Things to Know About ChainLink Cryptocurrency
The platform for ChainLink cryptocurrency was developed
to establish a relationship
between external data and smart contracts by using
The project was initiated for the purpose of popularizing
and increasing the
use of smart contracts along with reducing the risk of
errors and inaccuracies
while informing about it.
The purpose of creating this crypto and its features
are briefly discussed
in this write-up.
Working of ChainLink
The system of ChainLink cryptocurrency is based
on its network and its token, Link.
The developers of this crypto wanted to increase
the chances to use smart contracts
in their business by developing platforms like
The decentralized network of ChainLink includes
nodes to sell and distribute data.
The network of ChainLink can be divided into
two parts – Blockchain and off-chain.
In order to provide normal services to its users
both of these parts interact with each other.
According to the smart contracts the Blockchain
part of this platform filters oracles and the
oracle nodes linked with the network of Ethereum
contained in its off-chain part will collect
data from external sources independently.
For instance, a node that belongs to a stock exchange
can provide real-time information about
trading status to ChainLink which in turn will include
it into a single system of oracles of larger
size to increase the accuracy of the data.
Today the network provided by ChainLink is
compatible with various Blockchain platforms
including Ethereum, Hyperledger and Bitcoin
which can increase in the future.
The developers of ChainLink cryptocurrency are
also planning to use several
Blockchain platforms to launch a single contract.
Feature of ChainLink
The reliability of the data provided by oracles
can be suspicious as they are provided by the services
controlled by centralised organisations which
do not follow the rules of consensus mechanism
This problem has been solved by the developers
of ChainLink cryptocurrency by using the
smart contracts to create a decentralized network
of oracles to interact with
external sources safely and reliably.
It will allow the owner of an API data channel
to convey information to the network
of ChainLink and get reward in its LINK tokens.
It will prevent the reception of incorrect information
about the price of the stock to the
Pros and cons of ChainLink cryptocurrency
- Though the system of ChainLink works on
smart contracts and the system
of Blockchain technology, it is still a decentralized network.
- Reliability and authenticity of the information from external
- To ensure the reliability and safety of the operations
- The problems of only a small segment are solved by
ChainLink Blockchain cryptocurrency.
- It can obstruct the expansion of this project in the future.
- It will be impossible to refund the funds once transferred,
in case a transaction has been made by mistake
- The chances of malfunctioning of the system can increase
with the increase in the number of financial transactions.
The increasing price of LINK, cryptocurrency of ChainLink,
has proved that the Blockchain
system of this platform has lots of potentials to provide a
safe and fast platform for financial
transactions by using the system of oracles and smart contracts.
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