Chainlink is software that allows the integration of real-world data (eg football scores, share prices, etc) into automated smart contracts.
They use an open-source decentralized blockchain to transparently and securely allow any industries (gaming, real estate, medical, etc) access to verified data that exists off-chain.
Blockchains and smart contracts are able to be secure and reliable because they only work with binary (true/false) questions, using data from inside of their network.
However, for smart contracts to realize their true potential they need to connect with the real-world and the abundance of digital data that it can provide. (market information, results, opinions polls, meter readings, etc)
Bridging the connection between the blockchain (on-chain) and the outside world (off-chain) requires an additional and separate piece of infrastructure, known as an oracle, and this is what Chainlink provides.
Chainlink is an open-source blockchain oracle that facilitates communication between blockchains and any off-chain system in a way that is tamper-proof and transparent.
e.g. data providers, web APIs, IoT devices, payment systems, and more.
They have developed a network of decentralized oracle networks (DONs) to transform the real-world data into a format that can be used by blockchain smart contracts. Each DON being set-up for each separate use case.
- a decentralized network ensures no one node or data source is a single point of failure or can be manipulated
- Service agreements, Reputation Systems, and Certification requirements ensure users can have confidence in the source and validity of the data
Chainlink’s LINK token is used as an incentive to compensate node operators for participating in tasks that lead to a successful supply of data to the blockchains.
Chainlink has over 1700 projects in its ecosystem that use its oracle services: https://www.chainlinkecosystem.com/
The LINK token is used as a reward to pay Chainlink nodes. At the same time, these nodes have to stake LINK in order to show their commitment to the network.
All of the Chainlink (LINK) tokens were released in 2017 with a maximum supply of this token capped at 1,000,000,000.
- 35.00% was allocated to Public Token Sale
- 35.00% was allocated to Node Operators & Ecosystem
- 30.00% was allocated to the Company
Currently (Apr 2023) the circulating supply is about 517 million tokens.
Most of the tokens not in circulation are still held for node operators and ecosystem development but no use schedule is available.
Team
VP
LinkedIn
Director
RSA Laboratories
Investors / Partners
Chainlink has over 1700 projects in its ecosystem that use its oracle services: https://www.chainlinkecosystem.com/
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References / FAQ’s
What is Chainlink and how does it work?
Chainlink is a decentralized oracle network that provides secure and reliable data inputs and outputs for smart contracts on the blockchain. It connects smart contracts to external data sources, APIs, and traditional payment systems in a way that is tamper-proof and transparent. Chainlink uses a network of nodes to fetch and verify data, and it uses a unique consensus algorithm called “Threshold Signatures” to ensure the accuracy and reliability of the data.
How is Chainlink different from other cryptocurrencies?
Chainlink is different from other cryptocurrencies in that it does not aim to replace traditional currency or financial systems. Instead, it is focused on providing a solution to the problem of trust and data reliability in smart contract execution. Chainlink is a decentralized oracle network, and its primary goal is to securely connect smart contracts to external data sources, such as market data, weather data, sports scores, and more.
What problems does Chainlink aim to solve in the blockchain space?
Chainlink aims to solve the problem of trust and reliability in smart contract execution. Smart contracts are self-executing contracts that automatically trigger when certain conditions are met. However, they are only as reliable as the data that feeds into them. Chainlink provides a way to securely and transparently fetch data from external sources, ensuring that smart contracts execute as intended.
What are the benefits of using Chainlink as a developer or business?
As a developer or business, using Chainlink can provide several benefits. Firstly, it can increase the security and reliability of your smart contract applications. Secondly, it can improve the speed and efficiency of data inputs and outputs, as well as reduce the cost of data delivery. Additionally, Chainlink provides a way to connect to a wide variety of data sources, allowing for more complex and sophisticated smart contracts.
How can I buy and store Chainlink tokens (LINK)?
You can buy Chainlink tokens (LINK) on many cryptocurrency exchanges, such as Binance, Coinbase, and Kraken. Once you have purchased LINK, you can store it in a cryptocurrency wallet that supports ERC-20 tokens, such as MyEtherWallet, Ledger, or Trezor. It’s important to make sure you keep your private keys secure, as they are needed to access and manage your LINK tokens.
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