Blockchain is the latest technology, interest in which arose with the advent of the first cryptocurrency in 2009. Although the technology itself appeared long before this moment. We have already written about the history of the formation of the blockchain in our articles on the platform.
Now we can observe how the formation of a new generation is taking place - Web 3.0 Internet, which will be very different from what we have been used to seeing for the last 20 years. One of the key distinguishing features of Web 3.0 is the widespread use of blockchain technologies. Therefore, now developers are trying and creating new blockchain projects.
In this article , we would like to focus your attention on such a project as Chainlink!
About Chainlink
Chainlink is a decentralized network of oracles that focus on providing real-time data to smart contracts on the blockchain. It is in many ways similar to Ethereum, as it also offers smart contracts for financial transactions. Chainlink promotes its LINK token, it is widely used to pay for services on the network. The decentralized Chainlink network appeared in June 2017. The world's leading developers specializing in the optimization of smart contracts worked on its creation - Sergey Nazarov, Steve Ellis, Ari Jewels, etc. Before that, smart contracts were used exclusively within the framework of the cryptocurrency market. This is one of the main advantages of this blockchain platform. Smart contracts are pre-defined agreements on the blockchain that evaluate information and are automatically executed if certain conditions are met. Smart contracts inside the blockchain are the main part of the architecture that Chainlink consists of. Oracles in the platform act as an intermediary between smart contracts and the blockchain, providing the ability to connect to APIs and payment systems. The chainlink has two main parts:
- Offchain - functions are connected to the Ethereum network, since currently Chainlink can only work with Ethereum smart contracts. In addition, the off-chain technology collects data and can accept payments. Off-chain nodes can also interact with external adapters, which Ethereum smart contracts cannot do by themselves;
- Blockchain.
The ticker of the blockchain cryptocurrency Chainlink – LINK.
One of the main use cases of LINK is decentralized financing (DeFi).
It allows people to borrow and borrow cryptocurrency.
LINK tokens can be used to pay node operators for working with data streams.
Some also use LINK tokens to bet on off-chain data requests.
LINK can also be used to pay for smart contracts.
The Link cryptocurrency has successfully integrated into smart contract technology, and has become part of the global digital future. The optionality of using this cryptocurrency has attracted the attention of leading financial institutions that have expressed a desire to invest in it.
Given the technological capabilities of the project, LINK tokens are considered a profitable investment tool. Leading conglomerates and startups invest in them.
At the same time, it is important to take into account all the nuances and make decisions related to cryptocurrency yourself.Users often wonder how to mine Chainlink. The answer is simple – this is impossible, since the asset technology is based on the algorithms Delegated Proof of Service (DPoS) and Proof of Authority (PoA).
Chainlink and LINK: features
Chainlink has many features that distinguish it from other blockchain platforms. One of the reasons for the popularity of the chainlink is that it can easily link data and API to any smart contract.
It can extract data from any API and integrate it with existing and future blockchains. The oracle network is better here than in many other blockchains, because, as a rule, the oracles here are newer and more reliable. The blockchain is backed by smart contracts worth tens of billions of US dollars. That's why it has quickly become one of the most popular and efficient blockchains to date.
Users can also use decentralized network nodes to automate contracts. This avoids errors and risks because you don't have to worry about user and manual input errors.
Summing up, we want to mention once again that Chainlink is a powerful cryptocurrency project created to improve the quality of data transmitted to services and reduce risks when working with Blockchain applications.
The Chainlink cryptocurrency with the LINK token is capable of growing tenfold over the next 5 years. This is stated by experts who are well versed in decentralized finance. Of course, the cryptocurrency market is not as predictable as we would like, and in case of failures of developers, the value of the LINK coin may fall for a while. So investing is still associated with some risks.
