Contents<\/p>
- 1<\/span> What Chainlink is all About?<\/a><\/li>
- 2<\/span> How Chainlink Works?<\/a><\/li>
- 3<\/span> Is Chainlink Connected with DeFi?<\/a><\/li>
- 4<\/span> What Makes Chainlink Different from Competitors?<\/a><\/li>
- 5<\/span> Chainlink Use Cases<\/a><\/li>
- 6<\/span> How Chainlink\u2019s Native Token Works?<\/a><\/li>
- 7<\/span> Trusted Execution Environments (TEEs)<\/a><\/li>
- 8<\/span> Chainlink Development<\/a><\/li>
- 9<\/span> What is Meant by Chainlink Marines?<\/a><\/li>
- 10<\/span> Chainlink Community<\/a><\/li>
- 11<\/span> Chainlink Partnerships<\/a><\/li>
- 12<\/span> Chainlink (LINK) History<\/a><\/li>
- 13<\/span> Is Chainlink Good for Investing and How You Can Mine it?<\/a><\/li>
- 14<\/span> Conclusion<\/a><\/li><\/ul><\/div>\n
What Chainlink is all About?<\/span><\/h2>\n
Chainlink is a decentralized oracle platform that connects smart contracts with external data. When decentralized applications were compromised easily, Chainlink developed a secure wall to protect them from malicious attacks.<\/p>\n
The platform proves its value when the blockchain receives the data. At that point, the data is prone to attacks, and it can be manipulated or changed.<\/p>\n
To keep the damage to a minimum, Chainlink highlights preferences in its official whitepaper. These priorities are following:<\/p>\n
- \n
- Data source distribution<\/li>\n
- Trusted hardware use<\/li>\n
- Oracles distribution<\/li>\n<\/ul>\n
LINK prefers security above all, and that\u2019s why they acquired a startup dubbed TownCrier. The startup secures data feeds and oracles by using its hardware called \u201ctrusted-execution environments.\u201d<\/p>\n
Such external data sources include different external data feeds, Internet-connected systems, and APIs without compromising decentralization and security. The coin is backed by Ethereum, which users pay for using oracle service on the platform.<\/p>\n
To understand Chainlink\u2019s decentralization, you need to know about the centralized oracle system. It\u2019s a single source that can represent numerous difficulties.<\/p>\n
If it provides inaccurate data, then all the systems relying on it would abruptly fail. Chainlink<\/a> develops a cluster of nodes that receive and transfer information to blockchain in a decentralized and secure way.<\/p>\n
Buy Chainlink with Our Top Broker<\/span><\/a><\/div>\nHow Chainlink Works?<\/span><\/h2>\n
As said above, Chainlink implements a network of nodes to ensure the information given to smart contracts is secure and entirely reliable. For instance, a smart contract needs real-world data, and it requests it. LINK registers the need and sends it to the Chainlink nodes network to bid on the request.<\/p>\n
After submitting the request, LINK validates the data from numerous sources, and that\u2019s what makes this process reliable. The protocol spots trustworthy sources with a high accuracy rate because of its internal reputation function. Such a function increases the possibility of higher accuracy and prevents smart contracts from getting attacked.<\/p>\n
Now you\u2019ll be thinking about what it has to with Chainlink? However, smart contracts that request need for information pay node operators in LINK, the native token of Chainlink for their services. The node operators set the price depending upon the market value and conditions of that data.<\/p>\n
Moreover, to ensure long-term commitment and trust towards the project, node operators stake on the network. Smart contracts incentivize Chainlink node operators to perform reliably rather than acting as harmful for the platform<\/p>\n
Is Chainlink Connected with DeFi?<\/span><\/h2>\n
The need for high-performing oracle service has been on the rise as Decentralized Finance (DeFi) picked up the pace. Almost every project uses smart contracts and faces the need for external data to run the task properly. The DeFi projects are left vulnerable to attack with the centralized oracle services.<\/p>\n
It causes a variety of attacks that include flash loan attacks by manipulating oracles. Previously, we\u2019ve had such attacks, and they\u2019ll keep reoccurring if the centralized oracles remain the same.<\/p>\n
These days, people tend to believe that Chainlink can solve such problems, yet, it might not be correct. The technology of Chainlink can pose potential threats and risks to the projects operating on the same oracle services.<\/p>\n
Chainlink hosts a good amount of projects, and they all will probably face setbacks if LINK does not perform as expected. It might seem highly unlikely as Chainlink has been delivering on its potential for years and has no chance of failure.<\/p>\n
However, back in 2020, Chainlink node operators experienced an attack in which they lost over 700 Ethereum from their respective wallets.<\/p>\n
The Chainlink team abruptly solved the matter, but the attack shows that not all systems are completely secured, and they are vulnerable to attack. Is Chainlink Different from Other oracle service providers? Well, let\u2019s find out what makes Chainlink stand apart from regular service providers.<\/p>\n
What Makes Chainlink Different from Competitors?<\/span><\/h2>\n
The LINK coin is known for its use cases, and it has a list of reputable companies and digital assets using Chainlink\u2019s services. The list includes leading DeFi tokens like Polkadot, Synthetix, from the crypto-community, and big guns such as SWIFT and Google from the traditional business space.<\/p>\n
You can take SWIFT as an example; Chainlink creates a continuous interaction between the traditional business space and crypto world for SWIFT.<\/p>\n
The LINK enables SWIFT to send real-world currency into a blockchain. Then showing the proof of receiving the money could allow them to revert it to SWIFT through LINK. Now let\u2019s try to understand what Chainlink\u2019s native token is and all about the supply and issuance.<\/p>\n
Chainlink Use Cases<\/strong><\/span><\/h2>\n
The partnership between Chainlink and the SWIFT banking network spurs hugely to the development of Chainlink. With SWIFT as a giant in the global network finance industry, succeeding with them will invariably pave the way for collaborations with others in the finance industry. Such possible collaborations could be with payment processors, insurance outfits, or banks.<\/p>\n
There\u2019s a development of SWIFT Smart Oracle through the assistance of Chainlink. This\u2019s a great breakthrough in the partnership of the SWIFT with chainlink. Also, when it comes to blockchain oracles, Chainlink is at the forefront with little competition. Others that are researching the development of blockchain oracle are way behind Chainlink.<\/p>\n
The Chainlink token, the LINK, has experienced a tremendous breakthrough from 2018 till date, where its upward surge in price is over 400% compared to where it started in 2018. Despite being passing through pressure in the cryptocurrency market in 2018, the LINK went to the bottom.<\/p>\n
However, the launching of Chainlink on the Ethereum main net marked the beginning of the resurrection of the LINK. This has drawn more investors and traders to have more interest in this token. Hence, the LINK\u2019s price has moved upwards to where it is today.<\/p>\n
How Chainlink\u2019s Native Token Works?<\/span><\/h2>\n
The token LINK is used by data purchasers and buyers that pay for translated data into the blockchain. Such service prices are determined by data sellers or oracles while bidding. LINK is an ERC677 token that operates on the ERC-20 token, allowing the token to comprehend the data payload.<\/p>\n
Despite earning the token as a data provider, you can invest in LINK by clicking on the button given below. Although Chainlink used to function on Ethereum\u2019s blockchain, other blockchains like Hyperledger and Bitcoin cater to LINK\u2019s oracle services.<\/p>\n
- 2<\/span> How Chainlink Works?<\/a><\/li>
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