The Chainlink Network is a decentralized oracle that allows anyone to provide data to smart contracts and DAPPS securely.
Smart contracts are the future of business, but they’re not perfect. They can’t access external data sources like Google Maps without help from a centralized service provider, which means they have to trust someone else with their security and reliability.
The LINK network solves this problem by making it possible for anyone on the planet to use a decentralized oracle. It’s secure, reliable, and accessible from anywhere in the world – no matter what language you speak!
This makes it easy for developers of all skill levels to build next-generation blockchain apps that require real-world information about weather, prices, exchange rates, sports scores, flights, or package deliveries.
How does Chainlink work?
By using Chainlink’s decentralized oracle network, you can use the LINK token to pay for any crypto-economic or traditional data feed. By utilizing smart contracts and what they offer in terms of trustless exchange, risk-free transactions, and more, anyone can now access a whole new range of services and financial applications.
Chainlink uses open source and publicly accessible APIs to link smart contracts on various networks to key off-chain resources like data feeds, payment systems, and traditional bank account payments.
Imagine you’re using a smart contract for an insurance application on the blockchain. The contract needs to access information about the weather to calculate how much your claim should be worth, but it doesn’t have any way of doing so because it’s not connected to any external data feed or API.
Things to consider before investing in LINK coins
If you’re thinking about investing in LINK, there are several things to consider first. For one thing, this is an ERC20 token, and as such, it’s an investment that will be influenced by the price fluctuations of Ethereum (ETH).
Secondly, Chainlink is a platform and not a consumer-facing product, so developers will mostly use it.
Finally, you should note that the LINK token does not represent a share of ownership in Chainlink, nor does it pay dividends. It’s simply a utility token for paying for the Chainlink network.
How to Buy LINK Coins?
There are several ways to buy LINK coins. You can do so on most exchanges that have them available, such as Binance or Kucoin.
You can also purchase LINK by using one of the many decentralized exchanges already being traded, for example, EtherDelta and IDEX.
The main challenge with decentralized exchanges is that they are designed to keep your money safe – not allow you to quickly transfer it into a standardized currency like USD or EUR. This means that to purchase LINK, you will usually have to provide one of these currencies instead.
History of Chainlink (LINK)
Launched in 2017, Chainlink is a Consensys project that had a very successful ICO in Q3 of 2017, where it raised over 32 million dollars. LINK is a utility token that enables usage of the Chainlink Oracle network, whose purpose is to securely connect smart contracts on various networks to key off-chain resources.
The main advantage of this oracle system, as opposed to other centralized oracles, is that it doesn’t enable any single point for failure. This makes it much less vulnerable to being hacked or manipulated by bad actors. Its decentralized nature also ensures transparency because all data requests are open source.
The Chainlink platform is backed by a large number of notable investors, including Google. The core members are two highly experienced blockchain developers Sergey Nazarov and Steve Ellis. Their advisory board includes smart contract security specialists Dino Mark, Vlad Zamfir, and Ari Juels.
In conclusion, the Chainlink Coin is a very interesting cryptocurrency that has been in existence for some time now, and it has already shown a lot of potentials. It has a strong team behind it and might be a good choice for a long-term investment in the cryptocurrency space.
Chainlink (LINK) FAQ
What is the difference between ChainLink and Oraclize?
While both projects offer oracles, they each approach the problem in very different ways. ChainLink decentralizes its oracle network by allowing anyone to run a “node” on their network. These nodes are incentivized with LINK tokens to provide the data needed by the smart contract to carry out the terms of the agreement.
What is the link token used for?
The LINK token is used by smart contracts to pay ChainLink nodes to retrieve data from various data sources. This payment happens automatically and independently of any other agreement and can even happen outside of a smart contract.
Does Chainlink use PoW?
No. Chainlink uses the Ethereum blockchain, so it uses PoS to reach consensus.
How does ChainLink predict gas prices?
This is done through an open Oracle protocol – essentially a smart contract that anyone can use for this purpose. Anyone who wants to participate in predicting the price of gas for a transaction pays LINK tokens and then provides oracle responses to the ChainLink network, which is then used by the network to predict the gas price.
What is the capacity of ChainLink’s network?
According to their whitepaper, it can scale to “tens of thousands of requests per second, with demonstrable performance on par with centralized oracle services.”
Can I mine LINK?
No, LINK cannot be mined in the traditional sense.
Is Chainlink scalable?
Yes, the ChainLink Network is designed to be highly scalable through its oracle sharing network, pooling of oracles, and use of popular data sources. Through this process, LINK tokens are used as an incentive for providing external data to smart contracts in exchange for those LINK tokens, which facilitates the entire process.