What is Chainlink?
Like other coins, Chainlink or LINK coin is a type of Crypto operating on an intermediary Blockchain platform. This operation method helps provide applications against scam and counterfeit third parties. At the same time, it helps digital industry platforms develop more strongly.
To create linkage between smart contracts and many other types of Blockchain, the development team built Chainlink as a tool to support users in data analysis software applications.
Chainlink developers aimed to become a decentralized Oracle platform for existing Blockchains.
How Chainlink Works
Chainlink’s operation method is quite new; users can understand this process through two mechanisms:
On-Chain
Under this mechanism, Chainlink processes smart contracts directly on the chain. User data requests are handled by data management contracts.
This means if users access personal data outside the system, the platform will send a personal contract access request to Chainlink. These requests will be processed by the Blockchain in their own way.
Currently, the platform has three main types of contracts for managing system requests:
- Aggregating contract: Used to consolidate all data to find the most optimal and effective answer.
- Order-matching contract: Acts as an agreement to gather bids and record parameters, thereby selecting suitable bid levels.
- Reputation contract: Monitors the performance data of service providers.
These three contracts work closely together, each with its own role: initial selection, reporting, and finally consolidation.
Off-Chain
The next is the Off-Chain mechanism, which connects to the ETH network. This mechanism helps aggregate data from the initial sources based on previous contract requests.
Once all necessary data is gathered, the Off-Chain mechanism automatically processes data through a code called Chainlink Core. After processing, the data is sent back to the on-chain governance contract for verification with other results.
These are the two main operational mechanisms of Chainlink. Their harmonious combination results in a powerful Chainlink functioning.
Some Additional Information About Chainlink
As known, Chainlink is an ERC-20 standard token developed on the Ethereum Blockchain platform. It is expected that the total supply of LINK tokens will reach 1,000,000,000 LINK. The planned distribution divides this into three groups: 35% sold to users, 35% allocated to node operators to develop the ecosystem, and 30% retained by the issuer for future projects.
In September 2017, Chainlink conducted its first ICO, selling 350 million LINK tokens and raising 32 million USD, representing about 35% of the initial total supply.
Users can also find additional information about Chainlink on its official website or through forums, Twitter, or White Paper, etc.
Current Price of Chainlink
According to Vietnam-ustrade.org’s collected data from CoinMarketCap on July 13, 2020, one LINK coin is currently valued at 7.71 USD, ranking 10th among the hundreds of cryptocurrencies worldwide.
Buying, Selling, and Safely Storing Chainlink
Currently, LINK has a widespread presence, and this coin is an ERC-20 token. Therefore, it’s not too difficult for users to find safe and reputable places to buy, sell, and store Chainlink.
You can find places to buy and store LINK coins at:
- Exchanges: Most exchanges are equipped with wallet features. So if you often trade, this is an effective choice. However, avoid storing too many coins on exchange wallets to prevent theft or scams.
- Hardware wallets: Popular hardware wallets like Ledger Nano S, Nano X, ImToken, Trezor, etc., can store all standard ERC-20 tokens.
- Software wallets: It’s easy to find secure software wallets in today’s digital age. Some reputable wallets include MyCrypto, MyEtherWallet, MetaMask, etc.
Additionally, users can find other wallet options through mobile apps such as Trust Wallet, Cobo Wallet, etc. However, all storage and trading options have pros and cons, so users should choose location based on their specific needs to ensure safe and efficient Chainlink transactions.
Conclusion
In summary, Chainlink is a very promising coin today, thanks to its clear operational mechanism and ambitious goals. However, whether to invest depends on the individual user, as the crypto market can be highly profitable but also risky. Caution and thorough research are essential before making investment decisions. We hope this article from Vietnam-ustrade.org provides all the necessary information to help users make effective investment choices.
