Give a closer look at ChainLink (LINK)
As many already know, the exploration of blockchain technology started with the launch of Ethereum. Until ETH was born, the blockchain was seen only as a single-purpose technology – something that is only there for management cryptocurrencies. However, Ethereum has brought dApps, smart contracts and has opened the door to countless new use cases for this technology.
Obviously, to use this technology, it must be connected to mostly off-data data and information. While this will likely change in the future, there is a real need for some kind of special effect to integrate accurate data into smart contracts while data is off-line.
This is where ChainLink comes into play.
What is ChainLink?
In short words, chainlink it is a decentralized oracle network. It aims to link out-of-chain infrastructure with blockchain technology to enable us to use out-of-chain data on the blockchain. In other words, it acts like a bridge, or an agent, that will find and verify data in the real world, then it will take them to the blockchain, so you can create smart contracts.
Other oracles that are available today are still centralized and have a single point of failure. In order to achieve its goal, ChainLink uses two components: the on-chain component and the off-chain component.
1) ChainLink on-chain component
ChainLink is active– the chain component consists of various contracts implemented on the Ethereum network. There are three main ones: a reputation contract, an aggregation contract and the order matching contract. These three contracts are processing all requests for access to off-chain data.
In short, if a user wants to access some data out of the chain, he is forwarding a request contract to ChainLink. chainlink will elaborate the contract in one of his and send him to an appropriate oracle.
When it comes to reputation contracts, these are contracts that control an oracle's track record and confirm their authenticity. With regard to order matching contracts, they register the request for a contractual agreement on the network and collect the offers provided by previously verified oracles. Finally, there are aggregation contracts, which collect data from the chosen oracles and calculate the final result for the query.
There are three steps for the process – Oracle selection, data reporting (recovery of data from off-the-shelf sources), and aggregation result (collect data provided by oracle and provide the most accurate answer to the user).
2) ChainLink out-of-chain component
When it comes to the ChainLink off-chain component, it consists of a network of Oracle nodes. All these nodes are connected to the Ethereum blockchain. They are in charge of collecting data from off-source sources, processing them and providing what is relevant to user requests. All these operations are paid in LINK, which is an ERC-20 token belonging to ChainLink.
Moreover, knots outside the chain allow developers to include plugins used by operators to host other programs and simplify data collection. Every request for information is satisfied through the use of numerous oracles, while each oracle uses a different source for data collection. In this way, the collected data will be accurate and abundant.
Details on ChainLink
chainlink started in 2014 when it was created by a company called smart contract. It consists of developers and engineers who are working to further develop the project and implement new solutions when needed.
chainlink is live on Ropsten, an Ethereum-based testnet. Despite the fact that they have made excellent progress in the development of the network, ChainLink does not become very noisy when it comes to progress or activities such as partnerships and the like.
Despite the fact that the project has been active for some time, progress has been largely slow due to the complexity of the project. They still have to launch their MainNet, which is something the community does not see the time to do. This area of the blockchain industry it is unique and, as such, must be managed precisely, which takes time.
As for the Token LINK, is used to pay nodes operators for data recovery, data formatting and uptime. There are 1 billion coins on the total offer, with 350 million in circulation. The current price of the currency is $ 0.345771, and can be purchased on Binance, Bithumb, Bkex, Huobi and other exchanges.