What is ChainLink?

What is ChainLink (LINK)?

ChainLink is a decentralized blockchain oracles service. The digital currency of ChainLink has facilitated the use of contracts that connect to applications, payment systems, transactions. This technology allows users to exchange assets without the involvement of third parties.

Oracles provide external data that trigger smart contract executions upon the fulfillment of pre-defined conditions. Participants on the ChainLink network are incentivized (through rewards) to provide smart contracts with access to external data feeds. Should users desire access to off-chain data, they can submit a requesting contract to ChainLink’s network. These contracts will match the requesting contract with the appropriate oracles. The contracts include a reputation contract, an order-matching contract, and an aggregating contract. The aggregating contract gathers data of the selected oracles to find the most accurate result.

The cryptocurrency system uses Link tokens, which provide information security for the user. They read the information streams off-network and thus guarantee the security of the user’s data. The user who has a file with information about the product, payment system or other services can give them to the contract and exchange for tokens. The ChainLink team is represented by Director Sergey Nazarov and technical Director Steve Ellis and a team of specialists who are engaged in consultation.

The differences between LINK and Bitcoin

Specifications ChainLink (LINK) Bitcoin (BTC)
Coin limit 1 billion 21 million
Price $4.07 $9,652.28 USD
Market Cap $1,423,042,006 $175,884,981,702
Trading Volume $583,729,069 $47,331,971,189
24h Low $3.93 USD $9,605.08
24h High $4.71 $9,957.18
7d Low $3.33 USD $9,605.08
7d High $4.83 USD $10,457.63
Market Cap Rank 13 1
Creator Utopian Future Satoshi Nakamoto
All-Time High $4.83 USD (Feb 16, 2020) $20,089.00 USD (Dec 17, 2017)
All-Time Low $0.126297 USD (Sep 23, 2017) $65.53 USD (Jul 05, 2013)

There are three features of Chain.link. First, creating secure cross-chain connectivity between your main smart contract and any other public or private chain. Second, easily connecting smart contracts on various networks to your existing application and critical external data. Third, sending payments from your smart contract to existing bank accounts and over widely used payment networks.

1) Smart contracts

what-is-chainlink
Image via Chain.link

 

 

 

 

 

 

Smart contracts require secure middleware to connect them to real-world data. This external data will trigger the contract, creating the need for its high reliability. However, it cannot access data on their own. When developers implement their chosen smart contracts, they encounter a connectivity problem. Their smart contract is unable to connect with key external resources like off-chain data and APIs. This lack of external connectivity is due to the method by which consensus is reached around a blockchain’s transaction data and is a problem for every smart contract network.

2) Centralized oracles

what-is-chainlink
Image via Chain.link

Connecting smart contracts to data inputs through a single node creates the same problem that smart contracts themselves seek to avoid, a single point of failure. With a single oracle node, your smart contract is only as reliable as that one node. A highly reliable decentralized oracle network is the solution. Chainlink’s decentralized oracle network provides the same security guarantees as smart contracts themselves. By allowing multiple Chainlinks to evaluate the same data before it becomes a trigger, we eliminate any one point of failure and maintain the overall value of a smart contract that is highly secure, reliable, and trustworthy.

3) API connection

what-is-chainlink
Image via Chain.link

Connecting your smart contracts to the inputs and outputs it needs. Building a truly valuable smart contract requires the use of multiple inputs to prove contractual performance, as well as multiple outputs to affect outside systems and/or send payment to complete the smart contract. Chainlink provides your smart contract with the inputs and outputs it needs to reach its full potential.

Chainlink’s team

The ChainLink team is represented by Director Sergey Nazarov and technical Director Steve Ellis and a team of specialists who are engaged in consultation.

what-is-chainlink

 

 

 

 

 

 

 

 

 

  • Sergey Nazarov (CEO): Starting his career at FirstMark Capital, he left to join the cryptocurrency revolution in 2011. He firmly believes blockchain technology has the ability to change the way societies distribute wealth, enforce contracts, and share critical information.
  • Steve Ellis (CTO): Previously a software engineer and team lead at Pivotal Labs, where he worked on securing sensitive HIPAA compliant data and building scalable payments automation software. He’s a big fan of Ethereum, Bitcoin and the decentralized future we’re all building.
  • Dimitri Roche (Software Engineer): He was previously a software engineer at Pivotal Labs and McKinsey. Going on to lead engineering teams at large companies like Infogroup. He’s excited about the positive societal impact of smart contracts, through the fairness and transparency they create.

  • Mark Oblad (Head of Operations): He works at Gunderson Dettmer, helping manage the growth of leading global hedge funds. Going on to build Valcu, a technical leader in contract automation software, where Mark saw the large potential of externally connected smart contracts.

  • Evan Cheng (Technical Advisor): He is one of the creators of LLVM which generates the low-level machine code running every Apple device, as well as much of Google, Nvidia, and Intel. He is currently the Director of Engineering at Facebook.

  • Brian Lio (Advisor) is the CEO of Smith+Crown, a widely accepted leader in blockchain research. Providing an in-depth analysis of both ongoing token sales and the larger evolution of decentralized technology over the past 2 years.

  • Hudson Jameson (Technical Advisor) is the Ethereum community manager, a well-known authority on smart contracts, and the Ethereum development roadmap.

Conclusion

The ChainLink project is not the easiest to come to grips with, but once you do it’s easy to see how it can benefit the blockchain ecosystem massively going forward. Blockchains by themselves are very limited, and they require oracles to unlock their full potential. And because ChainLink is one of the few projects working on oracle development they could easily become an industry leader for years to come.

The lack of marketing has caused concern among the ChainLink community, but that is offset by the partnerships being forged by the ChainLink team. Honestly, if they are successful with SWIFT they may not need marketing and will become a billion-dollar whale within the financial services community regardless.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS