What is Chainlink (LINK)?

What is Chainlink (LINK)?

What is LINK and how do Data Oracles work? 

Chainlink is a data oracle platform developed on the Ethereum network with LINK as its native token used as a medium between the physical world and the digital asset world. LINK operates on the blockchain network with smart contracts aiding its functions.



Chainlink was developed in 2017 by Sergey Nazarov, CryptaMails creator, with the aim of uploading data in the real world onto the blockchain network for sustainable document storage.



Sergey Nazarov co-founded the company “SmartContract” with Steve Ellis, before establishing Chainlink Lab afterwards to help users to be able to draw external information onto the blockchain networks, including on-chain and off-chain operations.



LINK is limited to a maximum supply of 1 billion LINK with a current 45% already circulating (450 million LINK). LINK can be within the Chainlink platform to help direct external information into the blockchain network.





Interesting Technology on Chainlink



An interesting bit of technology behind Chainlink is the Blockchain Oracle that enhances users’ data uploading processes to be more accurate and efficient.



Essentially, the oracle is a bridge between the physical world and the digital world that utilizes smart contracts to connect through API systems that would help improve the effectiveness of data storage.



In the process of drawing and storing information, the off-chain function is the main component helping to direct data from the physical world onto the blockchain network, as well as allow a variety of data that can be stored, including election votes, temperature information, patient symptoms, or even the fluctuation of prices in a certain market.



LINK can be considered to be one of the highest in terms of market capitalization for networks with oracles that functions cross-chain, especially with games, Decentralized Applications (dApps), and other variations of blockchain networks.



Additionally, being a partner with firms such as Microsoft, Google, Intel, and more can be considered another upper hand Chainlink has in growing sustainably.



In the past 4 years, Chainlink has collaborated with over 755 projects, some even in the fields of property management, Decentralized Finance (DeFi), NFTs, games, and much more.



All in all, it is safe to say that Chainlink is an important component in the world of cryptocurrency as it is able to directly draw external information onto the blockchain network, whilst also displaying coin values in real-time and allowing dApps to function in cooperation effectively as well.





Conclusion



Chainlink is recognized to be a cryptocurrency with one of the highest market caps with clear goals and the ability to bridge the physical and digital worlds. Nonetheless, it is integral that investors conduct additional research to construct risk management strategies and suitable investment methods.





Reference:



Wikipedia, Binance Academy, Liquid, Gemini, Ecosystem, Coinmarketcap

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