beginingCryptocurrenciesAltcoinsWhat is Chainlink (LINK)?

    What is Chainlink (LINK)?

    "Chainlink is the bridge between blockchains and real data." –  chain. link

    The problem:  Blockchains are great for data sharing, transparency and transaction of value globally, instantly and securely. The problem with this is that the data that this blockchain transmits is often not audited and the issuer must be trusted that the data is true and correct. With blockchains promoting the transparency and verifiability of every transaction, the data that makes up that transaction must also be verifiable: Enter Chainlink.

    Chainlink greatly expands the capabilities of smart contracts by giving access to real-world data and off-chain calculations while maintaining the security and reliability guarantees inherent in blockchain technology. Chainlink's decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.

    A reliable, tamper-proof network

    Use decentralization, trusted nodes, first-class data and cryptographic evidence to connect highly accurate and available data / API to any smart contract, Chainlink creates a rich environment for institutions, businesses and developers platform to get real-world data into their decentralized applications without compromising security, reliability or trust.

    Seamless connection to any API

    Build on a flexible framework that can pull data from any API, connect to your existing systems, and integrate with any blockchain, now and in the future. Chain supports many different feed markets, all of which are maintained and delivered by decentralized nodes working together to provide true and accurate data to be used by anyone using the Chainlinkblockchain. The currently supported data channels available on Chainlink are:

    • Cryptocurrency (ETH pairs) Data Streams
    • Cryptocurrency (USD pairs) Data for data
    • Stablecoins Data Feeds
    • Emissions with ether gas data
    • Data issues in foreign currency
    • Commodity Data Feeds
    • Indexes data feeds
    • Evidence of backup data feeds

    Additional data feeds will continue to be added to Chainlink as more online businesses and definition platforms take real-time data from various markets to build their applications.

    For example: Previously, if you wanted to input the USD/GBP exchange rate in your application, you would need to grab a price feed from a third-party website and custom integrate that API into your platform, and also rely on the real rates that are subscribed to you and your users. Any issues with the application programming interface (API), the platform feeding the data, or the exchange itself could be compromised at any point in the data collection process, which would impact the results of the app's ecosystem and user base. Not to mention, custom API endpoints also need to be developed to bridge the gap between a standard RestAPI and whatever blockchain your application is built on.

    Taking the same data feed from Chainlink, the USD/GBP data source will take from the standard peice of API code, similar to the blockchain codebase you've already invested in, with the added layer of verifying that the USD/GBP valuation that the app uses you, has been verified by a number of unaffiliated, cooperating sources of verifiable truth.

    Proven, time-tested solutions

    Integrate oracle's battle-hardened and time-tested solutions that deliver billions of dollars of value to market-leading blockchain projects. With the rise of Crypto, Blockchain and now Decentralized Finance (DeFi), many projects are turning to trusted decentralized oracles like Chainlink to ensure their data feeds are correct and stable.

    Transparent oracle calculation

    Independently monitor and verify Chainlink's open source code, the performance of its oracle networks, and the quality of individual node operators. With transparency and verification built in as standard, developers and businesses can build trust with Chainlink as a provider and also a decentralized ecosystem of investors, developers, nodes and data providers.

    Chainlink's open source nature has enabled many startup ideas to blossom and scale quickly using reliable and verifiable real-time data feeds without having to sacrifice usability or reliable data for their minimum viable product (MVP ).

    Smart contracts are inherently discontinuous

    Blockchains are highly secure and reliable value exchange networks, but lack the functionality to mine external data or send data to off-chain systems in a way that preserves end-to-end sustainability Blockchains are essentially closed-loop systems for transferring existing and created value across the chain, but it can be difficult to import and introduce new usable datasets at scale.

    Interoperability of chains not only with its own chain, but also with all other chains it works with, creates the building blocks for the next development of financial markets.

    Through the use of secure oracles, Chainlink extends the functionality of blockchain by connecting smart contracts to real data, events, payments and more in a highly sustainable and reliable way.

    Chainlink Price Feeds provide critical market data needed to issue, settle and secure DeFi applications. The Chainlink network supports multiple price feeds that live in production, providing billions in value to many leading DeFiapplications, CeFi companies, and various other financial institutions.

    Include decentralized data inputs to provide your users with superior assurances about the performance of key services.

    Connect to any blockchain

    Use one software to connect your existing systems to any current or future blockchain environment. Making the key decision at the start of a business or development to invest in a blockchain is something that takes long and careful planning. Only a handful of projects in the blockchain space are split into multiple chains and rely on one centralized counterparty to ensure parity of their business activities.

    Chainlink's goal is not only to provide a real-world data feed, but also to become an interoperability platform for blockchains to work together.

    Learn more about Chainlink from the Chainlink website:

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