If you want to buy cryptocurrencies but are confused about which one will be the best, then you have come to the right place. Have you heard about Chainlink? If not, then worry not, as here you will get to know about Chainlink in detail. Even since its introduction in cryptocurrency, Chainlink has attracted many and has gradually evolved to be a challenge for other cryptocurrency biggies. Without any further delay, let’s start knowing what Chainlink is.
A decentralized network based on oracle is the Chainlink. The primary purpose is to be an intermediary between an external data source and smart contracts. Likewise, Chainlink permits investors to get safe access to the off-chain data feeds. With the Chainlink, you can invest in reliable output and input free from any tampering to work with blockchains when applied on complex smart contracts.
With the Chainlink (LINK), you can connect real-world data with the digital asset. The token of this cryptocurrency is LINK. You can use this LINK token to pay for transactions of smart contracts when conducting over the Chainlink network. Compare to fiat currencies, and the Chainlink tokens have their own set of values. When a problem occurs in a decentralized blockchain, Chainlink tries to solve this problem by decentralizing those systems that use oracles and APIs and checks whether the data provided is pertinent to the contract.
The Chainlink acts as a bridge between its network and blockchain. Further, it gathers the data from a trustworthy oracle or node and then can produce several subcontracts. In Chainlink, the blockchain acts as a middleman to important information to conventional payment systems without harming the security or compromising decentralization.
The year 2014 September saw the emergence of Chainlink by Sergey Nazarov into the market of cryptocurrency. Initially, a parent company named SmartContract.com was established to bridge the gap between blockchain and external data sources. Eventually, the entire company came up with Chainlink. Unfortunately, the oracle problem of Chainlink is something that is issuing from the smart contracts. To resolve this problem, they established a fund-raising event in 2017, where they successfully collected $32 million.
As has already been mentioned, the main focus is on smart contracts. These smart contracts are provided by Chainlink to help you get access to APIs that you want to connect to. Therefore, if you plan to make a payment using Chainlink, you can ease any banking system or other payment methods. Smart contracts serve three major functions:
Besides the vital features of smart contracts on the Chainlink blockchain, there are some advantages of using Chainlink token that needs special mention. They are as follows:
Although buying tokens in Chainlink may appear to be a hell lot of a task initially, once you master the art of purchasing LINK, working with the blockchain is as easy as a breeze. When you plan to buy a LINK, you can either do it through a broker or use an exchange platform. However, make sure that the chosen exchange platform allows you to deposit funds through credit or debit cards.
Most of you may think to store the LINK token right on the cryptocurrency exchange platform. However, that is not a very secure place for your LINK. For better security, purchasing a digital wallet for storing cryptocurrency is the best that you can do for your digital asset. There is a problem with the cryptocurrency wallet. Since they are secured with a password, if you forget the password, everything is gone! So, it is better to note down the password so that you can get access to your wallet’s contents even if you forget the password.
To choose a suitable wallet for your cryptocurrency, you need to consider why you need the wallet or for what purpose. Then, take a look at the amount that you need to store in the wallet. To make your digital asset more secure, both hardware and software wallets are suitable. At present, you can use Ledger as a reliable hardware wallet if you are ready to spend a little more as hardware wallets are expensive. For more extensive links, spending a bit more and storing data in hardware wallets is worth it.
Just like you download apps on your mobile devices, software wallets work similarly. They can be both non-custodial and custodial. When the wallet is custodial, a service provider takes the responsibility of looking after your private key. On the other hand, the non-custodial wallets provide utmost security to store the private key on your device. Although working with software wallets imparts convenience, yet they are not better than hardware wallets.
Having solved its prevalent ‘oracle problem,’ the popularity has increased. Now, it is the perfect time to buy LINK tokens. If you are afraid to work with the Chainlink blockchain network on your own, you can help a broker.
The working of Chainlink can be divided into three processes – oracle selection, data reporting, and result aggregation. In the first step of selecting an oracle, a user has to draft an SLA or service legal agreement. This agreement will specify the requirements of data. The next step is data reporting, where the real-world data is obtained from external data sources. Then, the data is processed and sent to the smart contracts via the Chainlink blockchain network. Finally, the data that oracles have collected is matched to the data that has been sent back.
Chainlink is a blockchain technology that SmartContract.com founded in 2014. To develop this Oracle-based cryptocurrency, Data Collective (a San Francisco-based investment company) helped SmartContracts.com. Before being the CEO of Chainlink, Sergey Nazarov worked as the founder of another cryptocurrency exchange platform. Nazarov joined hands with Steve Ellis and created a reliable blockchain network. Another noteworthy founder member of Chainlink is Ari Juels, who drafted the whitepaper of Chainlink.