Chainlink – Blockchain Oracles for Connected Smart Contracts Explained
Oracle network for powering universally connected smart contracts, enabling any blockchain to access to real-world data.
Introduction
ChainLink ($LINK) has consistently proven to be one of the big guns in the Decentralized Finance (DeFi) space ever since its inception in 2017 by SmartContract. The American-based company is a decentralized oracle solution that serves as a link between smart contracts, cryptocurrency networks, and conventional data systems which are seemingly geared towards Decentralized Finance projects by operating a $LINK token.
In any case, briefly described below is an overview of ChainLink’s revolutionary step in the cryptocurrency industry.
What is ChainLink?
ChainLink is very prominent for their innovative technology which has enabled them to resolve problems associated with smart contracts which are lines of codes tasked to execute certain processes on a blockchain network. The data is mainly sourced from “Oracles” which in turn poses a problem when processing transactions as Smart Contracts typically process without vetting the codes passing through it. This problem was resolved as ChainLink figured out a way for seamless transfer of information through the formation of a decentralized blockchain which serves as a middleware agent while also ensuring that optimum security is maintained.
What is the $LINK Token? What are its Benefits?
The significance of ChainLink spans beyond Defi as its technology also serves as a link to extend decentralized applications (dApps) to a wider consumer base. The $LINK token is the primary means of transactional exchange on ChainLink that was developed from an ERC677 token. The token, which aligns with ERC-20 token standards, provides a feature on its platform known as “transfer and call” and can also be used to bid for provisional information and incentives between Purchasers and Providers of data on the interface. The incentives paid out are also $LINK tokens as well.
ChainLink’s Affiliations
ChainLink is currently affiliated with major brands in several industries for increased growth. CEO Sergey Nazarov has led the company which has formed alliances with Fortune 500 and powerful governments around the globe. His unique charm, likeability, and strategy have helped unify several partnerships by providing a decentralized system for several businesses to work with without having to start over.
Some notable companies that have partnered with the ChainLink include Hyperledger, Synthetix Network, Celer Network, Google, SWIFT, Chinese Government Blockchain Service Network (BSN), DocuSign as well as betting companies like BetProtocol and Sports Oracle to provide decentralized Esports on their platforms.
Growth of ChainLink and $LINK Prices
The impact of ChainLink in the advancement of cryptocurrency through its oracle solution cannot be overemphasized. We are yet to see how pivotal the oracle technology is as cryptocurrency usage increases globally. Projections seem to point to growth over the coming years.
Token price at the beginning of May this year was around $3.72 and climbed up to about $14. Recent publications by Forbes also indicate an increase of %1000 over the last year. The recent increase in prices of the token was largely reported to be a result of strong partnerships entered into by the company over the last 12 months.
ChainLink and Zeus Capital LLP
Zeus Capital libeled ChainLink on the 15th of July 2020 with accusations of insider trading and fraud in an attempt to deceive unsuspecting investors into buying up their tokens. They had questioned the integrity of the cryptocurrency firm and their alleged alliances with tech giants; Google and Oracle.
They had also allegedly sought out services of Twitter cryptocurrency influencers to carry their publications that LINK token prices are bound to fall while promising them huge incentives for their misinformation efforts. This did not go down well with investors as they blatantly debunked all the rumors as purported lies spread by Zeus Capital. Zeus Capital, based in London, subsequently published a report denying the allegations.
