Learn about Chainlink
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Chainlink: what is it, how does it work and what is the price of LINK
It is essential to analyze the historical price of Chainlink and its LINK token to understand the characteristics of the crypto-asset and its behavior in the present and in the future.
What is Chainlink (LINK)?
Chainlink (LINK) is a well-known decentralized oracle project that runs on top of the Ethereum blockchain. It is one of the projects that has become more relevant in the world of decentralized finance (DEFI) because it has become the main interconnection bridge between the real world, DApps and the DeFi ecosystem in this blockchain.
In addition, it makes it possible to connect different strings to each other. Chainlink makes up for the shortcomings of many blockchains and plays an important role in connecting you to external systems.
Chainlink History and Origins
The history of Chainlink dates back to September 2014 when Steve Ellis, Ari Juels, and Sergey Nazarov started their SmartContract.com project. The work came to light three years later, in September 2017 when these researchers released the Chainlink whitepaper. The initiative caught the attention of investors who, at the height of the ICO, injected 32 million dollars for its financing.
On June 1, 2019, the main Chainlink network was successfully and officially launched and with it one of the main pillars in the operation of today's decentralized finance (DeFi) protocols.
The idea behind Chainlink is to connect smart contracts across blockchains, allowing them access to key off-chain resources, such as bank account payments, data feeds, or APIs. Applications, APIs.
The interest of developers is focused on making smart contracts capable of communicating with external systems, in order to make them useful in the business world. It is one more case that demonstrates how the use of this technology creates perfect interactions between the traditional world and the crypto world.
On the other hand, Link, the native cryptocurrency of the decentralized oracle network, is used to pay node operators and can also be exchanged for other tokens through an exchange.
To date, Chainlink's capitalization is close to $20 billion and the price of the token has almost reached $50. In just 12 months, the value of the token has increased by +1,000%: this is why LINK is one of the best cryptocurrencies to buy in 2021.
How does Chainlink work?
An important part of how Chainlink works is its Link token. It is an ERC-20 token, that is, it works on the Ethereum network. First of all, this token serves as an incentive and compensation for the work that node operators do.
At the same time, a holder of Link tokens can go to a broker - such as Satoshi Tango - and exchange these tokens for other tokens, cryptocurrencies or fiat. Also, as in any other cryptocurrency, you can HODL these tokens and bet on their price rise, something quite frequent lately due to the growth that said token has had.
Smart Contracts There
Chainlinkare multiple elements that are responsible for periodically ensuring that the information is correct and that each node will be analyzed in a fair and transparent manner. To do this, each task is executed by a series of smart contracts.
Smart contracts or smart contracts are an agreement between two or more parties, it is an environment where what can be done is defined, how it can be done and what happens if something is not done.
So, if a client makes a request for information to Chainlink, this protocol can take the request and serve it automatically using the resources that are within the network.
But additionally, the client can make a data request to a custom group of nodes, from which it will obtain the response and it can be verified. All this without neglecting the verification of data by the Chainlink network, thereby guaranteeing the reliability of the information received from said nodes.
Operators Chainlink node operators participate within decentralized oracle networks, allowing external data to be obtained safely and reliably.
Additionally, they operate on oracle infrastructure so that the smart contracts on each blockchain have access to the real-world data they need to run properly.
The LINK token is an ERC-20, that is, it works on the Ethereum network. LINK is in charge of serving as an incentive for node operators to do a good job.
With each installed node and correctly attended information request, the nodes and their operators accumulate LINK tokens that are delivered in compensation for their work.
Advantages and disadvantages of Chainlink
ike all cryptocurrencies, Chainlink has advantages and disadvantages. They may have more or less relevance depending on the objectives and purposes of each investor. The pros and cons are listed below.
Advantages of the LINK cryptocurrency
- Its operation is based on the accuracy of the data obtained, its security and its complete decentralization.
- The protocol was developed as a middleware, this factor allows you to access smart contracts, debug them and access external systems.
- Work as a decentralized oracle.
- Thanks to its extensible structure it is possible to access and provide almost all kinds of information.
- It allows a rapid overcrowding of the network of nodes thanks to the simplicity and simplicity of the installation of its Chainlink nodes.
- Its decentralized structure allows anyone who has a node within the network to provide the services requested by users and earn profits in the process.
- The software is completely decentralized and can be verified at any stage of its operation.
Disadvantages of the LINK cryptocurrency
- The protocol does not guarantee the privacy of users.
- Present Regulatory Risks
Chainlink was adopted by major projects and companies with international reach, giving it an important vote of confidence. Furthermore, Chailink and its token managed to position themselves in the market by having a special performance based on oracles.
It is important to highlight that within the altcoin ecosystem, Chainlink presents a relative stability compared to the rest of the assets. Although the volatility of the cryptocurrency always remains.
Chainlink Argentina - Frequently Asked Questions
What is Chainlink currency?
Chainlink (LINK) is a token that is based on Ethereum. Chainlink makes smart contracts on Ethereum to securely connect with external data sources.
What does Chainlink do?
Chainlink connects smart contracts across blockchains, allowing them access to key off-chain
How many Chainlink coins are there?
Chainlink has over 467 million LINK coins in circulation and a maximum supply of 1 billion coins.
How much could Chainlink be worth?
Chainlink's value is tied to market fluctuations. However, it presents multiple innovations that are revolutionary.
What is the ChainLink network?
The ChainLink network is built on top of Ethereum, its token is called LINK and its maximum number is predetermined.
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