The ChainLink (CL) network has been functioning since August 2017. The project has not been implicated in scam. ChainLink is in demand and is constantly evolving. Cryptocurrency of the network shows good dynamics, considering situation on the market. Let’s consider it in more detail.
What is ChainLink?
ChainLink is not a blockchain platform in the usual sense. It is rather an intermediate software that provides the maximum expansion of smart contracts’ functionality. Using ChainLink network, smart contracts receive the necessary information from the outside world through the API of various web applications, as well as data on bank accounts and transactions via available channels in the banking system.
This allows you to bring smart contracts closer to real written contracts and make automation of their implementation as correct as possible. In fact, Chain Link provides a smart contract with the necessary data on the fulfillment of the terms of the contract. In addition, the network offers the possibility of choosing between various forms of payment, including banking methods.
What Is It Used For?
Smart contracts are the future of contractual relations. To ensure their proper functioning it is necessary to provide continuous communication with external resources, which is impossible without intermediate software based on the blockchain – the so-called “oracle”. It is this problem that ChainLink solves.
A distinctive feature of the network is cooperation with the banking system. Moreover, the project team sees detokenization of smart contracts one of its tasks. This should popularize the technology of blockchain and make smart contracts a part of everyday life.
If you want to create a smart contract, CL will give you the opportunity to use Bitcoin, Ethereum, and Hyperledger blockchains.
Well, ChainLink will help:
- To connect to any existing API. A smart contract will get access to existing applications and important external data for its execution.
- To make payments in various ways. Smart contracts will make payments not only on crypto wallets, but also on bank accounts.
- To connect to another blockchain. You can create a secure interconnection between a smart contract and other private or public “chains.”
The oracles network’s features LINK token. ChainLink is actually not a blockchain platform, so the coin of the network was created on the Ethereum blockchain. This is an ERC-20 token. It will probably stay like that.
To know more about LINK cryptocurrency and its future price, read our article here.
The project performs a very large amount of work and resolves up-to-date tasks. We have a number of reasons to believe that it has a great future:
- CL supports the work of smart contracts, the popularity of which is growing every day;
- The company cooperates with the banking sector, which makes its product attractive to a wide range of users;
- The network works with Bitcoin, Ethereum, Hyperledger, this list will be probably replenished soon.
So, it is worth to monitor the development of the project on a regular basis. It was created for practical solution to urgent issues. This is a rarity in the world of blockchain start-ups.