Chainlink (LINK) Overview
Let’s learn What exactly is Chainlink? What is the objective of Chainlink? Who established chainlink? How does chainlink work? How good are the economics of Chainlink? and much more.
!! I am not an expert on the subject. Please conduct your own study on how to research a coin and make your own decisions. In this sense, I accept no responsibility. This is NOT a financial advice !!
What Chainlink aims?
Chainlink intends to build a network in which data providers, sometimes known as oracles, are financially rewarded for providing accurate and reliable data to a blockchain. Oracles power Chainlik. Oracle is a piece of software that functions as an intermediate in the data flow between smart contracts and the actual world.[1]
Chainlink is constantly adding new features to the project in order to improve it. [5]
What is Chainlink?
Chainlik is a 2017 decentralized network of oracles that provides data from offchain resources to onchain resources and vice versa. Chainlik enables smart contracts to securely access real-world data that exists outside of the blockchain.[1]
How Chainlink works?
Chainlink eliminates dubious middlemen such as salespeople and estate agents who receive commissions and instead places code in their place. [1] Nodes enter trusted data into the chainlink. Nodes are those who lock their currency in order to receive a charge.[1]
When someone uploads data to the chain, such as weather, they request a contract and begin the process. After receiving the request contract, the chainlink algorithm will register it as an event and create a new matching smart contract known as a chainlink service level agreement (SLA) that allows access to the blockchain. The SLA will generate three subcontracts: Reputation Contract, Order-matching Contract, and Aggregation Contract. [1]
Reputation Contract
The reputation contract assesses an oracle’s track record to establish its performance history and validity, as well as removing a large number of untrustworthy nodes.[1]
Order-matching Contract
The Order-matching contract transmits the query or question of the request contract to trustworthy nodes and then examines their bids from the list that it receives before selecting the appropriate amount and kind of nodes to address the question. Chainlink transforms the request question into another programming language before going out into the real world to retrieve data from the internet.[1]
Aggregating Contract
The Aggregation contract has the ability to validate data from numerous sources. Gets the most popular answers multiple times and then calculates the average value amongst them (certain values cannot be averaged).[1]
The Chainlink network architecture is made up of the following elements:
- Oracle nodes are in charge of obtaining data from the real world and delivering it to smart contracts on the blockchain.
- Aggregators are in charge of combining responses from several Oracle nodes into a single response.
- The reputation system is in charge of tracking the performance of Oracle nodes and aggregators.
- The Chainlink coin is designed to reward oracle nodes and aggregators for providing accurate and reliable data.
Chainlink’s network architecture is intended to be both decentralized and secure. Oracle nodes do not have to trust one another, and aggregators do not have to trust oracle nodes. As a result, the network is more resistant to fraud and manipulation.
Because the code for Chainlink-SC is available, the creators of USER-SC can have a high level of trust in CHAINLINK-SC.
Chainlink Github
Who found Chainlink?
Chainlink is the creation of smartcontract.com, which was founded by Sergey Nazarov and Steve Ellis.
Chainlink Website
Chainlik has consistently delivered on its promises, with intentions that extend beyond the Ethereum network.[1]
Who are the partnerships of Chainlink?
SWIFT (Society for Worldwide Interbank Financial Telecommunications) has a cooperation with Chainlink. SWIFT is a worldwide member-owned cooperative that operates a massive messaging system.[2]
Chainlink is Google’s official cloud partner.[2]
Chainlink collaborates with Bancor V2, Synthetix, Polkadot, Tezos, NEAR, Solana, Avalanche, Fantom, Arbitrum, Cardano, BitGo, Kraken, UNESCO, UNICEF, GrayScale, Swisscom, Associated Press, AWS, AccuWeather, and others. [3][4][5]
Tokenomics of the Chainlink
The Chainlink ICO was completed in September 2017. Chainlink’s LINK token is an ERC-677 (ERC-20 with added transfer and call capability) coin. There will be a maximum of 1 billion LINK coins available. Today’s circulating supply is at 556,849,971 (55%).
The nodes and oracles will receive 35% of the coins, the blockchain developers will receive 30%, and the public sales will receive 35%.[1]
The ceiling is so high that the value of the LINK could increase sevenfold during the next mega bull season.
The Chainlink team sells a large number of coins to fund the project’s development. At the 2021 high, the team sold a large number of coins.[4]
The chainlink team invests millions of dollars in project development, so they effectively complete their responsibilities on their roadmap. [5]
The major application of Link is to pay for decentralized data feeds, which are essential for any decentralized application to work. In principle, this increases demand for the link, but it has little effect in actuality. This is due to the fact that every link used to pay for data feeds is later sold by node operators, and this selling pressure cancels the buying pressure established by the dapps by purchasing the connection.
My Conclusion
(This is not financial advise; these are only my own opinions; please conduct your own research.)
Although Chainlink is a great project with massive potential, a great working team, good investments and partnerships, and a roadmap that they follow and successfully complete, it is not a good short-term investment because any link used to pay for data feeds is subsequently sold by node operators, which offsets the buying pressure created by the dApps. On the other hand, Chainlink is an excellent long-term investment since the project is achieving new goals with numerous collaborations, and the value of a coin or stock always improves if the project or company does well.
References
[1] Whiteboard Crypto, (15 January 2022), What is Chainlink? LINK Explained with Animations (Price Prediction):
[https://www.youtube.com/watch?v=GnXsJe2wZ_w]
[2] Coin Bureau, (15 December 2019), Chainlink Review 2020: LINK Potential
[https://www.youtube.com/watch?v=8VRP2wEx9Z8]
[3] Coin Bureau, (15 May 2020), Chainlink: Why I’m BULLISH on LINK!! 💥:
[https://www.youtube.com/watch?v=-pUR9WPIrX0]
[4] Coin Bureau, (20 January 2021), Chainlink: Still BULLISH on LINK But Are There Risks?! 🧐:
[https://www.youtube.com/watch?v=oszRMlrmm6o]
[5] Coin Bureau, (30 December 2021), Chainlink: LINK Still Any Potential? DEEP DIVE!!:
