What is Chainlink?
This blog post will cover:
- What is Chainlink?
- Where did Chainlink come from?
- What are the advantages of Chainlink?
- What are the disadvantages of Chainlink?
- How to buy Chainlink on SimpleSwap?
What is Chainlink?
What is Chainlink (LINK)? Chainlink is a decentralized oracle network that connects blockchain-based smart contracts to external data, payment networks, and various real-world events. It is known to have a secure infrastructure that allows smart contracts to link to APIs to communicate with and obtain data from external sources.
The main aim of the project is to optimize and expand the usage of smart contracts and to reduce the possibility of information fault or inaccuracy. Oracle nodes receive real-world data, proceed it through the network and take it to the blockchain. Oracle operators that contribute to the Chainlink harvesting and transmission have a reward in LINK tokens. Chainlink native cryptocurrency, called LINK, is one of the main components of its decentralized network.
LINK is an Ethereum token based on the ERC667 standard, which makes it compatible with the popular ERC20 standard as well. This means that LINK tokens can be stored in any Ethereum wallet.
Some experts predict to see LINK reaching around $10 and making it to the top 10 cryptocurrencies in CoinMarketCap by mid-2020.
Where did Chainlink come from?
The project was launched by SmartContract company established in 2014. It has offices in New York and San Francisco, which makes Chainlink an American project.
The company cooperates with the interbank data transfer and payment system SWIFT, which covers 11 thousand banks worldwide.
ICO was held on September 19th, 2017.
The project was laying low during the bear market of 2018. Almost nobody was talking about Chainlink and the LINK token crashed down like every other altcoin. However, in summer of 2019 LINK token moved from $0.5 to over $4 in just two months.
What are the advantages of Chainlink?
- The most important factor is the status that Chainlink has in its niche
There aren't any direct competitors in the market.
- An advanced team of professionals
The Chainlink development team works closely with established computer science academics and experienced cybersecurity researchers.
- Chainlink isn't tied to any particular blockchain either, even if now it runs on Ethereum only
It is important for investors that Chainlink’s future doesn’t go together with Ethereum or any other blockchain.
- The price of the LINK token is tied to the success of Chainlink
Its price will go up if there is more demand for the services of the Chainlink network. All LINK tokens are pre-mined, so there won’t be any new ones coming to the market.
What are the disadvantages of Chainlink?
- The Chainlink project is still in early stages
Many key features are still words on the WhitePaper.
- The question of necessity
There are some opinions that the LINK token is an unnecessary element of the project since there are other cryptocurrencies being adequate to provide compensation to operators, and that oracles themselves would have incentive to keep their network and access to their own data constant.
How to buy Chainlink on SimpleSwap?
Let’s say you want to buy Chainlink. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select LINK in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient’s Address. Chainlink will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
This is everything you need to know to buy LINK.