The blockchain industry is ready to interact with traditional companies. One of the integration methods is smart contract optimization. This is what ChainLink does. We will tell you about the advantages and disadvantages of investing in this token, as well as offer our prediction of the Link value.
How does Link cryptocurrency work?
Blockchains running smart contracts cannot maintain their communication with external systems, and smart contracts are not able to independently connect outside the chain.
Oracles act as intermediaries between blockchains and smart contracts. They provide communication with the outside world. However, oracles are today centralized services, which means that any smart contract using such services has a single point of failure that negates any benefits derived from the decentralized nature of smart contracts.
To fill this gap, ChainLink was designed as the first decentralized oracle to provide external data for smart contracts. As a result, the security and determinism of smart contracts can be combined with the knowledge and breadth of coverage of real external events.
ChainLink is a network that has two layers. The first level is off-chain, or a subnet of oracle nodes that collect information from third-party sources – databases, APIs, and so on. The oracles work independently of each other following the specified metrics. The second level is on-chain, which is responsible for the selection of oracles corresponding to the smart contract.
Without such oracles, companies would have to contract and exchange information traditionally. ChainLink provides the ability to do the same using blockchain technology and thus makes the exchange of information between companies more secure and reliable.
ChainLink perspectives
The project team cooperates with SWIFT, the world’s largest provider of secure financial transactions, thanks to this cooperation, the crypto network has access to the world’s largest banks that are ready to exchange information, which has a positive effect on the Link cost forecast.
Moreover, the parent company Smart Contract back in 2014 was engaged in the automation of contractual contracts and obtaining information. Some of the employees went to work in a new team. This will undoubtedly benefit the new project and determine the outlook for the Link cryptocurrency.
The project has a transparent and quite understandable, and most importantly, quite achievable goal in its market segment. Link cryptocurrency provides interoperability between chains such as Bitcoin and Ethereum and even allows traditional systems to be connected without the need for significant changes in classic institutions. In turn, the decentralization of the execution of smart contracts will significantly increase the accuracy and security of the information received.
On the one hand, Link cryptocurrency is focused on attracting and integrating large institutional investors who can use the existing technologies of the crypto network for advertising purposes, which increases the speculative component of the token. But at the same time, the creators of the project do not provide any preferences to traders, there are no special guarantees for big business either.
Link token capabilities
The decentralized cryptocurrency СhaiLink has an open-source code, which uses software specially developed by the project participants. With the help of Link tokens, the creators of the project allow information providers to earn money. The more productive a supplier is, the more the company gets.
As the developers have already stated, Chainlink tokens are not designed for mining, however, there should be no problems with storing coins. The cryptocurrency is based on Ethereum, so you can keep Link on any wallet that supports the Ethereum algorithm.
The total number of coins is 1 billion tokens, but only 350 million are available on the market, the rest of the funds go to the development of the project, which determines the positive forecast of the Link rate.
Where and how to buy Link coins?
You can buy Chainlink on several dozen cryptocurrency exchanges at once: OKEx, Huobi, Bibox, and LaToken. To buy a coin on any of the existing cryptocurrency exchanges, except Binance, a potential investor will need to follow the following procedure.
The first step is to register on the exchange. To complete it, you will need to top up the balance for the required amount.
After that, in the virtual terminal, select the currency that we want to sell. The next column contains the currency to be purchased, for example, the LINK / USDT currency pair.
Next, we issue an order to buy or sell the Link token.
After that, you can transfer the cryptocurrency to another wallet or account, or store it as an asset on the exchange.
On the Binance exchange, this cryptocurrency can be purchased for fiat money. However, when buying a token on this exchange, one specific feature must be taken into account. First, you need to purchase Bitcoin or Ethereum, and then transfer them to Link.
Storing cryptocurrency on exchanges (for example, Binance or Bithumb) is allowed if the user works with a small number of coins. However, storage on exchanges does not have a sufficient level of reliability, so it is better to use wallets for this purpose. It is recommended to use any wallet that supports Ethereum to store LINK.
