CHAINLINK – $LINK
Blockchain has a major flaw, and that is bringing off-chain data, on-chain.
Chainlink will act as the bridge between the two.
This is a Project Review on $LINK.
Chainlink is a decentralized oracle network that was created by Steve Ellis & Sergey Nazarov that first launched in 2017, on the Ethereum network.
First, let’s understand what Chainlink does and how it works.
Chainlink is a ‘Decentralized Oracle Network (DONs)’ maintained by Chainlink ‘Node Operators’, that provides off-chain (real-world) data to smart contracts on the blockchain.
DONs are designed to serve as a tool for ‘Application Developers’ to create off-chain support for their smart contracts on any network supported by Chainlink.
Simply put, the ‘Oracle’ is the infrastructure to bridge both on-chain & off-chain environments.
Naturally, ‘Smart Contracts’ can not interact with data in the real world, such as events, weather, news & so on. That is why $LINK has the special component ‘Oracle’, which links one another in a reliable, tamper-resistant way.
Users/Developers will send a ‘Requesting Contract’ to Node Operators, they will pay ‘Node Operators’ for completing their work with LINK tokens. A ‘Requesting Contract’ is a smart contract that requires data.
The Nodes then use a software called ‘Chainlink Core’ which translates the request of data from an ‘on-chain’ programming language to a data source usable in the real world.
The ‘real world’ data is then put through an external API which feeds back into the ‘Chainlink Core’ software, translating it back to a #blockchain language and sent back to the ‘Chainlink Aggregating Contract’. The ‘Chainlink Aggregating Contract’ can validate data from single/multiple sources (Nodes).
For example, 6 nodes will send one answer and 3 other nodes have a different answer to the data, the two other answers are discarded and labelled faulty. The process is repeated through multiple nodes until the data is averaged to the same answer.
1- ‘Requesting Contract’ users will use LINK to pay ‘Node Operators’ for their services.
2- ‘Node Operators’ must stake their LINK tokens, the more tokens you stake, the more requests you will receive. Thereby making more LINK tokens.
Chainlink started on the Ethereum Network and today it connects to over 15 different Networks and supports over 1500 projects! This is huge growth in 5 years and proves it is a needed service!
Network – Projects supported:
Even some of the largest global enterprises leverage Chainlink, such as Google cloud, Amazon Web Service (AWS) cloud and more! As we can see Chainlink opens the door to enterprises who wish to leverage the benefits of Blockchain technology.
At the time of writing the LINK token is worth $8.03 with a market cap of $3.7B. In July 2021, the market cap peaked at a huge $20.4B with a price of $52!
Chainlink Socials & Websites
Twitter – @Chainlink
Website – chain.link