What is chainlink

What is chainlink

Chainlink (LINK) is a cryptocurrency and technology platform that allows non-blockchain businesses to connect to blockchain platforms securely. Chainlink is a piece of middleware that connects blockchain-based smart contracts to external data like baseball scores or market prices. The LINK currency is used to pay Chainlink network operators and to secure smart contract agreements on the network. Sergey Nazarov and Steve Ellis, who co-authored a white paper with Ari Juels in 2017, invented Chainlink. The network debuted in the year 2019. The LINK token is an ERC-20 token, which means it may be used with other Ethereum-based currencies and smart contracts.

It is a blockchain abstraction layer or decentralized oracle network. Chainlink employs blockchain technology to provide safe computations both on and off the blockchain, enabling hybrid smart contracts. Chainlink allows businesses to connect to any of the main blockchain networks, including as Ethereum, Solana, and Terra. The Ethereum platform, which employs the proof of work operating mechanism, hosts the Chainlink blockchain. Chainlink is an open source blockchain project, which means that anybody may examine and contribute to the code.

The Chainlink blockchain supports the secure sharing. Some of the features that Chainlink has are:

-        Support for cross-blockchain, which means that it can connect different blockchain networks to allow the exchange of tokens, messages, and other specific actions.

-        Providing verifiable sources is used in games that require cryptographically secure randomness.

-        Support of decentralized data feeds, data from many sources, that can be securely collected- and processed.

-        Enabled automation in key functions and event-driven tasks for companies.

Chainlink is a decentralized oracle network built on the blockchain that was founded in 2017. Oracles are entities that connect blockchains to external systems, allowing smart contracts to run on blockchain inputs and outputs. While traditional oracles are centralized, Chainlink uses "hybrid smart contracts" to decentralize the process of transferring data on and off blockchains. Chainlink network operators are rewarded with LINK tokens for receiving data from off-chain feeds, converting data into usable forms, and executing off-chain calculations.

The Chainlink oracle network has various applications since it allows blockchains to exchange data with off-chain systems in a decentralized and tamper-resistant manner. Among other things, Chainlink has been used to equitably distribute non-fungible tokens (NFTs), gamify personal savings, and simplify cryptocurrency token supply recalibrations.

Chainlink wants to enhance its support for blockchain settings and make new use cases for hybrid smart contracts possible. Chainlink may provide endless potential to connect blockchain networks with off-chain information because large repositories of data and records are not currently held within blockchains.

The Chainlink network, which now includes over 1,000 projects, secured more than $75 billion in value in 2021. Chainlink has a total quantity of 1 billion tokens, of which about 467 million have been distributed as of February 2022.

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