- More secure than other data oracle networks.
- Cross-chain compatible and allows easy sync of data between different chains.
- Allows monetization of data by selling data directly from providers to buyers.
- Partnerships with big enterprises.
- Enables hybrid smart contracts.
- Financial rewards for securing the network and providing data.
- Even though Chainlink claims to be a decentralized network, much of the supply is still with the parent company making it a centralized cryptocurrency network.
- Chainlink still heavily relies on the Ethereum network that is facing scalability issues.
- Many critics of the project have questioned the requirement of LINK tokens. The system can even work without LINK tokens.
- No official wallet support.
The Chainlink token (LINK) is the native currency of the Chainlink ecosystem that seeks to provide an easy, quick and cheaper mechanism to sync off-chain data with smart contracts thereby providing a link between data from outside sources and into the smart contracts.
LINK has become a mainstream cryptocurrency and is used for payment of fees for utilizing the Chainlink ecosystem. LINK will also be used for staking in the future. LINK has managed to establish its place among the top fifty cryptocurrencies by market cap for a long time.
Many institutions ranging from decentralized finance applications to supply chain solutions have adopted the Chainlink technology for integrating off-chain data.
The initial total supply of LINK was 1 billion tokens but it has reduced since then as tokens get burned during transactions. The Chainlink token has a finite supply. The total supply is thus fixed at 1 billion as new coins cannot be created. The distribution mechanism is explained below.
Node Operators: 35%
Public Sale: 35%
Research and Development: 30%
Yes. The LINK token has been audited by Callisto Network and is also doxxed properly. Chainlink publishes regular documentation via press releases and is active on social media channels.
Trust & Fairness: 4
Exchanges & Swaps: 5
Overall Rating: 4
Chainlink was born in 2017 to enable hybrid smart contracts. The main issue with smart contracts is that they inhabit a closed ecosystem inside a blockchain network. This works fine as long as the blockchain does not need to interact with data from the outside world. But the integration of off-chain data becomes an issue. Chainlink has become very popular as it solves this dilemma and provides a great use case for developers. It helps in the integration of off-chain data by the use of what is known as decentralized oracle networks or DONs.
The native token of the Chainlink system is known as LINK. It is an Ethereum-based token and is used for paying fees and also for staking purposes inside the network. The nodes securing the network are paid fees in terms of the LINK token.
It is important to remember that Chainlink ecosystem is more of an enterprise solution with not much benefit for the retail user. It helps large corporations and organizations to sync data continuously but for a retail individual user, understanding or making use of the LINK ecosystem may be a tricky affair.
The data system provided by Chainlink has diverse uses from decentralized finance applications that need continuous price feeds such as the Yearn.finance, AAVE, and Synthetix, to weather applications that need to monitor atmospheric data on a global scale.
The Chainlink data oracles can be applied in many industries such as insurance, decentralized finance, supply chain ecosystems, gaming, and identity verification.
The Chainlink ecosystem is also compatible with multiple blockchains such as Ethereum, Terra, and Solana. Support for more blockchains will be added soon by the LINK ecosystem. Chainlink has been instrumental in ushering in an era of hybrid and cross0-chain smart contracts that have revolutionized the blockchain industry.
Chainlink provides data feeds, ensures randomness in smart contracts, and also provides automated services for smart contract maintenance.
An industry-leading network of node operators
Chainlink utilizes a variant of the Proof of Stake system known as Proof of Reserve for securing the oracle network and so far the network has been able to maintain integrity which is why it is preferred and has become so popular among enterprise solutions. Chainlink also provides the ability for data providers to sell their data through Chainlink enabling monetization of data.
The Chainlink community is a global network of developers and the ecosystem also supports grant programs for developers looking to improve and build with the LINK token and the Chainlink ecosystem in general.
ChainlinkNet has seen a lot of adoption and many companies and enterprise solutions have embraced the technology provided by LINK. Crypto Unicorns, a gaming ecosystem had been making use of Chainlink technology for a long time. DeFi solution providers such as Scarab Finance, Celsius Network, Sphynx Network, Defrost Finance, Feeder Finance, Exodia Finance, and Inverse Finance all make use of the price data provided by Chainlink.
The LINK token is available on most exchanges. It is a popular cryptocurrency and you can buy LINK on some leading exchanges including Gate.io, LBank, BitMart, Binance, Coinbase, OKEx, Kraken, BitStamp, Woonetwork, TokoCrypto, WazirX, Bittrex, CoinDCX, Bitbns, eToro, Crypto.Com, and HotBit.
You can buy LINK either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase LINK directly through a supported decentralized exchange known as Uniswap. All you need to do is connect your wallet such as Metamask and select the appropriate coin pair that you wish to use for purchasing LINK (for example BTC/LINK or ETC/LINK). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Chainlink Token. You can also use LINK for purchasing other altcoins through the decentralized route as explained above.
Hodl as a long-term investor: You could simply hodl it and gain from its price appreciation in the long term. The token can also be used for deposits on supported wallets and exchanges to generate an interest yield.
Use LINK to pay for goods and services: The LINK cryptocurrency is supported by many payment carriers and can be used to pay directly for goods and services. It provides a quick and near-instant method for settling payments.
Swap LINK to other BSC/ETH tokens: You can use LINK and directly swap to other altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap LINK to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of LINK you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
How to Buy LINK?
In order to buy LINK, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing LINK on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy LINK. You will need to complete the Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
1. Go to the exchange site where LINK is listed and click on the Register button.
2. Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account.
3. Click on the agree to terms and conditions button and wait for the verification mail or message.
4. Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport, or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users.
5. Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy LINK.
6. Most exchanges support multiple payment methods including credit/debit cards, bank transfers, third-party payment processors, and P2P transfers.
The LINK token holders will be able to stake their tokens soon for earning a passive income. The Chainlink ecosystem plans to bring staking ability in 2022.
The all-time high price of one LINK was $52.70 on May 10, 2021. It is currently trading at $18.09 at the time of writing (Source: CoinGecko). The all-time low price was $0.14 on November 29, 2019. Comparing the all-time low and the all-time high price, we get returns of about 12125% which are very impressive returns. The LINK token has established its position as a leading cryptocurrency. The LINK price can be checked on sites like CoinGecko and CoinMarketCap.
Can chainlink (LINK) hit $100?
Not within a year. it reached an all-time high of $52.88 in early May of 2021. But it is predicted to rise to a value of $100 earliest in 2027 considering the current market cap being valued at $3,341,433,125.
Is Chainlink (LINK) a scam?
Chainlink is as reliable as any other cryptocurrency with a market cap valued at over 3 billion USD. Taking note of its reputation and long history Chainlink is a reliable cryptocurrency. However, if you're planning on investing in this token you should do your own research.