Chainlink (LINK) is a decentralized oracle network that enables blockchain platforms to securely interact with external data. It allows blockchain-based applications (dApps) to access real-world data, such as stock prices and weather data, bridging data off-chain (data not on a blockchain) with on-chain data (data on a blockchain). The Chainlink token, LINK, is a cryptocurrency used to compensate node operators who provide data to the network and help maintain its security and reliability.
How Does LINK Work?
LINK is built on blockchain technology, which is a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain LINK occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
Use cases of Chainlink (LINK)
1. Smart Contract Integration: Chainlink allows for secure and reliable integration of off-chain data into smart contracts, making it possible to create decentralized applications with real-world data input.
2. Price Feeds: Chainlink provides accurate and tamper-proof price feeds for a wide range of assets, enabling decentralized finance applications to have access to reliable market data.
3. Oracles: Chainlink acts as an oracle, providing reliable and secure data to smart contracts, enabling them to trigger actions based on real-world events.
4. Decentralized Identity: Chainlink enables the creation of decentralized identity solutions, providing users with secure and private control over their personal data.
5. Supply Chain Management: Chainlink can be used for supply chain management, enabling tracking and verification of products from origin to final destination.
History of Chainlink (LINK)
LINK was founded by Sergey Nazarov and Steve Ellis in 2017. It was released at an ICO of $0.11. That same year, the two co-authored a white paper introducing the Chainlink protocol and network with Cornell University professor Ari Juels.
Pros and Cons of Chainlink (LINK)
Increased Accuracy: Chainlink oracles provide tamper-proof and reliable data inputs, which helps in improving the accuracy of smart contract execution.
Decentralization: The decentralized nature of the oracle network helps to eliminate intermediaries, increase security, and maintain transparency.
Interoperability: Chainlink oracles can interface with various off-chain data sources, such as APIs, payment systems, and databases, allowing smart contracts to interact with external systems.
Complexity: The technology behind Chainlink oracles can be complex and challenging for non-technical users to understand and use.
Scalability: The scalability of the oracle network remains a challenge as more usage and data requests are added to the network.
Adoption: Despite being a well-established project, Chainlink oracles still face competition from other oracle solutions, which can hinder its adoption and growth.
Where To Buy Chainlink (LINK)
You can trade Chainlink on major crypto exchange platforms. You are able to buy, sell or use the token for trading on both centralized and decentralized exchanges.
3. Huobi Global
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 507,999,970 LINK
Max supply: 1,000,000,000 LINK
LINK Developer Engagement
Chainlink has an active developer on GitHub. The repository is kept up-to-date with many new projects and changes to improve the coin’s code.
LINK Network Speed
Transaction Time: 14 minutes
More than 80% of the circulating LINK supply is held by 25 addresses which is extremely concerning. However, the disbursement could later become more fairly distributed as more of the Chainlink supply enters into circultation. Currently, only 50% of the total Chainlink supply is in circulation.