Coinhako Basics: What is Chainlink (LINK)?

Coinhako Basics: What is Chainlink (LINK)?

Chainlink is an Ethereum-based platform/network that aims to bridge the gap between blockchain-based smart contracts, and real-world applications.

This bridge is enabled by an instrument known as ‘Oracles’ (a DeFi instrument, which allows the ETH network to receive external data and execute smart contracts to run tasks on a Decentralized App (dApp). This helps to resolve the long-time issue of blockchains being unable to access data outside their networks and has tremendous potential to enhance the real-world application of blockchain technology.  

LINK is the native token for Chainlink’s network and is built on the Ethereum platform known as 'ERC20'. LINK tokens are used as a form of payment to data providers who transfer the data onto the blockchain and might also be used for payment of data providers who bring and translate data into the blockchain.

Chainlink uses a combination of on and off architecture.

With On-chain, its primary duty is to ensure the process between purchasers and providers is accurate. With every purchaser requesting data, there will also be providers securely returning data. Purchasers have the responsibility to select data while providers will ensure that they bring the right information on chain. There will be result aggregation at the end which collects all the data submitted and thereafter aggregates them. 

On the other hand, off-chain nodes are connected to external API and thus, connect all nodes through the Chainlink network. 

LINK is the native token of Chainlink. It is an ERC20 token built on Ethereum and is used to pay for Chainlink services. 

Chainlink is fully supported on Coinhako, this means that you can trade and manage LINK at Coinhako!

The future of Chainlink includes tighter security on its network to be able to be a strong dependable network for its users. There is also a Chainlink Community Advocate Program which aims to educate and include more people in developing and shaping a better future for Chainlink.

You can view LINK's Whitepaper to learn more about the digital currency!

View LINK's price!

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All opinions expressed here by are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.

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