Chainlink
Chainlink is a distributed platform built on Ethereum. Chainlink displays all high-quality data for smart contracts. Smart contracts are programs that are organized into a blockchain that automatically performs tasks assigned to them, removing them from third parties and other complex trust processes. It is not possible to influence or change smart contracts after that.
Chainlink has developed a system where the algorithm measures oracle based on the reliability of predictable data. In the Chainlink built system, predictions are rewarded with Chainlink's LINK tokens. Oracle producers of high-quality information receive LINK tokens, while predictions that produce low-quality information lose their own tokens. The Chainlink created system encourages predictors to produce high-quality information for smart contracts.
Although from Ethereum (ETH), Chainlink is designed to work on all blockchains with smart contract work. Chainlink does not operate its own blockchain - instead, it interacts with and operates on many different blockchains simultaneously.
Chainlink is a product launcher blockchain technology called Smart Contract, launched in 2014. Chainlink itself started with a white paper, published by Steve Ellis, Ari Juels, and Sergey Nazarov in September 2017. This paper describes their view of the oracle divided by the network.
The Chainlink project was quietly developed for several years, until 2017, planning to raise public funds, i.e., ICO, thus raising $32 million in project funding. Chainlink began operating on the Ethereum blockchain in 2019. 2019 was a solid year for Chainlink. That same year, Chainlink gained a number of significant partnerships (Google, Oracle, and Microsoft), and was listed as the world's largest cryptocurrency exchange.
The year 2020 also convinced Chainlink. Chainlink established itself as the world’s leading oracle solution and one of the world’s largest cryptocurrencies in terms of market value.
Chainlink technology is designed to solve one of the key challenges with smart contracts working on blockchains - providing blockchains with reliable real-world data. The project started offering its services with smart contracts on Ethereum but has now expanded its offer to other blockchain-capable contractors. Chainlink is a project that focuses to handle the challenges posed by centralized oracles used by smart contracts. Chainlink solved the oracle problem of smart contracts by creating a distributed collection of the oracle, each in which all oracles attempt to produce high-quality information. Smart contracts that use a separate oracle pool improve their reliability.
Chainlink blockchain is enabled for three types of smart contracts. · Aggregating Contracts - Collect data from oracle and match the most accurate results with the smart contract that is required. · Order Matching Contract - Matches a smart contract's service level agreement(SLA) with the best bids. · Reputation Contract - Confirms oracle integrity by looking at its record. This includes features such as the total number of completed applications, the response time, and the amount of LINK cryptocurrency oracle inserted in it. Nodes are made up of two parts: Chainlink Core - Chainlink Core is responsible for reading newly installed SLAs and submitting assignments to the Chainlink Adapter. Chainlink Adapter - Works as a bridge between node and external data. The adapter can read and process data and record it in a blockchain.
LINK is used for both the payment token and the work token. · As a payment token, LINK is used to pay for Chainlink node operators by providing oracle services. · As a function token, LINK can be added to the operator node as collateral for the provision of oracle services.
The LINK token offer was launched on September 19, 2017, with a $32 million hard cap. The pre-sale offer sold LINK for $0.09 per token with a 20% bonus depending on when the investor participated. Subsequent public sales sold LINK for $0.11 per token. Taken together, both sales sold 350 million LINKs. In total, 1 billion LINK tokens were first issued and issued as follows :
· 35% to Investors
· 35% for Premined Rewards and Airdrops
· 30% to Founders and Project
| DATE | NEWS/EVENTS | IMPACT |
| 01/09/2021 | Ethereum announced to integrate Chainlink's market-leading oracle solutions into its Ethereum layer-two services | +36% Increase |
| 21/07/2021 | Chainlink Network introduces an average of 1.4 new partners per day in 2021 | +28% Increase |
| 18/05/2021 | China prohibits financial and payment institutions from offering cryptocurrency services | -103% Decrease |
CONCLUSION
Chainlink technology has proven to be one of the most important pillars of DeFi and the broader crypto ecosystem.
In short, Chainlink can be used for anything that can benefit from the transparency, performance, and protection of blockchain-based smart contracts. It makes sure that the data is delivered through an open network of nodes where anyone can use their node, participate in Chainlink staking, and provide data to smart contracts.
