Updated: Sep 1, 2020
As Chainlink has caught fire this week, I thought it would be a good time to write a blog post explaining what Chainlink is! Developed by Sergey Nazarov in 2017, Chainlink is an ERC-20 token built on top of the Ethereum platform. It acts as a decentralized oracle network which aims to connect smart contracts with data from the real wold. Chainlink easily connects smart contracts to the data sources and API's they need to function. Also, Chainlink allows payments on smart contracts to bank accounts and payment networks.
Chainlink can be seen as a secure middleware, a bridge between data and a smart contract. Without this secure middleware, it is hard for smart contracts to exist. Smart contracts cannot access their own data. Chainlink solves the problem of external connectivity.
If a smart contract is connected to API data through a centralized oracle, that would create a single point of failure. That is a bad thing! It puts the network at risk and significantly diminishes reliability. Chainlink is a decentralized oracle, meaning that mutliple Chainlinks can evaluate the data before a smart contract is triggered. Having a single point of failure is eliminated, making sure that the value of the smart contract is secure, reliable, and trustworthy.
Chainlink has become a key player in the DeFi or Decentralized Finance ecosystem by powering secure, reliable, and transparent price feeds for DeFi projects. It can be integrated with just one line of code, making it easy to build DeFi products across a multitude of use cases, including synthetic assets (tied to real world assets), lending and borrowing (calculating interest and settling loans), stablecoin valuations (usually with a value tied to USD or gold), and asset management (facilitating multiple forms of payment).
Chainlink has partnerships with Bitcoin, Google, SWIFT, the Chinese Government Blockchain Service Network (BSN), DocuSign, BetProtocol, Hyperledger, Aave, Loopring, Synthetix, and so many more! The growing number of partnerships is one of the reasons why the price of LINK has soared over 1,000% in the last year.
Chainlink is my #1 altcoin pick for 2020!* This is due to its real world use cases and growing adoption. It has already exploded to a top 10 market cap and gaining popularity in the retail market. *This is NOT financial advice, just how I personally view LINK. ;)
If you would like to purchase Chainlink, you can do so on Coinbase! You can start today by downloading the Coinbase app from Google Play (Android) or the App Store (iOS) to purchase your first LINK! You'll get $10 for FREE if you buy $100 or more using the Coinbase link above.
For more information on how to use Coinbase, check out our blog post, Coinbase - The Best Place to Get Started With Crypto!
If you are a fan of Chainlink, check out our Chainlink Collection, featuring tees, hoodies, and even face masks! Happy shopping!