What is Chainlink?
The idea behind Chainlink is to connect smart Contracts over different Blockchains and giving them access to off-chain-resources like bank payments or data-feeds.
Putting smart-contracts in a position, to communicate with extern systems is the main goal for the developers.
How do they want to achieve their goal?
In order to connect the “real world” or the off-chain-world with the blockchain, Chainlink uses Oracles.
Oracles are centralized external devices, that are legitimized to find and validate information and send it to the blockchain.
The problem is… How can you trust an Oracle?
In order to guarantee the factual correctness of the data being sent to the blockchain, Chainlink wants to build an Oracle-Network, that allows people to send data or APIs directly to the smart contracts in exchange for Chainlink-tokens.
These people are called Node Operators.
Chainlink consists of the LINK-Tokens and the LINK-Network.
The Network
The Chainlink-Network consists of two components
The On-Chain-Component
The On-Chain-Component filters the Oracle through Service Level Agreements, which are varying from smart contract to smart contract
The Off-Chain-Component
The Off-Chain-Component is defined by Oracle-Nodes, which are linked to the Ethereum-network and are able to provide the right data at the real time.
The Token
The Chainlink-Token is an ERC20-Token, which was limited to a maximum volume of 1 billion USD.
35% go to the operators and 30% are being used by the company in order to push forward developments. The other 35% are getting sold public.
Should I invest in Chainlink?
IF Chainlink is successful in its mission on bringing the “real world” on the blockchain, the Chainlink tokens could actually be one of the biggest gainers in the crypto-space.
Because of Chainlink being one of very few companies working on this intermediary solution, they could have a very big market-dominance.
All in all Chainlink is a thrilling Investment for risk-loving investors.
Where can I buy Chainlink?
You can buy Chainlink on Coinbase.
If you want to support me, you can use my referral-link: https://www.coinbase.com/join/singer_eo
This is not financial advice!
Always do your own research!
