Everything you need to know about, Chainlink (link) cryptocurrency before investing !!

Chainlink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.

Summary :

In simple words, chain link provides real-world data to smart contracts on the blockchain. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. LINK tokens are the digital asset token used to pay for services on the network.

Anyone who has watched the crypto charts as of late can speak on the popularity of Chainlink (LINK). This popularity stems from a variety of different sources including the firm’s unique business model.

Unlike many of the other projects in the space at this time, Chainlink doesn’t seek to compete against other cryptocurrencies. Instead, the platform wants to advance the entire sector via its unique and advanced protocols.

What Problems Does Chainlink (LINK) Solve?

Chainlink attempts to rectify one of the biggest problems facing the blockchain sector, how to communicate information to and from the blockchain. Traditionally, this task is accomplished by sensors known as oracles. Oracles can be set up to monitor nearly anything. There are oracles that monitor the weather, sports scores, account balances, and the value of stocks, to name just a few.

Oracles expand the usability of blockchains because they provide a reliable way to initiate smart contracts when outside parameters are met. However, oracles are centralized. This centralization makes them the weakest spot in the blockchain. If an oracle becomes corrupted or is compromised, it puts the entire network at risk.

History of Chainlink (LINK)

Chainlink has been a project to watch for years. The program first entered the market in 2014 under the name SmartContract.com. Shortly after its launch, the name was changed to Chainlink to better represent the platform’s core market. Today, Chainlink helps to bridge the growing gap between external data sources and public blockchains in new and exciting ways.

In 2017, Chainlink hosted an ICO that was, at the time, one of the largest events to take place. The network has been in the spotlight ever since. In total, the crowdfunding event netting the platform a respectable sum of $32 million. This funding has helped Chainlink to push the boundaries of oracle reliability and security to new heights.

How Chainlink Works :

Components of The Chainlink Design

A Chainlink network is made up of a collection of Chainlink nodes with registered Job specifications, who can carry out Jobs execution coordinated by the on-chain Oracle contract(s), which use LINK Tokens as an incentive for the Chainlink node operators to serve clients via the Chainlink client smart contracts.

Oracle Smart Contract

The Oracle contract is at the center of the Chainlink design. This is a core aspect of how Chainlink is used in Kaleido blockchain networks.

  • Controls which Chainlink nodes are allowed to fulfill job requests
  • Gateway for client contracts to access the Chainlink network
  • Relays job execution results from the Chainlink network back to the client contract
  • Locks Chainlink node operator deposits as punishment for poor performance

The contract communicates with the Chainlink network nodes by publishing EVM events specifically designed to broadcast client requests for external data or job execution: OracleRequest. The request object contains the job ID, client payment amount, client’s desired job execution parameters, and callback addresses for the client contract to accept job execution results.

More than one Oracle contracts may be active in a blockchain network. A Chainlink node operator may choose which Oracle contracts to register with in order to be permitted to handle job requests. A Chainlink client contract may choose which Oracle to send the job request to.

Chainlink Reputation Contract

The first contract verifies an oracle’s authenticity. This coding will review the history of every oracle. The system looks at the past contributions of this oracle and how accurate they were. At the end of the assessment, the oracle receives a rank. This rank helps the system to easily utilize the best oracles.

Chainlink Order-Matching Contract

This contract delivers the Requesting Contract to the Chainlink nodes. When the nodes receive this request, they will start to bid on it. The system automatically configures the number of nodes and the node type needed to complete the request using preprogrammed prerequisites.

Chainlink Aggregating Contract

The last contract reconciles incorrect data. The system will review all the data that has completed the previous checks and balances. Any data that doesn’t fall in line with the other network inputs are disregarded. Once this step is complete, the data is validated and available to the blockchain.

Benefits of Chainlink :

Chainlink brings some major benefits to the network. Oracles are important to network expansion. They are at the core of some of the most exciting developments in the sector. For example, DEXs (decentralized exchanges) utilize oracles to determine the price of cryptocurrencies without offering an order book.

1. Access To Authentic Data And Information Through Oracle Operators

Using oracle operators has helped ChainLink be as transparent as possible. It has provided a way for information gathered from outside its blockchain to be successfully used in its blockchain. What makes it even more exciting is how the oracle function validates every piece of data and information accurately. It makes it a decentralized network that is authentic information used in the system.

2. An Efficient Security System For Its Users

ChainLink has incorporated a security system that guarantees accurate information. It has provided a four-way security system to guide its users to ensure the cryptocurrency is safe. The four-way security system has; validation system, reputation services, certification services, and contract upgrade service.

Validation system: This system helps users identify the best oracle to use as it monitors on-chain behavior and ensures it is correct.

Reputation services: This security service ensures that the ratings of every oracle user are recorded and published. It builds trust and improves the oracle reputation as authentic.

Certification services: This adds extra security to the first two security services. It will help guide users in selecting the right oracle and provide a certification to quality oracle providers.

Contract upgrade services: In case of a faulty oracle, this service acts as a backup. If the system is hacked, a new supporting oracle will be immediately generated.

3. A Secures Smart Contract Type

The introduction of smart contracts has helped the blockchain industry tackle fraud, a reason why investors do not want to be part of the ever-growing cryptocurrency market space. With smart contracts, there is zero probability of fraud. They act as a third party where agreements and funds are secure in case of breach of contract between two parties.

4. An Opportunity For A Business To Thrive

The dream for any investor who wants to liquidate a business opportunity is for the business to thrive. One major factor for this is having valid and authentic data and information to run the business. The ChainLink decentralized network has made it possible for any business to thrive as Oracle provides APIs which help authenticate outside information.

How to Buy Chainlink (LINK)

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How do I store my Chainlink(LINK) on the Ledger Nano S/X?

If you own a significant amount of money on Chainlink(LINK) or any other cryptocurrency, we heavily recommend using a hardware wallet like the Ledged nano S/X.

You can also use a reliable mobile Dapps like JAXX to keep your LINK safe and away from the hungry eyes of exchange hackers.

If you seek to make a major investment in LINK or if you are planning to HOLD this crypto for long periods of time, a hardware wallet is the best option.

If you own a significant amount of money on Chainlink(LINK) or any other cryptocurrency, we heavily recommend using a hardware wallet like the Ledged nano S/X.

Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger nano S or the more advanced Ledger nano X both support Chainlink (LINK).

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