Should You Buy Chainlink and How Does it Work?
Chainlink is a type of cryptocurrency that is known by the ledger LINK.
Chainlink aims to use a worldwide connection of computers in order to allow for smart contracts and data to run on top of blockchains.
Therefore, the primary purpose of Chainlink is to ensure that secure transactions can be made online, whether they are financial, data or asset-based.
Chainlink works by providing accurate data information by way of oracles, with a reputation score given to each element of the data.
Like many similar cryptocurrencies, Chainlink uses game technology to reward users who provide accurate, correct data by providing them with the cryptocurrency for Chainlink, otherwise known as LINK.
Chainlink was first launched in 2017 by Sergey Nazarov and Steve Ellis, and has so far made big waves in the cryptocurrency marketplace, raising $32 million in their first coin offering based on the initial release on 1 billion ICO coins.
What are the Use Cases for Chainlink?
There are a number of different use cases for Chainlink, with the architecture of Chainlink made up of three varieties of smart contracts. These are –
Reputation Contract – this type of smart contract checks the integrity of each oracle in the blockchain. The smart contract can do this easily by either checking the amount of requests that have been completed, the time of response or the amount of LINK staked by the oracle in question.
Order Matching Contract – this kind of smart contract simply matches bidding oracles with the most appropriate smart contract SLA, or service level agreement.
Aggregating Contract – these smart contracts collate oracle data and match them with the best smart contracts as required.
Chainlink is currently the number one oracle network as it is able to run a series of parallel decentralised oracle networks.
This enables Chainlink to provide a wide variety of simultaneous services. Chainlink can also be used to access VRFs in order to provide secure random number generations, as well as DECO, in order to preserve the privacy of data, fair sequencing services and scalable aribitrum rollups for better security and solidity when building off-chain.