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What is ChainLink and why should I invest ?

By Kidsarow | Kidsarow | 26 Feb 2020


What is ChainLink and why should I invest ?

Since the meteoric rise of cryptos in early February, many cryptos have started to be highly talked about and in particular ChainLink with his token $Link. Place 14th currently on CoinMarketCap
and a note of 4.1 on CoinCheckUp, ChainLink continues to evolve and become more and more interested in investors following recent new integrations such as BigQuery or Polkabot. But what is ChainLink? Why so much enthusiasm and a rise in price? Why invest in $Link ?

1. What is ChainLink?

ChainLink is a decentralized oracle system created by Sergey Nazarov in 2014 with the aim of connecting each blockchain application to real-life applications such as banks, payment systems ... which are used to being outside the blockchain thus creating potential security vulnerabilities.

Quick reminder : An oracle is a computer program that will control the internal or external data that is transmitted to smart contracts executed on blockchains.

2. How does it work?

Take any blockchain like Bitcoin or Etheureum and we want to pay using Paypal. Here we have two completely different pieces of information, the primary smart contract is inside the blockchain while the Paypal financial information is outside the blockchain. To address this problem, we put a ChainLink node between the blockchain smart contract and information outside the blockchain connected by a bridge system in order to allow and ensure communication and contract security.

2.1 ChainLink Nodes?

Nodes are a central point in the functioning of ChainLink but what are they used for and how they works?

  • Being able to retrieve and transmit external information.
  • Rewarded in $Link.
  • Connected to bridges between entries and exit.
  • Reputation system to evaluate a node to be sure of its safety and its proper functioning.

3. Why ChainLink?

ChainLink was invented to meet important needs within the blockchain world. First of all, to be able to retrieve information from the blockchain that we will say "in-chain" while being outside it, or the reverse of external information called "off-chain" to the blockchain.

Second, it responds to the lack of an oracle to be able to transmit information which leads to the fact that if there is no or very little number of oracles, there will therefore be very little number of intelligents contracts therefore a limitation. 

Third, develop the feeling of sharing but also of connections in the virtual world of finance and the real world like Paypal or banks.

4. Advantages and disadvantages.

Chain technology has its share of advantages and disadvantages.

4.1 Advantages.

  • A decentralized oracle.
  • Allows to secure connection between in-chain and off-chain information.
  • Allows to considerably increase the evolution and adaptation of the blockchain world.
  • Many integrations and partnerships such as Swift.
  • Multiple types of contract in order to have the one that best suits us.
  • A strong demand.
  • A significant presence on social networks and constant communication.

Their is a lot of more advantages of using ChainLink but for me these advantages seems to be the more important.

4.2 Disadvantages.

There are not many disadvantages to using ChainLink technology, however there are two very important ones. First of all, the very little development marketing aspect which can lead to expansion, but the most important point, the partnerships with Swift or Google Cloud which strongly contribute to the creating value can be an dependence to this.

5. Should we then invest?

In my opinion ChainLink is a good investment or a very good investment. ChainLink has proven itself in the community but also in companies. ChainLink continues to evolve and grow over the years and develops more and more with great potential. Each week it is difficult not to know of a new integration or partnership showing that ChainLink seems to be very important and plays a very important role in the expansion of the blockchain. Many large companies are really starting to get interested in it, already having partnerships with Swift and Google Cloud.

The token $Link, it continues to climb in the rankings and its price too. However or hour, the market being under the fear of the coronavirus, the price decreased as the whole of the cryptocurrencies being currently at $3.47 according to CoinMarketCap at the time of writing. However, for information for those who would like to invest, we expect a recharging zone between $3 and $3.30, a good opportunity to invest.

Now that you know more about Chainlink, what do you think of it? Do you plan to invest?

Sources and useful links :

ChainLink Website : https://chain.link/
Chain Link White Paper : https://link.smartcontract.com/whitepaper
Chain Link Twitter : https://twitter.com/chainlink
Chain Link Reddit : https://www.reddit.com/r/Chainlink/

CoinMarketCap : https://coinmarketcap.com/currencies/chainlink/
CoinCheckUp : https://coincheckup.com/coins/chainlink/ 

Buy $Link on Binance : https://www.binance.com/en/buy-ChainLink  (My referral link if you want to support me ((10% commission back for me and for you.))
Buy $Link on Coinbase : https://www.coinbase.com/price/chainlink (My referral link if you want to support me (($10 offered for $90 purchased))

Follow me on Uptrennd : https://www.uptrennd.com/user/NTg0ODM

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Kidsarow
Kidsarow

A simple human believer in the future of crypto and decentralization. Sharing my knowledge freely at the service of everyone.


Kidsarow
Kidsarow

Here you will find content about cryptocurrency, Blockchain technologies, trading but also psychology and many others. In the search for knowledge, it will be shared freely and free. See you in my next post.

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