One of the ways to attract more traditional companies to adopt blockchain technology is to let them connect with blockchain platforms and enjoy its benefits without the need to reset their system. This is what Chainlink claims is doing.
Launched in 2017, Chainlink is a blockchain-based decentralized oregon network (DON) that allows users to mint real-world data into blockchain networks, enabling the creation of “hybrid” smart contracts.
It has a native token, $LINK, which is used to ensure that the external information and off-chain computations fed to on-chain smart contracts are reliable and tamper-proof, according to CoinGecko.
LINK to PHP Price
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Brief History of Chainlink: A Timeline
- 2017: Sergey Nazarov and Steve Ellis co-authored a white paper introducing the Chainlink protocol and network with Cornell University professor Ari Juels.
- 2018: Chainlink integrated Town Crier, which connects the Ethereum blockchain with web sources that use HTTPS..
- 2019: Chainlink launched its mainnet on Ethereum and registered its trademark in the Cayman Islands under the name Smartcontract Chainlink Sezc, Ltd.
- 2020: Chainlink integrated DECO, a protocol that uses zero-knowledge proofs to allow users to prove information is true to a blockchain oracle without revealing sensitive information. It also partnered with other firms, such as Google Cloud, Oracle, SWIFT, and Aave.
- 2021: Chainlink published a second white paper, Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks. The paper talked about expanding the role and capabilities of DONs to include hybrid smart contracts, which utilize on-chain code and off-chain services.
How Does Chainlink Work?
As a DON, Chainlink is a system of nodes that follow a set of protocols. Though it is only a network and not a blockchain, it still as node operators for running the system. They are the one who set their own fee based on demand for the off-chain resource they provide.
“Chainlink services are powered by decentralized oracle networks with a long track record of high availability, reliability, and data accuracy,” its website read.
Basically, Chainlink acts as an intermediary between off-chain and on-chain systems, as the hybrid smart contracts could access off-chain resources and execute the contract without the need for external control from any third party.
However, it must be noted that this intermediary is decentralized. As explained by online publication Phrase Mix, because of the connected oracles that serve as input providers, users are assured that the contract will be executed without compromising safety.
Chainlik also supports cross-chain interoperability, allowing smart contracts to interact with different blockchain platforms and protocols. It is also said to provide flexible and open-source framework for building oracle solutions.
Projects in Chainlink
Because of this, about 1,800 projects, startups, and enterprises has already integrated Chainlink into their system, as per the website.
It is being used in decentralized finance (DeFi) projects to access real-world market data, such as price feeds, interest rates, or exchange rates. These projects include Aave, Synthetix, Compound, and MakerDAO.
NFT projects CryptoKitties, NBA Top Shot, and Decentraland, and blockchain games CryptoBlades, The Sandbox, Illuvium, and Gods Unchained also utilize Chainlink.
The $LINK Token
$LINK is the native token of Chainlink. It is based on Ethereum and is used to pay the node operators, who provide and verify data for smart contracts.
But operators that supply misleading data will also be charged with $LINK. Moreover, these operators will lose their staked LINK as compensation to the smart contract creator.
|$52.88 (May 9, 2021)
|$0.148183 (November 29, 2017)
How to Buy LINK?
- To start buying, selling, holding, and trading LINK on exchanges, users should create and verify an account by providing requirements such as personal information, an email address, a phone number, a valid ID, and a selfie.
- Choose the LINK trading pair; it could be LINK/USDT, LINK/USD, LINK/PHP, or others.
- Buy LINK by typing the desired amount.
- Check the crypto wallet of the exchange, select the transfer or send option, and type in the wallet address of the receiver. Make sure that the wallet is compatible with LINK.
- Check if the transaction is complete. Usually, the amount has already been loaded to the wallet.
How to Stake LINK?
- To stake $LINK, go to Chainlink’s staking platform.
- Connect the wallet to the website.
- Click on the “Stake” button and enter the amount of LINK.
- Confirm the transaction and wait for it to be processed by the Ethereum network.
- Check the staked LINK balance and estimated rewards on the website.
This article is published on BitPinas: How to Buy LINK | Chainlink 101 Philippines Guide
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Original article follows that may contain outdated information:
Chainlink is a decentralized oracle network intended to bring real-world data into smart contracts. Why is this important? Building a decentralized app (DApp) requires on-chain data, off-chain data, and data storage. Chainlink is an oracle that pushes real world data to the decentralized app for its off-chain data. Without this data, only an approximate of 20% of DApps will work.
