If blockchains are to give us the internet of money, they will need to cooperate. However, the types of data shared by blockchains, network topology, consensus mechanisms, and many other characteristics differ dramatically depending on their intended application. The major issue is that every blockchain is a separate universe, and that creates a problem. For example, if a logistics company relies on a blockchain to track their shipments but cannot communicate with the one they use to make payments, this later causes a problem.
Further, it’s always been a weakness to rely on a source outside the blockchain to provide genuine information when it comes to getting the info from outside the world. And this is where Chainlink crypto emerges as the best solution. It is a decentralised blockchain oracle network that enables smart contracts to securely communicate with real-world data and services outside the blockchain network. To know more about it, let’s get into the detailed information about this important blockchain network below.
Chainlink is a cryptocurrency and technology platform that enables non-blockchain enterprises to connect securely with different blockchain platforms. It is a decentralised oracle network. By "oracles," refers to the external providers who share the work on the network. Further, these oracles allow Chainlink smart contracts to receive real data from external sources, like any kind of API and some other types of external data.
Chainlink is the product of a startup called 'SmartContract'. It was founded in 2017 with the aim of harnessing blockchain technology, mainly smart contracts. The Chainlink team has so far been able to fulfil their vision of providing accurate external data to the blockchain. Chainlink has been designed with the intent to work across any kind of blockchain that possesses smart contract functionality. It does not operate its own blockchain; rather, it is interoperable and runs on multiple blockchains simultaneously.
Chainlink node operators can stake the link as a way of bidding to be the buyer of the data. The operator gets every payout in the form of a LINK token. It is used to incentivize node operators, as owning more tokens gives access to bigger and more rewarding data contracts. If any of the operators break the rules, their LINK tokens will be removed as a result. The value and demand of these tokens are highly dependent on the number of operators that work to safeguard the network. The more the Chainlink platform can be used, the more valuable the LINK token will be.
The reason behind its popularity is that this Chainlink decentralised oracle can connect multiple types of data with various blockchains, which creates many potential applications for Chainlink. It helps to integrate blockchain technology with many industries and business functions.
Chainlink has reached a stable position in this dynamic market with its remarkable service and is gaining a significant lead over its competitors. It seems that investing in Chainlink can return you the best amount; however, the profitability of an investment depends upon your investment goal and the risk that you are capable of taking. Further, one can go with a trading platform like WazirX to buy, trade, or sell Link in USDT markets. Also, to convert link to INR, this platform will assist you in doing so.
The Chainlink network is secured by Proof of Stake (PoS), and this decentralised oracle network is powered and secured by three types of custom-designed smart contracts as well. They are like (i) an aggregation contract, (ii) an order-matching contract, and (iii) a reputation contract.
Chainlink completely solved the oracle problem when the team worked to retrieve and share information from oracles without jeopardizing the security of the blockchain. With Chainlink crypto, there is no need to trust any other sources as the smart contracts run through the Chainlink network Chainlink's network has unrestricted access to resources such as data feeds, traditional bank account payments, and web APIs.
Rea Setia is an passionate writer. She loves to share business tips and her experience about industry.