What is Understanding Chainlink (LINK)
Content
Chainlink isn’t a new cryptocurrency, yet it seems like it hasn’t been getting enough attention until recently. So let’s answer the question: what is Chainlink?
Check out a few quick facts about Chain LINK crypto currency in the table below.
| Founders | Sergey Nazarov and Steve Ellis, in partnership with Dr. Ari Juels |
| Founded in | 2017 |
| Maximum supply | 1,000,000,000 |
| Ticker | LINK |
| Network | Decentralized oracle network |
| All-time high | $52,70 |
| Project’s website | https://chain.link/ |
| Chainlink whitepaper | https://chain.link/whitepaper |
Read this article to learn about the most valuable information on Chainlink and the latest Chainlink crypto news .
What Is Chainlink Crypto?
Let’s check what is Chainlink crypto and how it works. Chainlink is a project of SmartContract. It aims to optimize smart contracts created to ensure high-quality interactions between the blockchain industry and the traditional market.
The native currency of the platform is Chainlink coin (LINK), and it’s built on the Ethereum blockchain. The team of developers includes 18 employees. It aims to solve the issue of blockchain’s technical compatibility with modern information transfer methods typically used by companies and organizations.
Technology
The platform is based on an open-source infrastructure. The benefits of this infrastructure are clear: the platform enables virtually any blockchain to be safely linked to off-chain data.
Chainlink creators designed a system of third-party supporters, i.e. oracles that transmit the needed data to the blockchain. Such oracles are compatible with Bitcoin, Ethereum and other blockchains. As we know, neither blockchain nor smart contracts can acquire data outside their network, for the exception of some networks that develop their own oracle systems. At some point, any progressive blockchain would need outside information to carry out necessary operations. Here, one can turn to oracle providers. They query, process, and validate the data. If necessary, the resource can send information to external sources. Chainlink technologies are successfully used in logistics, insurance, and cryptocurrency platforms.
Long story short, oracles are intermediaries between smart contracts, the blockchain, and the external network. Their aim is to ensure that transparent, fast, and precise transportation of vital information to the network. Chainlink is a unique decentralized intermediary service that reliably and securely connects smart contracts with external resources.
The principle of the ecosystem operation is built on two levels:
- an off-chain layer that is a subnet of unrelated oracles that work as defined algorithms and collect external information (APIs, databases, etc.);
- an on-chain layer that is a layer that operates within the network and selects the oracles that correspond to a particular contract.
As a result, nodes within the network obtain, verify, and transfer data from several resources to other blockchains to carry out smart contracts. The platform also uses its native token, the Chainlink coin, to pay for operations.
Tokens
So, what is Chain link crypto? As mentioned, Chainlink token is the native token of the platform. It’s not a coin but a token, given the platform is built on the Ethereum blockchain.
The Chainlink network’s native token LINK is used to compensate node operators. LINK is an ERC677 token, which is an extension of ERC20. The platform’s creators claim that the trade value obtained from LINK is utilized to pay node operators after distracting data from smart contracts.
Since the token is based on the ERC20 extension, holders can store Chain Link crypto tokens in e-wallets that use ERC20 technology. For more information about the project, its goal, roadmap, and purpose, check the Chainlink whitepaper.
You can find LINK coin on CoinGecko and Coinmarketcap.
Chainlink news
Now that you know what is Chainlink, let’s check out some Chainlink news. One of the major advantages of the project is that it aims to create a link between cryptocurrencies and the real world. The idea isn’t revolutionary, but to this day, there aren’t many projects that focus on linking the traditional market with cryptocurrency.
It’s also worth mentioning that Chainlink cryptocurrency was the twenty-second biggest cryptocurrency by market capitalization in February 2022.
As usual, you can always find more info about the Chainlink token in its White paper.
FAQ
Unlike most other coins, Chainlink cryptocurrency has multiple connections to other platforms' smart contracts. This platform's technology is considered one of the most critical to developing smart contracts, making LINK crypto so important. Moreover, its high-speed network supplies users with crucial data in real-time, making the platform useful for forecasting short-term crypto prices.
The initial purpose of the asset was bridging the smart contracts and the external data sources. Now, Chainlink crypto serves as a reliable support to all blockchain-based networks.
Among the top Chainlink competitors are Cyware, INTRASOFT International, Clovyr and Lit Protocol.
Chainlink is a platform that enables non-blockchain companies to connect with the projects that operate on blockchain.
