ChainLink (LINK) provides a reliable connection to external data that is secure. It opens up the possibility for smart contracts to use data source whatever the source is. With ChainLink, developers can launch their own API and enterprises can sell their data by smart contracts.
ChainLink is created as a way to use Oracle’s to pull data from off-chain sources. ChainLink oracles are able to use data pools and application program interfaces (APIs). It is extremely helpful to projects that need off-chain data to be really useful. ChainLink seeks to be the bridge between traditional data and the future of blockchain technology by giving blockchains access to traditional data sets.
Simply, ChainLink is a decentralized oracle network aiming to connect the off-chain infrastructure with blockchain technology. Oracles created by ChainLink will be critical to some blockchain protocols that have very limited utility.
ChainLink has also focused on building partnerships than on marketing, and their partnerships are a part of strength as well. ChainLink has partnership with the SWIFT banking transaction network. SWIFT is one of the largest global financial networks and it can lead to many other partnerships in the finance industry.
The On-Chain smart contracts are the first part of ChainLink’s architecture and oracles are included in the smart contracts. The oracles take users’ requests for off-chain data that are submitted to the network using the contract and sending them to the appropriate smart contract.
ChainLink’s decentralized nature and difference from other oracle protocols are shown by the concepts and source distribution.
The LINK token is an ERC-20 utility token and this includes paying date feeds provides, payment oracles and maintaining a reputation system for payment oracles. LINK can be stored in any wallet that supports ERC-20 tokens such as Myetherwallet.
Their project has been live for some time, however, their progress is slow due to the project’s complexity. If ChainLink is successful, they could change smart contract usage and effectiveness.