What is Chainlink


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Chainlink is a project that seeks to solve a fundamental problem in the world of cryptography: a secure and reliable connection between data within the blockchain and offline data.

For many years we have known blockchains that have always worked on their own, such as Bitcoin, Ethereum, Litecoin or Ripple.

This is not because of selfish networks, but because there have not yet been known ways to connect these blockchains to real data (off-grid).

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This compatibility is what Chainlink brings to the world of cryptocurrencies. Its main goal is to link the blockchain with external data to improve its performance.

In short, Chainlink is a decentralized oracle network that solves the problem of interaction by creating a safe and reliable solution.

This decentralized network of oracles consists of buyers and data providers. Buyers demand data, and suppliers safely offer it. Just like buying cryptocurrency in Bitnovo, however, instead of cryptocurrencies traded data.

Thus, buyers choose the data that they need, and suppliers and offer such data. Suppliers must allocate a certain share of LINK tokens when they make an offer that they may lose in the event of misconduct. When suppliers are finally selected, their task is to give the right answers along the chain.

Chainlink uses an oracle protocols system to aggregate and weigh the data provided. If all goes well, suppliers are paid and all parties are happy.

At this point, it’s important to make a clarification: it’s not the same as Chainlink and LINK. Chainlink is a project created by smartcontract Chainlink Limited. LINK is a cryptocurrency introduced by the same company for economic and transactional purposes.

Chainlink was founded by current CEO Sergey Nazarov and current CTO Steve Ellis in 2017. The launch raised $32 million. In the original currency proposal (ICO), which resulted in the created of 1 billion LINK tokens.

In November 2018, Chainlink acquired TownCrier, an authenticated data source for smart contracts.

In May 2019, Chainlink launches the main Ethereum network and demonstrates growth, making it one of the cryptocurrencies, the price of which has increased the most in a year.

Chainlink is a very interesting project that has demonstrated phenomenal progress and community recognition.

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