What Is Chainlink?

Image Credit: Pikiran Rakyat

Chainlink was founded in 2017 by Sergey Nazarov and Steve Ellis. The company's initial goal was to create a decentralized oracle network to solve the problem of accessing off-chain data for smart contracts on the blockchain.

The project's whitepaper, published in September 2017, outlined the need for a decentralized oracle network and proposed the creation of a network that would use smart contracts to incentivize nodes to provide accurate data.

In September 2017, the Chainlink ICO (Initial Coin Offering) was launched, raising $32 million in less than an hour. The ICO was one of the most successful of that year, and the proceeds were used to fund the development of the network.

The development of the Chainlink network progressed quickly, and in June 2019, the team announced the launch of Chainlink Mainnet. The mainnet enabled the use of Chainlink oracles on the Ethereum blockchain, allowing smart contracts to access off-chain data in a decentralized and secure manner.

Since then, Chainlink has continued to grow and expand its network. In 2020, Chainlink was integrated into several blockchain projects, including Polkadot, Hedera Hashgraph, and Binance Smart Chain. The company also announced partnerships with various organizations, including Google Cloud, SWIFT, and the World Economic Forum.

As of 2023, Chainlink remains one of the most popular oracle networks in the blockchain space, with a market capitalization of over $18 billion. The network continues to expand its capabilities, with the development of features such as decentralized identity and verifiable randomness.

What Is Chainlink?

Chainlink is a decentralized oracle network that aims to bridge the gap between blockchain technology and real-world applications. In simple terms, it provides a way to connect smart contracts on a blockchain to external data sources and APIs.

The concept of a decentralized oracle network is an innovative solution to the problem of accessing off-chain data in a trustless and secure manner. Oracles are third-party services that can retrieve data from external sources, such as APIs or other blockchains, and provide it to smart contracts. However, the problem with relying on a single centralized oracle is that it introduces a single point of failure and can create vulnerabilities in the system.

Chainlink solves this problem by providing a decentralized network of oracles that can retrieve data from multiple sources and securely deliver it to smart contracts. The network operates on a token-based system, where users can purchase Chainlink tokens (LINK) to pay for the use of the network's services.

Chainlink has gained popularity in the blockchain and cryptocurrency space due to its unique approach to solving the oracle problem. It has been integrated into various blockchain projects, including Ethereum, Polkadot, and Binance Smart Chain.

The benefits of using Chainlink include increased security, reliability, and scalability for smart contracts. The network also provides flexibility in terms of data sources, allowing developers to access a wide range of data without having to rely on a single provider.

In summary, Chainlink is a decentralized oracle network that provides a secure and reliable way to connect smart contracts to external data sources. It has gained popularity in the blockchain space due to its innovative approach to solving the oracle problem and has been integrated into various blockchain projects.

Mining LINK

Unlike many other cryptocurrencies, Chainlink (LINK) is not a mineable cryptocurrency. The total supply of LINK was created at the time of its launch, and no new LINK can be created through mining or any other process.

The initial supply of LINK was 1 billion tokens, with around 350 million LINK sold during the initial coin offering (ICO) in 2017. The remaining tokens were allocated for the company's team, advisors, and future development.

The distribution of the LINK tokens has been designed to incentivize node operators to provide accurate data and maintain the security of the network. Node operators are required to stake a certain amount of LINK to participate in the network, and they can earn LINK tokens as a reward for providing accurate data.

Therefore, while there is no mining involved in the creation of new LINK tokens, users can earn LINK by participating in the network as a node operator. This system is designed to ensure the accuracy and reliability of the Chainlink oracle network, as node operators have a financial incentive to provide accurate and secure data.

In summary, Chainlink (LINK) is not a mineable cryptocurrency, and its total supply was created at the time of its launch. Node operators can earn LINK tokens as a reward for participating in the network, but no new LINK tokens can be created through mining or any other process.

How To Buy LINK

If you're interested in buying Chainlink (LINK), here are the steps you can follow:

• Choose a cryptocurrency exchange: There are many cryptocurrency exchanges that offer LINK trading, such as Binance, Coinbase, Kraken, and Bitfinex. Choose an exchange that is available in your country, has a good reputation, and offers LINK trading pairs.
• Create an account: Once you've chosen an exchange, you'll need to create an account by providing some basic personal information and verifying your identity. This process may vary depending on the exchange you choose.
• Deposit funds: After creating an account, you'll need to deposit funds to buy LINK. Most exchanges accept deposits in fiat currencies, such as USD or EUR, as well as in other cryptocurrencies, such as Bitcoin (BTC) or Ethereum (ETH).
• Buy LINK: Once your funds have been deposited, you can place an order to buy LINK. On most exchanges, you can buy LINK using either fiat currency or other cryptocurrencies. Simply select the LINK trading pair, enter the amount of LINK you want to buy, and submit your order.
• Withdraw LINK: Once you've bought LINK, you can withdraw it to your personal wallet for safekeeping. Many exchanges also offer their own wallet services, but it's generally recommended to store your cryptocurrency in a personal wallet to maintain control over your private keys.

It's important to note that the process of buying and selling cryptocurrencies can be risky and volatile, and prices can fluctuate rapidly. It's important to do your own research and invest only what you can afford to lose.

Notable Happenings

Here are some notable happenings related to Chainlink (LINK):

• Chainlink Mainnet Launch: In June 2019, Chainlink announced the launch of its mainnet, which enabled the use of Chainlink oracles on the Ethereum blockchain. This was a major milestone for the project, as it allowed smart contracts to access off-chain data in a decentralized and secure manner.
• Partnerships with Google, SWIFT, and Others: Chainlink has announced partnerships with a number of major organizations, including Google Cloud, SWIFT, and the World Economic Forum. These partnerships are intended to help advance the development and adoption of blockchain technology, particularly in the area of decentralized oracle networks.
• Integration with Other Blockchains: In 2020, Chainlink was integrated into several other blockchain projects, including Polkadot, Hedera Hashgraph, and Binance Smart Chain. This expansion has helped to increase the reach and adoption of the Chainlink network.
• Integration with DeFi: Chainlink has become a popular oracle solution for decentralized finance (DeFi) applications, which require accurate and reliable price feeds for their financial instruments. As of 2023, Chainlink is used by many of the top DeFi protocols, including Aave, Compound, and Uniswap.
• Acquisitions: In February 2021, Chainlink announced the acquisition of DECO from Cornell University. DECO is a framework for building privacy-preserving oracle networks, which will help to enhance the security and privacy of the Chainlink network.
• Verifiable Randomness Function (VRF): In October 2020, Chainlink announced the launch of its Verifiable Randomness Function (VRF), which is designed to provide secure and verifiable sources of randomness for blockchain applications. The VRF is expected to have many use cases, including in the areas of gaming, lotteries, and other applications that require random number generation.

Overall, Chainlink has continued to grow and expand its capabilities, with a focus on improving the security, reliability, and usability of decentralized oracle networks. As of 2023, Chainlink remains one of the most popular and widely-used oracle solutions in the blockchain space.