businesses. Despite being built on Ethereum, Chainlink offers interoperable blockchain technology so users can access Ethereum, Solana, and Terra blockchain networks.
It enables secure data exchange between smart contracts and real-world data, events, payments, etc. Using the power of zero-knowledge proofs, Chainlink can verify if users follow a smart contract’s parameters without disclosing their personal information.
How does Chainlink ($LINK) work?
Smart contracts fuel the Chainlink blockchain. Building on their first white paper years ago, Chainlink produced a second white paper in 2021 that outlined the company’s vision for hybrid smart contracts. But what exactly are smart contracts? And what is a blockchain oracle?
What are Smart Contracts?
Put simply, smart contracts are agreements that are programmed to execute when particular parameters are met. So far, smart contracts have been utilised to create new crypto-financial products and crypto-assets.
Chainlink can operate as a decentralised oracle to execute these smart contracts as the network nodes fetch data from numerous sources and evaluate it.
By doing so, Chainlink attempts to solve one of the major issues of blockchain technology: that it isn’t great at taking inputs from influences outside of blockchains, such as fiat currencies, market prices, credit cards, insurance agreements, the weather, and even sports scores.
Chainlink has an in-depth guide here that will help provide you with more information about LINK and smart contracts.
What is a Blockchain Oracle?
Chainlink addresses the issue of accessing off-chain data by encouraging intermediary data providers, known as oracles, to act as a middleman between smart contracts and non-blockchain data sources.
By using these hybrid smart contracts, Chainlink decentralises the process of moving data on and off blockchains, as if an oracle relies on a single centralised source, it is vulnerable to hacking or manipulation by the source’s owner to skew smart contracts.
Each oracle in the Chainlink network has a reputation score, encouraging them to supply correct data. $LINK money is rewarded to nodes that obey the software's regulations and offer important data.
Important data can be delivered through either other software such as databases or through hardware such as barcode scanners which converts physical occurrences into digital values understood by smart contracts.
On the other hand, outbound oracles communicate with the outside world. For example, a smart contract receiving a payment could send data to a mechanism which proceeds to unlock a smart lock.
Chainlink also has a detailed article on Blockchain Oracles that is worth checking out if you’re interested in the technology behind LINK.
Who Are the Founders of $LINK?
“The ability to easily integrate a project with Chainlink’s decentralized oracle network has enabled numerous teams to avoid the hassle of building their own oracle, allowing them to instead focus on innovating and building use cases.”
– Chainlink
Chainlink was established by co-founders Steve Ellis and Sergey Nazarov, who issued the first white paper with their advisor Ari Juels back 2017.
Although SmartContract, a for-profit startup, created the Chainlink network in 2017, it was officially launched in 2019.
What is the $LINK Token?
Chainlink’s native cryptocurrency is the ERC677 token, LINK. LINK is valuable because it ensures the execution of smart contracts on the Chainlink network by acting as collateral for these agreements and incentivising oracle network operators.
Chainlink network operators receive LINK tokens for retrieving data from off-chain feeds, formatting data, and conducting off-chain computations. Node operators must stake their LINK tokens but can freely set fees for their work depending on demand.
The oracles pay smart contract creators a deposit in LINK. This is returned if their services are declined or completed. The smart contract creators keep the fee if an oracle does not perform.
As LINK’s ERC677 token is an offshoot of ERC-20, it works with other Ethereum currencies and smart contracts.
Additionally, a major factor influencing an oracle's reputation is the number of LINK it has.
How to buy Chainlink? $LINK
LINK can be purchased with fiat currencies on multiple crypto exchanges. Alternatively, it can be held, sold, and transferred using Nebeus at one of the best rates available.
After providing basic information on the exchange, you can buy LINK via bank transfer or credit/debit card.
Remember to have a secure token storing method before purchasing LINK.
What makes $LINK different?
