What is Chainlink?
Chainlink (LINK) is an Ethereum-based token and the native cryptocurrency of the Chainlink platform. Its goal is to connect smart contracts to real world data safely and securely, including events and payments. The Chainlink network features a reliable way to create and manage “tamper-proof inputs and outputs for complex smart contracts on any blockchain.” They provide this service by creating reliable connections to external data that is provably secured from end-to-end. In this way, they realize the idea of the “smart contract” to its greatest extent, making full use of Ethereum’s software to link any blockchain with any other blockchain-related or non-blockchain database or application.
History of Chainlink
The idea for Chainlink, now a subsidiary of smartcontract.com, was first developed in 2017, as it became apparent that there was a large knowledge gap between those experienced in Ethereum smart contracts and other network software engineers. The Chainlink team, comprised of professionals in many different disciplines, is advised by members of the Ethereum development team and those highly experienced with its smart contracts. After a highly successful ICO, LINK was introduced to the cryptocurrency markets in September 2017, and less than 4 months later, it crossed the $400 million market capitalization mark, making it one of the fastest growing cryptocurrency platforms of all time.
How Chainlink Works
Chainlink makes heavy use of Ethereum’s smart contract functionalities. Ethereum’s smart contract system allows Chainlink the ability to provide and execute reliable, highly secured and tamper-proof digital agreements. To assure that a smart contract is reliable, inputs and outputs read by the contract are also made secure. Those responsible for keeping an API connected to the Chainlink Network are known as Chainlink Node Operators and are compensated in LINK for their successful processing of on-chain requests made by the Chainlink network. Currently, Chainlink has complete API connections to the Bitcoin Network and has plans to support the APIs of many other cryptocurrencies in the near future.
Why Should I Buy Chainlink?
As a platform, Chainlink offers several unique advantages over most other cryptocurrency networks. Some of these include:
Connect Smart Contracts to apps & data. Pre-existing Ethereum and non Ethereum-based smart contracts can be safely connected to almost any DApp and access its data as provided by DApp API. Smart contracts can be connected to web applications and widely accepted USD payment processors.
Connect to any external API. Allows for the easy connection of smart contracts to any data source and the APIs which allow for interaction with the data, for any software that has an open-ended API.
Send payments anywhere. Payments can be sent from personalized smart contracts to bank accounts and digital payment networks.
End-to-End reliability for Smart Contracts. Chainlink’s smart contract creation and management system allows for the creation of completely secure smart contracts that work as intended and cannot be manipulated or interrupted.
Connect with other chains. Allows the use of smart contracts to create secure cross-chain connections between the contract and any external public or private blockchain.
Linked API on demand. Anybody can request that their API and databases be linked to Ethereum and the Chainlink network by submitting a request via the project’s homepage.