What is ChainLink cryptocurrency and how it works

In this article I will explain what Chainlink cryptocurrency is and how it works.

In the crypto world there are many projects, each with unique characteristics, while others are just projects that have no value.

Chainlink on the other hand is one of those that I can have a development and a good adoption.

But let’s look at Chainlink cryptocurrency together, analyzing the project and the development it has on the market.

What is ChainLink cryptocurrency

Chainlink is a cryptocurrency that focuses on smart contracts and their implementation outside the blockchain.

That is, the problem that exists today is what some companies or applications or services do not yet use smart contracts.

That’s why chainlink allows these services or applications to connect to a blockchain and exchange information.

This project is unique of its kind, because it allows to integrate information of the old system on the block chain on its own blockhain.

This happens thanks to the Oracles, who are validators of the decentralized blocks that deal with bringing data from outside to inside.

Chainlink does not have its own blockchain but relies on that of Ethereum, using the EC-20 type contract.

This project is very young, in fact it was born in 2017 through an ICO and its creators are CEO Sergey Nazarov and CTO Steve Ellis.

The Link token serves to reward the oracles that perform the validations, and fund future projects.

The total availability of the Token is 1 billion and is thus divided:

  • 350 million were sold during the ICO (35%);
  • 350 Millions would go to the operators of the Nodes (Oracoli)
  • And the remaining 300 million would go to the company for project funding.

How Chainlink Cryptocurrency works

How Chainlink Cryptocurrency works

As I said above, link uses a distributed system of oracles that validate the blocks and allow the network to work.

These Oracles (Nodes) can be created by everyone, configuring the hardware set.

Here you can read the configuration to create a Chainlink node.

To reduce data corruption, more information is collected on multiple nodes (oracles), increasing the accuracy of the data.

Chainlink works on two layers:

  • On chain where the furi chain data are processed;
  • Off chain where oracles receive data and process it on the etchaum blockchain.

Each contract that runs on the chainlink chains performs three functions:

  •      One feature that controls the authenticity of the oracle;
  •      One works that takes orders and distributes them to various oracles;
  •      It is a function that accumulates the data of the oracles and returns the accurate result.
chainlink operation

The calculation process on the Off-chain network takes place through the ChainLink Core software, which allows the integration between out-of-chain data and those on the blockchain.

In exchange for the process of verification and validation of the blocks, the oracles are paid with the Token Link.

The platform also uses a memory protection system in order to keep the network honest.

That is, it uses an “Enclave”, a technology called Intel Software Guard Extensions (SGS) where honest node information is stored so that it is not tampered with.

Purchase and storage of Token Link

Link can be purchased on many cryptocurrency exchanges including Binance, Coinbase and Kucoin.

Currently, the market availability is around 365 million, and its price is:

This price may increase because the token is used to validate the blocks, but only if the project becomes widely used.

It can be stored in wallets that have ERC-20 token support such as Myethewallet, Exodus, etc.

Or it can be stored on media Ledger nano or Trezor that are Hardware Wallets.

More on Chainlink

The company has close cooperation with many companies including SWIFT which is a leader in the money transfer system.

Zepelin_os which is another partner in the development of smart contract and Request Network.

His whitepiper is available here.

This is what it is to view transactions on the blockchain.

His official website is here.

The community pages are:

Conclusion

This project is very interesting, it has many qualities to be able to continue its development.

It is the first and yet only platform that has this function.

The world of cryptocurrencies is still expanding but above all it is constantly evolving.

So looking for interesting projects is very difficult but if you consider the link data you could start with a few more advantages.

But these are just ideas and not financial advice, take this information to make your assessments.

Leave a comment

Solve : *
4 + 1 =