Chainlink (LINK) is an open-source sidechain project that allows you to tokenize agreements securely so they can be traded on the blockchain. In other words, it is a decentralized oracle network poised to play a critical role in the real-world deployment of blockchain technologies. The principal goal of this network is to provide feedback on a range of external data sources.
Although blockchain is excellent at what it does — providing a decentralized, secure database for digital transactions — it is not so good at receiving input for events that occur outside of the blockchain. Markets are influenced by a variety of “off-chain” forces, including fiat currencies, credit cards, and even the weather and sports results. Chainlink, as a decentralized oracle, may offer information to smart contracts.
These smart contracts allow the system to react to a variety of inputs (if X, do Y). Bitcoin and its blockchain, as the first cryptocurrency, can only process a small portion of this data. However, newer blockchains, such as Ethereum, offer a broader range of applications. This includes the ability to program smart contracts.
Who are the Founders of Chainlink (LINK)?
Chainlink was founded in 2014 but was not operational until 2017. Sergey Nazarov, a 32-year-old entrepreneur with a significant presence in the crypto sector, is the main person behind the cryptocurrency. The Chainlink network was originally intended to be a centralized oracle system that could check incoming data. However, it has subsequently evolved into what it is now: a decentralized oracle network that combines smart contracts with external data sources and APIs to offer secure transactions.
The Chainlink network is a fairly open system. Anyone can join it, give data to the network, or help run its affiliated nodes and oracles to perform Chainlink “jobs.” These operators are compensated in LINK tokens, the Chainlink network’s internal currency. Operators can also use LINK tokens to receive additional money when servicing smart contracts.
What is Chainlink (LINK) Used for?
Chainlink has a wide range of applications. Securities, for example, require market data, whereas insurance and supply chain industries want verification of events and timestamps. The following are some instances of how Chainlink might be useful:
Weather data can be retrieved via a decentralized oracle system to aid in the calculation of insurance premiums.
Location data to use in supply chain tracking.
Retail or bank payment information to trigger a smart contract.
What Makes Chainlink (LINK) Unique?
Chainlink was one of the first networks that allow off-chain data to be used in smart contracts. Chainlink is a key player in the data processing area, with a large number of reliable partners. Chainlink has gained the attention of several reputable data providers, including Brave New Coin, Alpha Vantage, and Huobi, due to its integration of off-chain data. Data suppliers can directly sell access to data to Chainlink, allowing them to monetize their data.
Chainlink, as a decentralized network, allows people to become node operators and earn money by running the key data infrastructure required for the operation of blockchains. Chainlink so unites a large number of node operators to power a wide range of decentralized Price Feed oracle networks that are presently in operation, securing billions of dollars in value for top DeFi applications such as Synthetix, Aave, yEarn, and others.
How many Chainlink (LINK) are in Circulation?
Chainlink declared a total and maximum quantity of 1,000,000,000 LINK tokens during the LINK initial coin offering (ICO). The current quantity of LINK tokens is around 419,009,556 tokens or around 42% of the total supply.
According to the ICO whitepaper, 35% of the total token supply will be allocated to node operators and ecosystem incentivization. During the public sale activities, another 35% of LINK tokens were given. Finally, the company received the remaining 30% of the entire token supply for the further development of the Chainlink ecosystem and network.
How Is the Chainlink (LINK) Network Secured?
The proof-of-stake (PoS) consensus mechanism secures Chainlink as an Ethereum-based ERC-20 token. In contrast to Bitcoin’s proof-of-work (PoW) consensus, PoS selects node validators based on the number of staked tokens.
PoS protocols were developed to combat the high-power consumption of PoW devices. Because they use less electricity and are easily scalable, PoS models are becoming more popular. While proof-of-work has shown to be a reliable consensus mechanism, Ethereum and all other ERC-20 tokens have been fast increasing and becoming the industry standard.
Where Can You Buy Chainlink (LINK)?
Purchasing LINK tokens is a simple process. They’re a well-known cryptocurrency that can be found on most major cryptocurrency exchanges, including Coinbase, Gemini, Kraken, and Binance. You can either trade your existing cryptocurrency for LINK tokens or pay with a fiat currency like USD through a brokerage. Many exchanges allow you to deposit funds using a credit or debit card.
While you can keep your LINK directly on a cryptocurrency exchange, this isn’t always the safest option. It is strongly advised that you obtain a digital cryptocurrency wallet to hold all of your cryptocurrencies, including LINK.
Crypto wallets, on the other hand, come with their own set of risks. Because they’re secured by one-of-a-kind passwords or codes, you risk losing access to the wallet’s contents if you forget how to access it. Make a copy of your access codes somewhere safe in case this happens.
LINK tokens can be purchased in fractional shares, making them more accessible to investors. The price per token, however, is relatively cheap at roughly $30, making it a reasonably priced cryptocurrency.
Which Cryptocurrency Wallet Supports Chainlink (LINK)?
The PTPWallet platform supports many cryptocurrencies simultaneously such as Chainlink (Link). Because of its vast use case, it has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their Chainlink wallet because offers a simple and interactive interface making it easy for people to navigate its system.