Cryptocurrencies have been making headlines. There are many cryptos today in the global market. Bitcoin was the first crypto to gain a global launch. Since then the market has spread rapidly. Today, there are more than 14k+ cryptos in the global market. The total market capitalization of cryptos has increased to more than $3 trillion.
Chainlink (LINK) is a popular cryptocurrency enabling the secured connection between independent networks. If two or more independent or non-blockchain networks want to connect. Then such connectivity is possible through the LINK platform.
The LINK platform works as a linking tool between two different networks or services. The platform enables the execution of smart contracts when external data and connect establishes.
Let us look at a real-life example to understand the technology better. If you are a farmer and have got drought insurance under your name. Then a contract is signed in a way that if the rainfall exceeds an acceptable limit you receive insurance. The whole policy and payout run on automation and smart contracts. But, how will the system check the accuracy of rainfall? This is when an external software or tool takes shape. The platform makes use of an external tool to analyze the amount of rainfall. Once both data matches, then the smart contract runs on its own. The farmer will either receive the money or not receive money according to the rules.
Any enterprise making use of the LINK platform can access any of its underlying networks. This includes Ethereum, Solana, and even Terra.
The Link platform is currently hosted and works on Ethereum technology. The platform makes use of the proof of work protocol. The blockchain works on an open-source network. This means anyone with programming and blockchain expertise can contribute to current coding.
Now that we have understood the basic working model, let us also look at certain features of Link.
Randomness from Verifiable and Trusting Sources
Yes, an example of this is the gaming industry. If there is a need to import random source data yet trustworthy, then Link can be your source. The platform can provide you with cryptography-enabled data for use.
The Link platform is efficient to connect many sources of data. The data source may be messages, tokens, or even any specific action of importance.
This is another key feature and advantage of the Link platform. The platform can execute hybrid smart contracts when certain conditions are adhered to. There is no intervention of any third-party agency here.
Leveraging Link Platform
Chainlink got its global launch in 2017 and works on a decentralized oracle network. The Oracle platform enables connectivity with any external data source. Once this connection is established, the smart contract is executed on the platform. The platform makes use of Link tokens to reward network operators in the system. These operators undertake the job of retrieving data on the network. Since any blockchain is irreversible, this is an extremely tedious and careful process.
Chainlink made its global entry through an initial coin offering. The token launched at an initial price of $0.11 per token. Fast forward, the token had its ups and downs. Recently, the token touched an all-time high of $54 per token.
The developers are also on the plans for launching an upgraded version of Chainlink. A white paper on Link 2.0 was released in April 2021. The paper outlines details on how and what upgrade is underway on this new token. The continued innovation and technological developments in the network are promising moves. It will spike the prices of the token once again. Investors are sure to gain the highest advantage through this investment model.
No, at this point there is no estimate on it. The technology promises of being able to integrate real-time data on its network. As technology continues to scale upward, there is room for many opportunities. It will make the network flexible, trustworthy, and also scalable. The Link platform will continue to add value until there is technology-driven data.