Demand for this type of activity is high, that’s why LINK, the cryptocurrency used in Chainlink is one of the largest cryptocurrencies by market capitalization
How to Buy LINK in the Philippines
Buy LINK on Coins.ph
LINK is one of the cryptocurrencies launched on Coins.ph, the leading mobile wallet in the Philippines on July 19, 2021.
1) Sign up with a Coins.ph account. (If you already have account and is already ID and selfie-verified, proceed to step 3)
2) Get ID and Selfie-verified.
3) Create a ETH/ERC-20 wallet on the app. The option should be immediately viewable once the app is updated to the latest version. (If you cannot see this option, update your app to the latest version.)
4) To buy LINK, just “slide” to convert “Php” to “LINK.”
What is Link?
The cryptocurrency LINK is the network’s native token to be used to pay node operators, who in turn, stake their LINK to participate and provide data services.
Who founded Chainlink?
Chainlink was founded by Steve Ellis and Sergey Nazarov in June of 2017, the same year they raised $32 million of ETH. Chainlink’s pitch was to connect verified external real-world data to smart contracts.
What are the use cases of Chainlink?
Chainlink is DeFi’s Middleman
Decentralization would mean that smart contracts must find a way to access real-world data which are not from a centralized data feed. Chainlink solves this problem by providing on-chain and off-chain solutions. For on-chain, a series of smart contracts allow developers data from the oracle nodes from off-chain. For off-chain, it becomes the middleman that connects real-world data and data between cryptocurrency blockchains
LINK as payment
Link is used by developers to pay for oracle nodes for data feeds. In turn, the nodes have to stake it for high quality data feeds. They may also use one or more oracle nodes via a bidding process.
Chainlink / LINK as Proof of Reserves
BitGo, a leader in institutional digital asset custody, has partnered with Chainlink for their Proof of Reserves. This means that BitGo’s “wrapped Bitcoin” (WBTC) is really 1:1 to BTC. Wrapped Bitcoin is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain.
Chainlink’s integration to games
For games, there’s Chainlink’s Verifiable Random function which is required by random number generation used in some video games.
LINK as collateral
MakerDAO, a decentralized autonomous organization, made LINK a collateral option to the DAI stablecoin last 2020.
Flash loan Protector
Flash loan is a type of uncollateralized lending in decentralized finance that allows one to borrow instantly and easily, provided that they return the borrowed amount in one transaction on the blockchain. DApps were attacked by exploitative flash loans by taking advantage of price differences in the market due to the dependence on centralized data. Using Chainlink’s on-chain and off-chain components, they can be safe from this manipulation of prices and be safe from flash loans.
Chainlink’s partnerships and integrations
Chainlink has expanded its ecosystem and is now providing an approximate of over 100 price feeds to over 300 smart contracts and DApps. After ETH’s integration, Polygon, Binance Smart Chain, and XDAI followed the native integration of Chainlink.
Chainlink Community Grant Program
This grant program, like other grant programs in DeFi space, is rewarded to developers who will partake in the development and integration of Chainlink to more products and services.
- SmartPy: native integration of ChainLink price feeds on Tezos
- BlockSpaces and LinkUp: native integration of ChainLink price feeds on NEAR Mainnet
- Native integration of ChainLink price feeds on Solana
- Protofire: Native integration of ChainLink price feeds on Avalanche
- LinkMarine: ChainLink News Website
Other things to consider about Chainlink
Oracles is an incredibly competitive space and thus Chainlink has a lot of competitors. And while Chainlink is well-positioned to capitalize on its dominance, many are arguing about its success. One notable investment group — Zeus Capital — wrote a 65-page report criticizing Chainlink and its founders.
There were also reports of Chainlink trying to gain monopoly in the market where it serves. Finally, with a company behind Chainlink and LINK, the potential for challenges about Link’s status — whether it is a security or not — could happen.
Considering all these, it does not mean that Chainlink has not proven itself in providing the best solution for off-chain data that DApps needs. Their expansion to different networks shows their oracle’s necessity. With their Community Grant Program, this expansion and development is guaranteed to further boost the Chainlink platform. Not only that, but Chainlink’s partnership with the World Economic Forum and Libra shows that they may be partnering up with public and private institutions which is great news for DeFi’s expansion.
This article is published on BitPinas: How to Buy LINK at Coins.ph! | Chainlink 101 Philippines Guide