What Is ChainLink Crypto?
Initially based in the USA, SmartContract company was focused on a rather narrow sector – optimizing smart contracts in the blockchain industry and solving problems that arise when using them. One of these solutions was the ChainLink project.
Chainlink Current Price
Today Chainlink price is 27.3853 USD.
What Is LINK Coin?
Using LINK tokens, native tokens of the ChainLink project, creators allow information providers to earn money. The more productive a supplier is, the more the company gets. LINK tokens are not designed for mining, however, there should be no problems with storing coins. The cryptocurrency is based on Ethereum, so you can keep LINK on any wallet that supports the Ethereum algorithm.
The total number of LINK coins is 1 billion tokens, but only 350 million are available on the market, the rest of the funds go to the development of the project.
What Does ChainLink Do?
What is the essence of this promising project? It solves the problem of technical compatibility of blockchain technology with data transfer methods that are used by most modern organizations. If earlier smart contracts worked exclusively in the crypto sphere, today the situation has changed dramatically: the so-called traditional companies also need blockchain technologies.
The fact is that most smart contracts, which are needed for stable work, require access to data from third-party companies. You don't have to go far for example. To issue loans through smart contracts, you need detailed information about the borrower's interest rates and credit history. This data is requested from various sources and accumulated using blockchain technologies. The exact same scheme works with insurance companies.
The same data is needed by financial cryptocurrency platforms: exchanges and investment platforms. The blockchain-based logistics industry needs data from GPS and other navigators. The creators of ChainLink want to implement a whole network of oracles that will be compatible with BTC, ETH and subsequently with other cryptocurrencies. LINK provides interoperability between chains such as Bitcoin and Enthereum and even allows traditional systems to be connected without the need for significant changes in classic institutions. In turn, the decentralization of the execution of smart contracts will significantly increase the accuracy and security of the information received.
How Does ChainLink Work?
Blockchains running smart contracts cannot maintain their own communication with external systems, and smart contracts are not able to independently connect off-chain.
Oracles act as intermediaries between blockchains and smart contracts. They provide communication with the outside world. However, modern oracles are centralized services, which means that any smart contract using such services has a single point of failure that negates any benefits derived from the decentralized nature of smart contracts.
To fill this gap, ChainLink was designed as the first decentralized oracle to provide external data for smart contracts. As a result, the security and determinism of smart contracts can be combined with the knowledge and breadth of coverage of real external events.
ChainLink network has two layers:
- The first level is off-chain, or a subnet of oracle nodes that collect information from third-party sources – databases, APIs, and so on. The oracles work independently of each other in accordance with the specified metrics.
- The second level is on-chain, which is responsible for the selection of oracles corresponding to the smart contract.
Without such oracles, companies would have to contract and exchange information in the traditional way. ChainLink provides the ability to do the same using blockchain technology, making the exchange of information between companies more secure and reliable.
ChainLink News Today
The project team cooperates with SWIFT, the world's largest provider of secure financial transactions. Thanks to this cooperation, the crypto network has access to the world's largest banks that are ready to exchange information, which has a positive effect on the LINK cost.
The project has a transparent, quite understandable, and most importantly, quite achievable goal in its market segment. In general, LINK cryptocurrency has sufficient prospects for strengthening and growth.
Is ChainLink A Good Investment?
Many analysts believe that LINK price fluctuations will be highly dependent on BTC. But it all depends on the activity of the team, a potential technological breakthrough or partnerships with large companies.
To stay up to date on Chainlink price prediction use StealthEX.
How High Will Chainlink Go?
Provided Chainlink continues to expand its base and establish new partnerships, LINK will remain relevant in the industry and stay ahead of the competition. This could potentially increase its value by 100 times.
Where To Buy Chainlink Cryptocurrency?
If you are interested in the LINK coin and want to invest in it, then you can buy or exchange it at StealthEX.
How To Buy LINK Crypto?
The process takes just a few minutes, just go to StealthEX.io and follow these easy steps:
- Choose the pair and the amount for your exchange. For example BTC to LINK.
- Provide the recipient address to which the coins will be transferred.
- Move your cryptocurrency for the exchange.
- Receive your coins.
Also, you can study a detailed article with an exchange guide or watch a tutorial video on our YouTube channel.
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.