The innovative differences that make LINK stand out make it easy to see why, in February 2022, Chainlink had over $60 billion in smart contract deposits and was being used by 1,100 projects.
Overall, Chainlink could be vital to cryptocurrency's long-term health and success in general.
It Can Connect Blockchain Technology to Real-World Applications
Blockchain has flaws. Closed systems are better for security and integrity, but they also limit the data they may accept.
Thus, a bridge is required to let these systems know what is happening outside. But for the system to work, the input cannot be centralised. Why? Were it to do so, it would go against the fundamental nature of blockchain.
This is where Chainlink comes in:
- Chainlink can connect blockchain platforms to facilitate the exchange of messages, coins, and specified activities. It accomplishes so in a decentralised, secure, and hard to hack manner.
- Because blockchains do not yet hold large amounts of data, Chainlink can connect blockchain networks to off-chain data.
Looking to the future, Chainlink may become the essential tool for integrating blockchain technology with real-world applications if it solves critical issues for smart contract users. So, you may wish to add LINK to your portfolio if you expect more blockchain-based smart contracts users in the future.
Among some of the many applications, Chainlink can help:
- Automate essential processes and event-driven tasks for businesses
- Distribute non-fungible tokens in a fair way
- Introduce gamification to personal saving
- Rebalance cryptocurrency token supplies
Easy to Get Involved in Blockchain Product Development
Chainlink makes it easy to begin using its blockchain technology.
Any blockchain-based product that needs to access and vet external data sources can use the Chainlink oracle network to do so. Plus, as Chainlink is an open-source blockchain project, anyone can access, analyse, and contribute code.
It Wants to Change the World With Blockchain Technology
Blockchain-based smart contracts are a powerful tool for promoting environmental sustainability, financial inclusion, and social good. Chainlink’s infrastructure enables hybrid smart contracts, allowing users to leverage cryptographic truth and usher in a new era of economic fairness and transparency.
Sustainability
Blockchain-based smart contracts let global communities align incentives and create new ways to promote sustainable practices. Smart contracts enable automated systems that reward individuals, corporations, and governments for environmental protection and restoration.
Education
Chainlink supports efforts that educate individuals and organisations on how blockchain and smart contracts may improve global economic possibilities. Examples include developer hackathons, bootcamps, research funds, and social impact awards.
Inclusive Finances and Reliable Insurance
Permissionless, open-source, blockchain-enabled smart contracts can help tackle important global concerns. Anyone with a phone and internet can join the global economy and access once unreachable products, resources, and services. Additionally, they help technical innovation, better monetise local resources, and safeguard local communities from environmental risks.
Chainlink supports blockchain-based applications offering weather, crop, and disaster insurance with real-world data access to better cover global markets. These applications help to improve the overall quality of life across the globe. Check out their work with Arbol, a weather-immunity marketplace for businesses and farmers.
How many Chainklink ($LINK) coins are there?
Max Supply: 1,000,000,000
Circulating Supply (05/05/2022): 467,009,549
Currently, approximately 46.7% of the total supply is already in circulation.
The Chainlink team initially sold 35% of its LINK cryptocurrency's 1 billion unit supply to raise $32 million.
The remaining tokens were distributed as follows: 30% to SmartContract for blockchain development and 35% to node operators.
Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.
What is the Current Price and current Market Cap (27/05/2022)?
Current Price: $11.91
Current Market Cap: $5,562,757,277
Current Market Cap Position: #27
All-Time Low: $0.148183 on November 29th, 2017
All-Time High: $52.79 on May 10th, 2021
Note: We gather our information from CoinGecko. The numbers written are correct at the time of writing.
CONCLUSION
Ready to get involved with Chainlink already? Join its thriving community of users, developers, and researchers on one of its channels:
- Chainlink - Reddit
- Chainlink - Twitter
- Telegram: Contact @chainlinkofficial
- Chainlink Official - Discord
- Chainlink
You can sign up for a Nebeus account to buy and hold your Chainlink investment.
La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.
