Chainlink's ascent continues, how does it work?

Chainlink's ascent continues, how does it work?

By Roberto D. | CryptoFarm | 18 Aug 2020


The rise of LINK, the Chainlink token, one of the most interesting expressions of decentralized finance, which is being talked about with increasing insistence as a new trend in the cryptocurrency ecosystem, continues in a rather impressive way.

At the time of writing, LINK is traveling around $ 12.5 per token, after spending three sessions between $ 12 and $ 14, and having produced a notable leap forward last week, with prices going up from around $ 9.60 at the current level.

But what is Chainlink? Why is there all this attention to this cryptocurrency project?

 

What is Chainlink?

Going in order, let's remember how Chainlink (LINK) is a decentralized oracle network, which aims to connect smart contracts with real-world data.

Chainlink was developed by Sergey Nazarov and Steve Ellis, and had an ICO in September 2017, raising $ 32 million, with a total supply of 1 billion LINK tokens.

LINK, the native cryptocurrency of the Chainlink decentralized network, can be used to pay node operators. Since the Chainlink network operates through a "reputation" system, node providers who have a large amount of LINKs can be rewarded with more important contracts, while failure to provide accurate information results in a token deduction.

The developers describe LINK as an ERC20 token, which therefore "runs" on the Ethereum blockchain, with the additional ERC223 functionality that allows to receive and process tokens from contracts within a single transaction.

After LINK's 2017 ICO, valued at $ 32 million, 32% of LINK tokens were awarded to node operators to boost the ecosystem, while 30% remained within Chainlink for development (35 % was sold in the public token sale).


What are oracles?

Chainlink is a platform that aims to bridge the gap between smart contracts based on blockchain technology (such as those of Ethereum) and real-world applications.

In particular, as blockchains cannot access data outside their network, oracles (a decentralized finance tool) become necessary to function as data feeds in smart contracts.

In the case of Chainlink, the oracles are connected to the Ethereum network, and provide external data (e.g. temperature, weather, etc.) that activate the execution of smart contracts when predefined conditions are met.

Participants on the Chainlink network are incentivized (through rewards) to provide smart contracts with access to external data streams such as API information. If users want to access off-chain data, they can submit a contract request to the Chainlink network.


Where to buy Chainlink?

Thanks also to its growing popularity, it is now possible to trade Chainlink on all major exchanges in the world, especially with its fiat counterpart, the US dollar.

You can therefore find Chainlink on Binance, Coinbase, Okex and other operators.

 

What do you think about it? Do you own ChainLink? Let me know in the comments.
Thanks if you've read this far, and see you next time!

 

 


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Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015 Telegram channel: https://t.me/dumbwaystoearn


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