Chainlink: The long-awaited oracle of the Crypto World
Memories of 2018 are still sparking fears… Bitcoin cratered 80%, and many crypto projects ‘died’, or shrivelled over the lengthy crypto winter ❄️. Yet, there is one project that managed to develop and even defy the gloomy market - Chainlink. ⛓️
How did Chainlink manage to develop during a time when the crypto market was crashing and stagnating?🤔
In this article, we will look at how Chainlink works, how the native LINK token works, and why Chainlink has become the oracle of the crypto realm. ⛩️
What is Chainlink?
Cryptocurrency and blockchain technologies have emerged from the shadows of uncertainty and into the public eye. The emergence of new forms of crypto assets, as well as ongoing innovations in the crypto fields such as DeFi and NFTs, have enhanced crypto's reputation. Chainlink on the other hand has become a household brand as one of the fundamental components for blockchain applications. But how? Let's take a look! 👀
❗ First, let's remember what blockchain smart contracts are:
- A smart contract like any other contract defines the condition of a 'deal' however, unlike a typical contract, the rules of a smart contract are carried out as a code on a network like Ethereum. Smart contracts let developers create apps that reap the benefits of blockchain security, dependability and usability while providing complex peer-to-peer functionality.
Smart contracts enable users to conduct peer-to-peer (or P2P) transactions without the need for middlemen like banks or governments. 🤝
Going back to Chainlink, its goal is to make smart contracts more powerful by allowing them to use variable data from different sources. How? The blockchain's inability to retrieve trustworthy information from the real world was meant to be solved by Chainlink’s oracle network which was expected to tackle one of the main obstacles to the practical implementation of smart contracts.
Chainlink is an oracle that connects to numerous blockchains at the same time, supplying them with current data feeds. Back in medieval times, an oracle was a person who could use ‘a crystal ball’ to see into the future 🔮. Essentially giving reliable information to someone who wanted it. Whether you believe in that stuff or not, when it comes to blockchains they want the same thing. A blockchain cannot see outside of its own code. It cannot go searching around the Internet and it cannot even ask for more information. It's simply coded to store data and transactions. However, we can create smart contracts in a way that they rely on third-party information like the price of a stock 📈📉, the temperature outside 🌡️ , or even who won the presidential elections 🗳️. The oracle acts as a middleman between the blockchain and the real world. 🧙
Simply put, Chainlink is a decentralized oracle network that feeds a stream of data to smart contracts running on several blockchains.
The LINK token
The Chainlink blockchain has a native token called LINK. This token is used to fund the project's growth. During LINK's ICO in September of 2017, the developers stated that there would be a maximum supply of 1 billion tokens.
LINK's trading volume on most exchanges around the world is more than $700 million. It is for these reasons that LINK is one of the most liquid altcoins on the market, having earned its place among the top 25 crypto projects.
How does Chainlink work?
The Chainlink network consists of two parts: the off-chain part and the blockchain itself. The off-chain part is a network of nodes connected to the Ethereum network, which collects data from external sources and sends the data to information consumers. The blockchain filters oracles and selects those that fit the smart contracts of users, i.e., data recipients. Data is sent to users from the selected oracles. 🧙
For example, if a user's smart contract needs to receive data from the New York Stock Exchange, it does not need to receive data from, say, the Uniswap exchange, but only uses data supplied by oracles connected to the NYSE.
Chainlink brings some important benefits to the crypto world. Oracles are important for network expansion. They underlie some of the most interesting developments in the sector:
🌐 Absolute decentralization. The system was based on the concept of collecting every fragment of information, providing mass protection over it and 100% decentralization. Chainlink allows for trust-free transactions and communications, without the need for a central authority.
🔒 Adjustable security level. Smart Contact developers who want to try Chainlink services can choose the number of nodes they want to use according to their individual needs. The more nodes used, the higher the level of security.
💥 Chainlink has the potential for parties and industries that want to connect real data with blockchain. Also, it incentivizes users to reliably transmit valid data to Chainlink.
With a smart contract, users will get the best result provided by the Chainlink network oracle. This sifts out unreliable or inaccurate data and will help make the Internet ‘cleaner’ 🧹 in terms of information. Scattered data is a big problem for many companies: it becomes difficult to collect data, and the result is not guaranteed. The Chainlink platform solves this global problem. 💪
Chainlink has already helped major companies such as Google, Gartner, AAVE and many others. Chainlink data is available on the Ethereum core network and in a number of Ethereum chains. ⛓️
Chainlink cooperates with Swift, Gartner and IC3 and was the first to occupy this niche, creating a network of reliable oracles, which will provide it with a high advantage in the future. 🔮
LINK in the Market Today
Chainlink (LINK) has been performing well, having reached a price of over $7.50 just a few hours ago. LINK is currently valued at $7.35, and is over 5% up in the last 24 hours and over 20% in the last 7 days.
LINK’s rally has been attributed to the whole altcoin market pumping, as Bitcoin has broken out (for the time being) of its range it has held for about a month now.
For now, it is looking like LINK is maintaining its upwards momentum as bullish sentiment seems healthy after a constant increase in price over the past few days. The daily chart as well as the 4-hour chart analysis both show that the price has significantly improved today. Let’s see how it holds this week or if we see a midweek reversal.
Is LINK a good investment?
Chainlink is a quality investment worth considering if you are building a cryptocurrency portfolio. It offers excellent utility, is widely distributed, and has a significant advantage over other decentralized oracle networks.
Smart contracts are a vital part of every blockchain network that needs (and will need) real data. Chainlink provides an efficient and accurate oracle solution. The fact that so many projects are already using Chainlink demonstrates its usefulness.
LINK at NAGAX
NAGAX offers a reliable platform to buy Chainlink. The process is fast, easy and secure. Here are 3️⃣ easy steps to buy LINK on NAGAX:
- Sign up for a NAGAX account.
- Buy LINK instantly with a Debit/Credit Card or USDT through the intuitive NAGAX Wallet or Exchange.
- That’s it - you’re all set! 🤩
When it comes to buying crypto, you have a lot of options. You can directly purchase $LINK with a credit/debit card or other cryptocurrencies (USDT, BTC) in the NAGAX Wallet. To learn more about buying crypto at NAGAX, please click here.
Chainlink has been getting more and more attention lately. Check out what's causing the hype by discovering LINK on NAGAX today! 🚀
- Bitcoin Cash is notable for being the first hard fork of Bitcoin, and the project itself has become a crypto to be reckoned with.
- BCH maintains a high rating on the market, and it has created its own identity and mission different from Bitcoin.
- Bitcoin Cash was created to accommodate a larger block size than Bitcoin and allows for more transactions in a single block.
- Despite differences in philosophy, Bitcoin Cash and Bitcoin have many technical similarities. They both use an identical consensus process and have set the supply volume at 21 million.
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