What is the Chainlink (LINK)?

A high level review of ChainLink

April 2020, 5 min read

Chainlink logo

O ne of the drawbacks of blockchain technology was a limitation on its connectivity to real-world data. This is where ChainLink comes in, a project designed to make the real-world data accessible on the blockchain. The data from different sources such as off-chain APIs, data pools, and other data sources could be integrated into the blockchain.


The Need for ChainLink

The real-world data that exists outside the blockchain, such as online payment methods, bank details, etc, needs to be made part of the blockchain to enable more applications to be built on the blockchain.


In short, the goal of the ChainLink is to bridge the gap that exists between the real-world data and the smart contracts that exist on the blockchain.


For example, an application on the blockchain network that requires bank details to be integrated into it would require an intermediary to help in doing so. ChainLink does it using by using “oracles.”


What are Blockchain Oracles?

According to studies, almost 80% percent of the smart contracts designed on the blockchain requires data input from outside blockchain.


Inbound oracles allow the real-world data to be brought onto on-chain and outbound oracles works in the opposite direction as data could be moved from outside the blockchain.


LINK -ChainLink Token

LINK, the native token of ChainLink, is available on major cryptocurrency exchanges, including Binance. The partnership with trusted and the big business of ChainLink has helped in increasing and maintain the value of LINK.


The year 2019 proved quite well for LINK as a cryptocurrency as its value took from USD 0.29 to USD 1.80 between January 1st, 2019, and January 1st, 2020.


What makes ChainLink different from other Crypto Projects?

  • The first and foremost feature that makes ChainLink unique is the idea of bridging the gap between smart contracts that are restricted when it comes to accessibility of data outside the blockchain. Something never did before.
  • ChainLink makes the whole process decentralized to defeat the purpose of relying on centralized oracles that currently exist.


Outlook

When it comes to cryptocurrencies in general, the “community” driven factor is one of the significant features that make cryptocurrency and blockchain one of the revolutionary inventions in the recent era. When you want to invest in any crypto project, the volatility factor makes it challenging to make a final decision. Few things that could help in deciding on investment could be the team behind the project, the business partners of the project, and the goal that they want to achieve.