The Guide of Chainlink
What is Chainlink?
Chainlink is a decentralized network of nodes that provides data and information from off-blockchain sources to on blockchain smart contracts via Oracle.
Link is an ERC-20 token running on the Ethereum platform which is used to pay Chainlink node operators when making transactions. This payment is in the form of taking / buying data off-chain to the blockchain.
In general, Chainlink is similar to platforms such as the Appstore or Google Playstore which is a Middleware.
The Appstore provides services for various parties to sell their applications within the Appstore itself, the profits obtained by the store come from all the applications listed in it.
For Chainlink itself, the benefits obtained are not in the form of cash or mining processes but in token LINK, users who want to buy data through Chainlink must use the token link as payment.
Who was founded and created Chainlink?
Sergey Nazarov is a co-founder and CEO at Chainlink Labs. Then in 2014, Nazarov teamed up with Steve Ellis and launched Smart Contract. Smart Contract as one of the entrepreneurial ventures because it led Sergey Nazarov to the founding of Chainlink.
What is Chainlink used for?
Chainlink serves as a bridge between blockchain and non-blockchain technologies, for example connecting smart contracts with data feeds, traditional bank accounts, and web APIs.
While LINK as a cryptocurrency from Chainlink can be mainly used for global payments such as GOOGLE and SWIFT.
GOOGLE also says that it can use Chainlink to bridge the gap between its Cloud Biquery service and Ethereum Contract.
In addition, LINK can also be used as a trading or investment instrument.
What Makes Chainlink Unique?
Chainlink is the one of the first networks which allow the integration of off-chain data into smart contracts. Supported by many trusted partners, Chainlink is one of the major players in the data processing field.
Chainlink has attracted the attention of numerous trusted data providers such as Huobi because of the integration of off-chain data. Data providers can sell access to data to Chainlink directly. Thus, monetizing the information they hold.
Chainlink as a decentralized network allows users to become node operators and earn revenue by running the critical data infrastructure required for blockchain’s success. Large collection of node operators used by Chainlink to collectively support a wide range of decentralized Price Feed oracle networks live in-production, which currently secure billions in value for leading DeFi applications like Synthetix, Aave, yEarn, and more.
How Many Chainlink (LINK) Coins Are There in Circulation?
During the initial coin offering (ICO) for LINK, Chainlink announced a total and maximum supply of 1,000,000,000 LINK tokens. The current supply is about 419,009,556 LINK tokens or about 42% of the total supply.
How is the Chainlink Network Secured?
As an Ethereum-based ERC-20 token, Chainlink is secured by the proof-of-stake (PoS) consensus mechanism. Unlike Bitcoin which using the proof-of-work (PoW) consensus, Chainlink which using PoS relies on the amount of staked tokens for selecting node validators.
PoS protocols were created with the idea of against the massive power consumption required by PoW systems. PoS protocols are becoming increasingly popular as they need less electrical power and are easily scalable. While PoW has proven as a reliable consensus mechanism, Ethereum and all other ERC-20 tokens have been growing and setting the trend rapidly.
How do I get LINK?
Although LINK cannot be obtained through mining, you can buy and sell LINK at an exchanger. Archidax is the best exchange platform to buy, sell, trade, and store LINK easily.
