Exchange rate Chainlink:
Project related websites:
- What is a smart contract?
- What does the term Oracle mean?
- What is Chainlink? For what purpose was it launched?
- Who Created Chailnik? The history of the project
- Chainlink partnership with Celar, Katallasos and Mobilum
- Who is Chainlink for?
- Chainlink token (LINK) - what role does it play in the project?
- LINK token on the chart
- Advantages of Chainlink
- Cryptocurrency wallet for the LINK token
- LINK token - on which exchanges is it available?
- Cryptocurrency wallets for the LINK token
- Cryptocurrency exchanges for Chainlink (LINK)
What is a smart contract?
Before we dive into our Chainlink analysis, let's focus on what smart contracts actually are. It is important to understand this at the beginning, as they play quite an important role in the ecosystem of this project.
The easiest way to explain this term is to compare it to a standard contract. Based on the differences, you can easily get a picture of what this smart contract (also known as a smart contract) actually is. While a regular contract sets out the conditions governing a law-enforced relationship, a smart contract enforces this type of relationship using cryptographic code.
Due to the fact that the smart contract is placed on a decentralized network, neither party can change its code or prevent its execution. In other words, the content of such an agreement cannot be changed. Such a dose of basic information about smart contracts will certainly help you understand the whole idea of the Chainlink project, which we will talk about in the following paragraphs. So let's move on!
What does the term Oracle mean?
In the rest of the material, we will very often use the term "Oracle". Translated into Polish, it means "oracles" - but it is not a literal reflection of what is hidden under this word, therefore we will stick to its English equivalent. Using a metaphor, we can say that it is a kind of "agent" that searches for and then verifies events in the real world. It then passes this information to a blockchain for use in smart contracts.
So Oracle is responsible for delivering the external data necessary to run a smart contract when predetermined conditions are met.
Good to know: Oracle is a third party service with a centralized control point. They are not part of the blockchain consensus mechanism. Smart contracts face a big problem because they are not sure if the data from Oracle is trustworthy.
As smart contracts can be self-executing, based on certain conditions, it is very important that Oracle provides reliable and validated information. For example, if inaccurate data related to stock prices are sent to the blockchain and an intelligent contract is based on it, it may perform the wrong function based on incorrect information.
We can distinguish two types of Oracle here: those that rely on notarized data checking and those for which information will be entered manually by a human. Both of them are buggy. As for the first case, the need for verification may be recursive. The latter is resource-intensive and cannot deliver the information you need on time. These are the problems that Oracle's decentralized network for smart contracts is solving. This is how we jump to the next, equally interesting chapter, in which we will tell about the Chainlink mission!
What is Chainlink? For what purpose was it launched?
This project was created to solve the problem faced by smart contracts. Well, they did not have access to data on their own. At the time when developers were implementing the selected smart contract, they encountered a connectivity problem. It was unable to connect to key external resources, such as data outside the chain or APIs (a strictly defined set of rules and descriptions how computer programs communicate with each other).
The lack of external connectivity was a problem for any smart network of contracts. Moreover, connecting smart contracts to input data through a single node was not a good solution, as there was a point of failure here. The solution to this problem was the highly decentralized Oracle Chainlink network.
Good to know: Chainlink offers the same security guarantee as the smart contracts themselves.
Highlights: The Chainlink White Paper was released on September 4, 2017. This network makes it easy to connect smart contracts with data sources and APIs that are necessary for their operation. Chainlink also allows you to send funds. This project collaborates with banking technology leaders such as SWIFT. This is how it connects banks with smart contracts.
The motto of the Chainlink project is that smart contracts should be reliable! This means that the input and output data on which such a contract is based must be secure!
Who Created Chailnik? The history of the project
The project was founded by Sergei Nazarov, who is currently CEO of Chainlink, and Steve Ellis, director of technology. The company behind it is called SmartContract. Its headquarters are in San Francisco.
In September 2017, Chainlink raised $ 32 million in an Initial Coin Offering (ICO). At the same time, a billion LINK tokens were issued, the use of which will be discussed in more detail in the following chapters.
In November 2018, Chainlink took over the Town Crier system. It is a highly reputable smart contract as well as a data protection focused project. This system complements Oracle Chainlink.
What problems has Town Crier tackled? Well, it uses Intel SGX technology to provide a strong assurance that data comes from an existing, trustworthy source.
