Chainlink is a decentralized oracle network that enables smart contracts to securely access external data sources in a decentralized manner. The platform provides data information for decentralized finance (DeFi) applications, including that of dYdX’s crypto derivative products. The network was developed by Sergey Nazarov, and co-founded by Steve Ellis.
3. Characteristics of Chainlink (LINK)
LINK is the cryptocurrency native to the Chainlink decentralized oracle network and has various use cases. The digital asset token is used to pay for services on the network. Firstly, it is used to pay node operators for the retrieval of data from the external data sources, turning it to blockchain readable format, off-chain computation, and uptime guarantees.
More so, LINK also aims to provide the cheapest way to transfer money in a fast-paced manner. LINK is an ERC20 token, with the additional ERC223 features. This allows the tokens to be received and processed by contracts within a single transaction.
Unlike other blockchains, Ethereum does not hand you a set of limited operations. Rather, it allows developers to create whatever programs they can conceive. Besides creating DApps, Ethereum is also being used as a platform to introduce other cryptocurrencies.