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Chainlink: Connecting Crypto To The World

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@rob23
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Chainlink is a crypto that I have been hearing about regularly for a long time, but never really did much research on. I knew that it was very popular and was integrated with lot of projects that have been coming out, but never really bothered to figure out what it actually did. I figured I could do a little research on it and I decided to share what I found out!

What Is Chainlink?

Chainlink is what is known as an oracle network. Essentially, Chainlink uses nodes to link real world data and statistics to predetermined smart contracts on their network. So by taking data that is off chain and linking it to the security of their blockchain, Chainlink enables a lot of innovation for users in terms of what kind of smart contracts are able to be created.

Here is a chart looking at the process that powers the network:

Types of data that are publicized on their site are supply chain data, commodity price data, market price data, weather data, sports data, entertainment data, medical data and more.

This data can be used to program smart contracts that interact with and are triggered by real world events. The use cases are limited only to what is able to be tracked as data... So just about everything.

Who Uses Chainlink?

Four groups that are featured on Chainlink's website as users of the oracle protocol are Aave, Synthetix, Yearn.Finance and Celsius.

Additionally their data is used by groups like Coingecko, Binance, Huboi and even groups like T-Mobile. Groups also have the option of selling their existing data and API's to the Chainlink network or integrate their existing platforms with Chainlink's oracle network.

Where Does LINK Get It's Value?

The Chainlink token is used as collateral on the network for node operators. The value of the token is derived essentially from the value of the data that is being transported and accessed on chain. There are rumors that in the future, the token will provide holders dividends that come from the profit of the nodes without even having to run a node itself.

Some people think that the data market could be one of the biggest markets of the future, and Chainlink is positioning itself quite well to be massively involved in that market. We see products like Google Cloud or Amazon Web Services collecting massive amounts of data every day to be monetized and used in business. If we are to see data collection follow the path that we see social media heading (decentralized web 3.0) then we will want to see decentralized networks such as Chainlink doing the collecting and keeping personal privacy in mind.

Where To Buy Chainlink?

This is one of the most easily accessible cryptocurrencies on the market right now. It is available on hundreds of exchanges according to Coingecko including:

  • Binance
  • Coinbase
  • Huboi
  • Bitfinex
  • eToro
  • Kraken

This is not financial advice telling you that Chainlink is a good buy or that it will be the oracle network that ends up controlling the majority of the data market, but it is a very interesting protocol in my eyes for the amount of utility it has the number of partners it is acquiring. Might be worth some research in the future!

@mariosfame gif once again, I love it

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