Chainlink

What is Chainlink (LINK)?

CONNECTION is a native sign Chainlink network. The platform runs on the Ethereum network, and the LINK token is ERC-677 standard. Also known as a Transfer-and-Call token, this standard allows users to transfer tokens into contracts to trigger a pre-programmed response during a blockchain transaction.

Chainlink is Oracle’s multi-chain decentralized network. Users can create their own hybrids. smart contracts using the Chainlink service. Although Chainlink was built on top of Ethereum, it is also supported on other blockchain networks, including Polygon, Avalanche, and Binance Smart Chain.

Chainlink acts as a solution to the security and access issues associated with smart contracts. Since smart contracts cannot access data outside the blockchain, oracles act as a digital bridge that provides access to off-chain data. Smart contracts can then process the required data and conduct transactions without compromising security.

The most accurate trends in Chainlink prices and market performance can be seen in the chart above.

Who developed Chainlink?

Chainlink was created in collaboration with Sergei Nazarov and Steve Ellis. Nazarov has been involved in the blockchain business for over ten years, and Chainlink is his largest decentralized project to date. Ellis is Chainlink’s CTO with years of experience as a software engineer. He works to strengthen the data security of decentralized networks.

Chainlink’s goal is facilitate the process of smart contracts accessing off-chain data. Chainlink uses a series of oracle nodes known as decentralized oracle networks (DONs) that can transmit off-chain data to the main blockchain for processing and validating smart contracts.

The platform was launched in 2017. From its launch until mid-2019, Chainlink’s price showed little volatility and was relatively stable. However, the asset was affected by market trends.

Since August 2020, the asset has seen more frequent fluctuations, in line with the trends of larger cryptocurrencies such as Bitcoin (BTC). There has been remarkable growth throughout 2021. In May 2021, it reached its highest price for the year, with LINK’s highest price recorded at over $50.

What are the key features of Chainlink?

Supply of LINK tokens hard limit of 1 billion. Of this amount, approximately 35% of tokens were sold during the launch. Another 35% was reserved as a reserve for rewards and incentives for network participants and LINK token holders. The remaining 30% went to SmartContract.com, the chain’s parent company.

As an asset with limited supply, Chainlink is considered deflationary. LINK’s price is expected to rise as available supply becomes increasingly limited.

Oracle operations on the network are performed using the Chainlink token. It is used to cover node operator fees and provide access to needed data off-chain.

LINK tokens can also be staked using either implicit or explicit betting method. Former stakeholders are rewarded to incentivize them to continue contributing to the network. The latter is carried out by node operators who provide LINK as collateral to ensure network reliability and service transparency.

Rewards may vary depending on the contribution of nodes. In addition, rewards can be converted into cryptocurrency or fiat currencies and used for further network investments. Chainlink’s price is not tied to any asset and may vary depending on the trading pair used.