Chainlink - The information layer of crypto

Chainlink (LINK)

What is Chainlink?

Decentralized applications (Dapps), especially decentralized finance (DeFi) protocols, often need a provider of real-time data to accurately operate. However, this information typically comes from centralized entities or untrustworthy sources. To solve this, Chainlink provides an oracle network where DApps can obtain verified data validated by node operators who get paid for performing this task.

The ecosystem is comprised of three main actors: data providers, node operators, and DApps. Data providers offer their information, which is then verified by node operators and, if it is validated, is then sent to the DApps.

Why does Chainlink have value?

Chainlink has been widely adopted in the last year thanks to its innovative model. While DApps are decentralized by nature, the information they receive could still be tampered with, which would have a negative impact on its operations. By decentralizing the validation of the data, providers are encouraged to deliver correct information, and validators are incentivized to reject false data.

Chainlink as an oracle verifies data for most of the largest players in crypto including CoinGecko, Binance, Aave, Compound, and more.

What are the Pros of Chainlink?

● Fully decentralized.

● Anyone can participate as a node since the technical requirements are minimal.

● The development team is constantly improving the network and making alliances with other projects to push the adoption.

● They company and token have a rabid fanbase.

What are the Cons of Chainlink?

● Potentially using Chainlink could compromise the privacy of the DApps

What are LINK’s tokenomics?

The maximum supply of LINK tokens is capped at 1 billion. 35% of it will be rewarded to node operators; 35% were sold during ICO and other public sales. The remaining 30% is kept by the founding company to fund the development of the network.

Node operators must stake LINK in order to validate transactions, and they will get paid in LINK according to the usage of their node.

Who founded Chainlink?

Sergey Nazarov, Steve Ellis, and Ari Jules published the first whitepaper in September 2017.

Who are Chainlink’s investor’s?

The Chainlink team has conducted two sale rounds, including an Initial Coin Offering. The investors are Andreas Schwartz, George Burke, Richard Dulude, and firms Fundamental Labs, Limitless Crypto Investments, and Nirvana Capital.

Concise Crypto Grade:

A :Chainlink is one of the most widely used ‘infrastructure’ tools in all of crypto. A variety of Dapps, exchanges, DeFi protocols, and crypto websites need verifiable decentralized data in order to operate. Chainlink fills that role nicely. The organization has been around for nearly 5 years which is a long time in this, still young and growing industry. The entire crypto space wouldn’t be where it’s at now without the important technology that Chainlink provides and for that we give them the hard-to-get ‘A’ grade. 

Where can I buy LINK?

Binance, Coinbase, Huobi, KuCoin, Kraken

What ecosystem does Chainlink run on?

Ethereum