The purpose of this blockchain was initially to fill the gap between the blockchains of the most important cryptocurrencies and the legal system by bridging this gap so that both economies can interact.
CHAINLINK, as its name indicates, is a blockchain project that seeks to build bridges between payment services such as Visa and Paypal, and global banks and blockchains such as Bitcoin and Etherium. Although the technology was created in 2015, it was in 2017 when LINK, its native token was offered in an ICO. The LINK token is an ERC-20 token based on Etherium Blockchain.
"The native token of Chainlink blockchain is LINK, an ERC-20 Etherium-based token."
The purpose of this blockchain was initially to fill the gap between the blockchains of the most important cryptocurrencies and the legal system by bridging this gap so that both economies can interact. This blockchain is prepared to process Oracle data with parameters are established in a Smart Contract according to a Service Level Agreement (SLA).
An example of a bridge between conventional payment systems and the blockchain created by Chainlink is the ability to create a SWIFT to operate in it. In this case we are talking about the SWIFT Smart Oracle. This is about combining real-life data with blockchain technology.
What is an Oracle? (Not to be confused with the professional software called Oracle.)
An Oracle is a trustless system (that has no authority to manage it) that offers a secure connection between off-chain data and any operation executed in a blockchain. It is a programmable interface for linking external data with blockchains in a specific blockchain.
We can also say that Chainlink can act not only as a bridge between the blockchain and external databases, but can also interlink many blockchains to create interoperability and connectivity between them and exploit their synergies.
A very interesting fact is the collaboration agreement between ChainLink and Binance with the purpose of managing the expansion of a decentralized financial market using Chainlink's Data Oracles.
Link token performance in the market.
As we will be seen below, the ChainLink token has managed to create sustainable growth in its price and network by successfully linking blockchains to real-world data.
Respcting the Link price showed in CoinMarketCap, we find that the Link token has been climbing positions especially in the last weeks when it has had a considerable increase in value, a 600% increase in the last 90 days has been reached, getting to number 5 in the CoinMarketCap ranking. This explains a quick growth of its network. This year is by far the best year for Link token since it was issued in 2017.
The token has 35% of its total supply in circulation, with a capitalization of more than 6.5 billion dollars. Another 35% of its total supply will be distributed among the network nodes and the remaining 30% will be retained by the developers for future applications. At the time of this article we have a market price of $18.71 with a 11% revaluation from the previous day.Fuente: CoinMarketCap
This token is available on many exchanges including Binance, Coinbase Pro, Kraken, Huobi Global and OKEx and can be purchased using USDT (Tether), BTC, ETH and even fiat currencies such as USD and Euro.
In previous years it had increased its price gently and continuously but it has been throughout this year and in recent weeks when a great growth has taken place because the market has seen in this token a great potential.
Talking about ChainLink technology, its strategic partner is the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which is the system that approves and denies any transaction carried out in the world to transmit data and therefore monetary funds. This indicates the enormous potential of this technology by having such vital partners for international finance. SWIFT's partners such as VISA, MasterCard and American Express are potential ChainLink partners too.
Within the crypto world ChainLink has other partners such as Accord Project, Bodhi launched in Qtum and Zepelin_os. The more partners Chainlink has, the stronger its network will be, since it can link them all in a multi-directional way, the possibilities are endless and the sky is the limit.
Even future blockchains can be connected to the ChainLink network from the beginning to enable better developments and applications.
But even ChainLink has acquired projects like Town Crier in 2018 to expand its Decentralized Oracle network, a project developed by Cornell University to ensure the privacy and security of Smart Contracts. This project uses TEEs (Trusted Execution Environments), that is, reliable execution environments with decentralized computing to provide a high level of security and reliability for network node operators. It was a step forward to obtain a great resource for ChainLink.
"The goal of ChainLink is to enable Smart Contracts to be connected to external inputs/outputs, providing process reliability and extremely useful functions. This increases the value of these Smart Contracts".
The main points that summarise the Chainlink functioning are therefore as follows:
- Node operators are compensated with LINK tokens when they provide services and off-chain data, this would be the way to mine this token.
- Chainlink has partnered with the SWIFT network to integrate the blockchain into international payment systems.
- The Chainlink mainnet, launched in 2019, is based on high scalability and interconnectivity on the one hand, and high security on the other hand to implement more and more Smart Contracts and DApps (Decentralized Applications) that can use huge external input/output resources to expand their data and fund operations.
The future of Smart Contract development that Chainlink seeks to create is one in which Smart Contracts can be generated as quickly and efficiently as web applications, so that the developers of these Smart Contracts would have the same easiness of getting the desired inputs/outputs as web application developers and for that purpose it is necessary to build a “link” as an efficient and secure interface to connect these two technologies.