Good to know: The innovative Intel SGX technology is becoming more and more popular among many applications designed to protect programs against external interference. When fully extended, this abbreviation stands for Software Guard Extensions. It defines private regions of the computer's memory known as enclaves.
Even the Town Crier server operators are not able to manipulate the data processed by this system. How is it used in the Chainlink project? Well, it increases the privacy and verifiable authenticity of data that flows into the decentralized Oracle network.
IMPORTANT: By using Town Crier the Oracle nodes located in Chainlink will be able to ensure that the data provided by them has not been changed BEFORE or DURING the transfer to the smart contract.
In May 2019, Chainlink was launched on the Ethereum network.
Chainlink partnership with Celar, Katallasos and Mobilum
In February 2019, Chainlink joined forces with the Celar platform. What did this partnership give them? Well, it allows Celar users to make payments based on the output from the Oracle Chainlink network. This combination reduces the number of off-network transactions for two-way payment channels from 4 to one related to Oracle. It should be added here that in this way, costs are reduced and privacy is increased.
As for the partnership with Katallasos, the Oracle Chainlink network allows its financial contracts to access information off the chain. Thus, it plays a very important role in its applications.
In turn, Mobilum uses Chainlink as a secure and authentic off-chain data file for its trading platform. It should be said here that this platform uses over-the-counter price lists to agree on the cryptocurrency amounts needed for settlement. Chainlink allows it for instant transactions, better liquidity and lower delays when the data is filtered into the system.
Who is Chainlink for?
Now let's focus on who Chainlink can be targeted at. If you have read the chapter on partnerships, you have probably guessed which companies and enterprises may benefit from this network. These include payment and service providers.
Interestingly, from the very assumption of Chainlink it follows that this system is to allow anyone who has a data file or any other API to send them to smart contracts in exchange for LINK tokens. In other words, node operators allow data providers to submit their API-based services directly to a smart contract in exchange for a Chainlink token.
Chainlink token (LINK) - what role does it play in the project?
The topic of the LINK token belonging to the Chainlink project has already been covered in some way in the chapter above. You already know what its use is. To put it simply, it is a form of a fee for using the service offered within Chainlink.
The LINK token was created to become a currency in which node operators are remunerated. Its value is largely correlated with the number of operators offering off-chain services for the system. Due to the fact that these tokens are closely related to the Chainlink platform, the greater the use of this project, the higher the price for LINK coins.
Good to know: Node providers with more LINK tokens should be rewarded with larger contracts. If they do not provide accurate information, they will be fined and a certain amount of tokens will simply be taken from them. Looking at it from a different perspective, we can see that the more LINK coins there are in closed contracts, the smaller the supply and the higher the price!
When discussing the LINK token from the technical side, it should be said that it is described by programmers as: "ERC-20 token with an additional ERC223 transfer and forwarding function, enabling the receipt and processing of tokens on the basis of contracts in one transaction".
What about the number of LINK tokens in circulation? Well, their total supply is one billion coins. Token sales have been capped at 32 million. 35% of all tokens are to go to node operators to encourage the ecosystem, another 35% were sold in the ICO, the remaining 30% remained with Chainlink for further development and rewarding employees.
LINK token on the chart
Let's start with the fact that this token is currently ranked 16th in the CoinMarketCap ranking. Currently, its price is 2.28 USD (as of 01/08/2020). He recorded his ATH on June 29, 2019 with the amount of USD 4.27.
Advantages of Chainlink
When discussing this project, it should be emphasized that its network has been built in such a way that it can be updated. As a result, its various components can be replaced as better techniques and technologies emerge.
Moreover, each supplier as well as an individual developer can join Chainlik by connecting the API to the network. Once connected to Chainlink, the user becomes the node operator of this project. They then receive a compensation in LINK tokens for each successful request in the chain.
The Chainlink project provides a fully decentralized Oracle network (oracles) that are compatible with Bitcoin, Ethereum and Hyperledger.
Cryptocurrency wallet for the LINK token
LINK tokens can be assigned to any cryptocurrency wallet that supports ERC-20 tokens.
Cryptocurrency wallets for the LINK token
LINK token - on which exchanges is it available?
The token belonging to Chainlink is available on few cryptocurrency exchanges. We present the most renowned platforms below. In the near future, the LINK token will also appear on the Polish cryptocurrency exchange TOKENEO!
Cryptocurrency exchanges for Chainlink (LINK)
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