[{"category":{"name":"BitScreener Exclusive","exported_url":"bitscreener-exclusive"},"id":"d880b649-a10f-42cc-b2c1-5b552ee42f67","updated_at":"2022-06-11T11:39:00+00:00","account":{"firstName":"Mason","lastName":"Thompson"},"description":"Born as a decentralized oracle network, Chainlink has won the trust of blockchain communities in creating a reliable middleware between systems inside and outside the blockchain. Let’s take a deep dive into Chainlink (LINK)!","sapo":"Born as a decentralized oracle network, Chainlink has won the trust of blockchain communities in creating a reliable middleware between systems inside and outside the blockchain. Let’s take a deep dive into Chainlink (LINK)!","title":"Chainlink (LINK): The King of Oracles","content":"

What is Chainlink?

Chainlink is the decentralized oracle network that transforms off-chain data to on-chain format, thereby narrowing the gap between the isolated block-chain and the real-world data.

Chainlink increases its potential capabilities by fostering access to real-world data and off-chain computation while preserving the guarantees of security and reliability in blockchain technology.

Chainlink allows users to connect to any existing API by attaching smart contracts to users' existing applications. Chainlink features a tamper-proof network, stable connection to any API, time-tested Oracle solutions, and transparent oracle computation.

To accomplish its functional objective, Chainlink has been designed with modularity in mind with upgradable systems so that different components can be replaced as advanced techniques and competing implementations arise.

Chainlink assists the process of building scalable and externally-connected dApps on several blockchains and layer-2 networks by providing smart contract developers with the oracle infrastructure and tooling.

About Chainlink (LINK) token

Released to the market at the end of 2017 through an ICO and based on the Ethereum network, Chainlink (Symbol: LINK) is the native utility token of the entire Chainlink ecosystem.

LINK token is used in the Chainlink network with the following utilities:

To compensate Chainlink Node operators for the retrieving data from external data sources
To incentivize the accuracy of on-chain and off-chain data
To maintain the stability of the contracts
To reward nodes for their work in validating transactions

How Chainlink works

Chainlink focuses on solving problems of Smart Contract connection and centralized Oracles, specifically:

Smart Contract connection: Chainlink helps to enhance the ability to interact with resources outside Node Network or blockchain where smart contracts are implemented, thereby strengthening Smart Contract utility.
Centralized Oracles: Chainlink aims to handle the challenges of centralized Oracles – an agent delivering information without access to real-world events, leading to the influence on Smart Contract security.

As a bridge between on-chain data and off-chain resources, Chainlink is comprised of two major components working in conjunction:

On-chain infrastructure includes Oracles that deal with users' off-chain data usage requests and send them to suitable smart contracts. There are three contracts matched with Oracles:
- Reputation contract
- Order-matching contract, and
- Aggregating contract.
Off-chain infrastructure includes Oracles outside the blockchain connected to the Ethereum network. ChainLink Core is responsible for processing the data and transferring it to on-chain Oracles. Off-chain nodes will be rewarded with LINK tokens.

Features of Chainlink

Chainlink boasts some prominent features, including:

Backing decentralized data feeds of data from various sources for hybrid smart contracts;
Providing verifiable sources of randomness for secure applications via Chainlink;
Encouraging automation with key functions and tasks for enterprises;
Supporting cross-blockchain interoperability of messages, tokens, and specific actions.

Besides, Chainlink is making a determined attempt to generate the tremendous advances in seven key areas:

Hybrid smart contracts: Proposing an effective framework for expanding smart contract credentials by securely connecting on-chain and off-chain computing data.
Reducing the complexity: Presenting functionalities to complex underlying protocols and system barriers.
Scaling: Ensuring the low latencies and throughputs of oracle services.
Confidentiality: Protecting sensitive data from external attack by blockchains’ innate transparency.
Order-fairness for transactions: Assisting transaction sequences and preventing interruption for end-users.
Trust-minimization: Forming a secure layer of smart contracts and other oracle-dependent systems.
Incentive-based security: Designing and deploying mechanisms that ensure nodes in DONs have strong economic incentives.

Who is behind Chainlink?

Team

Launched in 2017, Chainlink was created by Sergey Nazarov and Steve Ellis who co-authored Chainlink’s whitepaper with Ari Juels, an advisor to the company.

Partners

Chainlink has been working partnerships with more than 60 organizations in different areas, including decentralized legal system (Accord and OpenLaw), decentralized web (Web3 and Polkadot), decentralized transport and logistics (Morpheus), and decentralized finance (SWIFT and Market Protocol).

In 2019, Chainlink officially announced a new project with SWIFT – the world's leading multi-bank payment system.

In June 2019, Chainlink cooperated with the technology giant Google to access data on Google Cloud – the world's largest cloud data warehouse.

Outlook on Chainlink (LINK)

Chainlink’s vision is to become the best connector between blockchain technology and the real world, aiming to evolve into a trusted and secure decentralized Oracle solution.

Over the past few days, LINK has presented a brighter prospect with a rally of 30%, and at the time of writing, LINK ranks as the 23nd largest cryptocurrency by market capitalization, proving itself as a good investment in the long term.

Explore all the trending topics and hottest news in the crypto market with our Blogchain.

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Chainlink (LINK): The King of Oracles

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