How To Buy Chainlink (LINK) Crypto ?
About Decentralized Oracles
Chainlink, a blockchain service, goes hand in hand with the notion of contract oracles, so let us explain this term. Blockchains have no access to data which belong not to the network, that is why special programs are needed which would collect data from external sources for smart contracts. These programs are called oracles, they connect via API to any types of external sources, such as DApps, payment systems, etc. Contract oracles preferred by data providers, blockchain startups, DeFi sector. Many companies that use smart contracts have their own oracle solutions, but even they need third-party decentralized systems to carry out a lot of specific tasks. Besides, it is easier and more secure to be developing the main product and delegate oracles to third-party services. While centralized systems rely on the only data source, Chainlink offers a blockchain network for smart contracts to receive information verified by the consensus of contract oracles. This increases the quality of data and eliminates the risk of false information.
Chainlink Pros
LINK Crypto
LINK is an ERC677 token powering the Chainlink ecosystem that inherits the function set from the ERC20 standard. It was launched in June 2017 to pay Chainlink node operators for getting data used by smart contracts (in other words, collecting information from outside.) A Chainlink node operator should receive a certain payment to make a blockchain smart contract from an external network be integrated. Besides, the LINK token can be used for carrying out transactions. According to the developers, the cost of LINK depends directly on the number of Chainlink node operators: the more popular the company's product, the higher the price of its token. There is an opinion that the Chainlink project does not require a native token at all and could use other cryptocurrencies to carry out the same tasks. That is why some investors are reluctant to invest funds in LINK. But the developers assure in response that the LINK token will be irreplaceable after the launch of the full-scale network.
Brief History Of Chainlink
CEO Sergey Nazarov needed a programming team which was put together by CTO Steve Ellis who previously had worked as a software engineer at Secure Asset Exchange and Pivotal Labs. Besides, the international team includes Dimitri Roche, Mark Oblad, Alex Kwiatkowski, John Barker, Adelyn Zhou, Dan Kochis.
The team worked fruitfully from the start and within a short time managed to present a partially completed product with a new approach to using blockchain.
The ICO was announced in August 2017 and took place on September 19. The first LINK token sale was a great success: it brought the developers $32 million. But it should be noted that $29 million of the final amount were raised in pre-sale.
1 billion tokens were issued by the company: Chainlink node operators received 35%, another 35% were sold, and the remaining 30% were left for the company. Thus, 350,000,000 LINK tokens can be found in circulation.
What Makes Chainlink Unique
Different Chainlink nodes are used to obtain the needed data. They play the most important role in creating a consensus prior to returning the data to the smart contract which does not need to rely on just one contract oracle. Besides, nodes of the network can conduct tasks of not a single type. It is possible to make the data reception scheduled. Thus, they can be considered as a kind of data feed for smart contracts.
The system is structured in such a way that false data damage the reputation of a contract oracle severely and is punished by the network. The decentralized approach implemented by Chainlink which makes data not independent on just one resource guarantees oracle's fairness and delivering information of the best quality.
How The System Works
The network consists of the on-chain as well as off-chain parts. The on-chain component uses oracle contracts to process data requests from users.
Chainlink contracts consist of three elements:
- reputation contract recording and checking the metrics of oracle-service-provider performance;
- order-making contract which is required to log proposals from users, collect bids coming from oracle providers, and select them in conformance with reputation contracts;
- Chainlink aggregating contract which is used to collect the responses of oracle providers and compute the response according to these data.
To put it simply, an on-chain unit selects an oracle first, then reports the acquired data, and at the end aggregate the final result involving a Chainlink aggregating contract.
The second basic part of the system, off-chain oracle Chainlink nodes, refer to the Ethereum platform, harvest responses to requests from outside, and proceed data with the help of Chainlink Core.
Chainlink Cons
As for the cons, they can also be found. Marketing of the Chainlink project is focused mostly on the audience of institutional investors and companies that may actually use the new service. At the same time, there are few guarantees for investors that the partnership is going to be long-lasting and fruitful.
The second point is the relatively slow development process. It is unknown how much time the Chainlink creators will need to fulfill their promise to provide a comprehensive solution for carrying out financial transactions in full. Perhaps, this is the biggest complaint, taking into account the fact that there is no official roadmap of the Chainlink project and investors have no real opportunity to monitor whether the network has been developing according to the initial plan.
Prospects Of Chainlink and LINK
The smart contracts network Chainlink has found its important place in the DeFi sector. A significant part of the ecosystem relies on project oracles which have already become the industry standard. Besides, the Chainlink project was able to occupy a competition-free niche.
Decentralized contract oracles enhance the security of DeFi protocols. For example, they determine the prices of cryptocurrencies when issuing loans. The example of bZx is quite illustrative: in February 2020, a hacker found a way to withdraw nearly $1 million from bZx due to the price manipulations and the fact that bZx used only Kyber oracle. After this incident, bZx switched to Chainlink to prevent such occasions in the future.
LINK crypto is expected to grow in price due to the great potential of the Chainlink project and the obvious success of this smart contracts network. Chainlink is already chosen by the following protocols: Loopring, Ampleforth, Polkadot, etc. The list is glowing almost day by day.
Where To Buy LINK
Investing in Chainlink that increases blockchain data quality by buying LINK is the easiest way to become indirectly a part of a promising project and have a reasonable chance to earn much more money for selling the tokens then it is required now to buy them. In 2020, the total amount of new addresses and active wallets was tripled.
LINK is listed on many exchanges, such as Binance, Coinbase, BitMEX, P2B, etc. If you are looking for an exchange offering low prices, a completely understandable even for beginners user-friendly interface without distracting elements, over 300 coins and tokens available for trading, choose P2B. Here you can find the best deals without having to worry about transaction security.
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