Chainlink (Link) is a decentralized digital currency platform and oracle network designed to allow a smart contract to achieve its maximum efficiency. Most crypto contracts can only function on a particular blockchain but are unable to communicate with other data feeds from external sources. Therefore, they can only perform with the data within the specific platform.
Chainlink Background Info
That’s where Chainlink enters, bridging the connectivity issue between the cryptocurrency network and the traditional database. Founded by Sergey Nazarov and Steve Ellis in September 2014, the protocol links blockchains to the data feed, events, banking systems, and payment methods of the real world while maintaining the accuracy and security of data. As a result, Chainlink allows the completion and fulfillment of blockchain-based smart contract deals as well as the relay of feeds to and from the blockchain platforms like Bitcoin, Ethereum, and many more.
Chainlink’s first coin was launched in June 2017 and made its way up with other cryptocurrencies. In 2020, the Ethereum-based token became the fifth largest crypto money in terms of market capitalization. In fact, it raised about $32 million.
LINK tokens play a vital role as a fueling agent in the entire process within the network. It can be used as payment for the retrieval of data from real-world data sources and converting them to a format readable by the digital currency network. Additionally, tokens can also be used as deposits made by node operators as stipulated by the contract creator.
As a promising protocol, Chainlink’s price surged to $51.17 on the 2nd of May. Its original trading price was at $11.45 in January. Although it collapsed from $36.8 to $21 on May 19, the Chainlink price has been soaring. Chainlink’s healthy and reliable model has attracted more and more traders and users to their protocol. It teams up with noteworthy giant companies such as Google Cloud, Tezo, and Oracle.