Chainlink: What Is It & Why Should You Care?

February 21, 2023

Demystifying Chainlink (LINK)

Chainlink is one of the hottest properties on the blockchain right now, but what exactly is it? As one of the most established blockchain projects with high visibility it has attracted the attention of many. So if you have heard about it and you’ve been wondering what all the hype is all about and why you should care, then read on. We’re here to break down the basics of Chainlink so that you can make a more informed decision when it comes to investing in this exciting technology.

What is Chainlink?

Chainlink (LINK)  is both an altcoin (or cryptocurrency) and blockchain technology. It is an Ethereum-based decentralized oracle network, which provides real-world data to smart contracts. It was created by Sergey Nazarov and Steve Ellis in 2017 with the goal of providing secure data inputs for smart contracts. The idea behind Chainlink is to bridge the gap between off-chain and on-chain data by allowing developers to use real-world data such as stock prices or weather reports in their smart contracts.

By doing so, developers can create applications that are more complex and useful than ever before. Thanks to its scalability and potential for future development, more and more companies are jumping onboard this altcoin bandwagon. From financial institutions to manufacturers, Chainlink's features offer advantages for almost any industry.

How Does It Work?

Chainlink is an altcoin and crypto protocol that helps blockchain networks interact with real-world data. It works by connecting each node (known as “oracles”) in the blockchain to external sources (off-chain APIs), allowing them to become aware of changes such as stock price shifts, weather data or other online activities. Oracles are responsible for fetching external data and relaying it back to a blockchain where it can be used by smart contract applications.

To ensure accuracy, multiple oracles are used in order to verify any given piece of data before it is sent back to the blockchain. By facilitating this connection between smart contracts on the blockchain network and these external sources, Chainlink allows up-to-date information to be used to trigger agreements or payments. This ensures that transactions conducted on the blockchain are as secure as possible, safeguarding users against fraud and other malicious activity.


Why Should I Care About Chainlink?

Chainlinks offers a lot of potential for traders, investors, and developers alike. For traders and investors, Chainlink provides access to real-time market information which can be used to inform investment decisions and monitor market movements. For developers, Chainlink allows them to build sophisticated applications powered by real-world data which opens up a whole new world of possibilities when it comes to building innovative solutions based on blockchain technology.

What Are The Use Cases for LINK?

The LINK token is an entirely novel payment token created to enable faster, easier, and more secure payments around the world. It provides a range of opportunities for various use cases in tokenised trading and exchange. With LINK token, users can utilise token-to-token transactions - eliminating the need to convert tokens into fiat currencies.

Additionally, thanks to the token’s experienced project team, it can be used as a means of payment for goods and services in real-time. From token offering liquidity to cryptocurrency market makers, building cost-effective remittance services to tokenised crowdfunding campaigns - $LINK has many use cases that align with its core goal of making payments easier, faster and more secure.

Buy The LINK Token

Whether you're a trader looking for an edge or a developer interested in creating more complex apps powered by reliable data sources, Chainlink has something for everyone! So if you're looking for ways to get involved in this burgeoning technology space then don't hesitate. You can easily purchase the LINK token on the Smart Exchange.

Kostas Alekoglu
Kostas Alekoglu has been involved with the world of cryptocurrency, blockchain and web3 since 2018. He has been a part of numerous altcoin projects in the sectors of DeFi, security, crypto gaming, and NFTs.

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