Important Questions About Chainlink Answered
If you have been watching the crypto charts lately, you would definitely be able to testify to the popularity of Chainlink. This recent popularity in the cryptocurrency can be traced to a variety of sources, including the firm’s unique business model. Unlike many other projects in the crypto space, Chainlink is not looking to compete against other cryptocurrencies but wants to bring a revolution to the entire community through its unique protocols.
How well do you know Chainlink? Could you consider adding it to your investment portfolio? In this post, we have brought answers to important questions you might have in your mind concerning Chainlink. Once you are done reading the post and you think Chainlink will make a great addition to your portfolio, head on to AnycoinDirect.eu to buy your LINK and begin your investment journey right away.
What is Chainlink?
Chainlink is a blockchain-based project that basically allows smart contracts to connect with the real world – thanks to its network of oracles. The project makes it much easier for smart contracts to connect to real-world data outside the chain. Therefore, Chainlink is considered a bridge between blockchain platforms and the real world.
Chainlink is decentralized, and so its data can be trusted since the network is not controlled by any single authority of government. Chainlink’s token is called LINK, and it is an ERC-20 token that is used as a payment method for oracle operations on the network.
What Problem Does Chainlink Solve?
The network is developed to bring a solution to one of the biggest problems that have plagued the blockchain sector for years. And that problem is how to communicate information to and from the blockchain. Originally, there are sensors, known as oracles, that take up this task. These oracles can be set to monitor virtually anything – from sports scores to weather, the value of stocks, and account balances. These are just a few of the things oracles can monitor.
Because of its potential to help blockchain interact with data outside the system, Chainlink is expanding the usability of blockchain. It is helping to provide a more reliable way to connect smart contracts to outside parameters when they need to.
What Should You Know About the History of Chainlink?
The project was created in 2014 by Steve Ellis and Sergey Nazarov as an ultimate solution to the problems facing smart contracts and blockchain. Chainlink was designed to help obtain information outside the chain without jeopardizing the security of the platform. In 2017, the ICO of the project was raised, and about $32 million was generated.
What Do People Use Chainlink for?
The primary purpose of the project is to help connect blockchain smart contracts with outside data. However, that is not the only thing Chainlink is used for. It can also be used to connect to any external API since its core can be easily translated from on-chain to off-chain language.
LINK also serves as a secure and fast way to make payment on the Chainlink network. It can also serve as a long-term investment from which investors can make quick money.
What Is the Current Price of Chainlink?
Chainlink has enjoyed good growth this year, and that has been one of the factors making the project more popular. Presently, as of the time of writing this post, the price of 1 LINK is $32.79.
How Do You Store LINK?
Right now, the LINK token exists on the Ethereum blockchain since it doesn’t have its own blockchain yet. The token presently follows the ERC-667 standard, and so, they are stored in any crypto wallet that seems to be compatible with Ethereum tokens, such as Trust Wallet and MetaMask.
What Drives the Price of Chainlink?
As a cryptocurrency, Chainlink also fluctuates in price. The price most times bows to the general market sentiment. However, there are certain situations where specific moves in the market can cause a major surge in the price of the cryptocurrency. A good example of this is the long-drawn price drop that happened in the early months of 2023. This drove many investors at the time to consider exploring DeFi, causing LINK price to shoot up to about $19.85.
So we can conclude that one major driver that determines where the price of Chainlink falls is demand and supply. When demand is high, the price of the crypto also goes up. And when supply is more than the number of demand, it consequently results in a drop in its price.
How Are New Coins Created?
Unlike most cryptocurrencies in the market, such as Bitcoin and Ethereum, Chainlink is not mined. But it can be earned as a tip or incentive for selling products or services outside the chain. You can also exchange other cryptocurrencies for Chainlink on certain crypto exchange platforms.
Final Note on Chainlink
Yes, there has been so much hype around Chainlink. But when you carefully look at the project, you will see that it is absolutely worth the hype. Chainlink provides a valuable solution to the crypto world as it extends the functionality of blockchain and helps developers enjoy a new level of flexibility. Because of these, Chainlink will likely continue to be one of the hottest coins in the market, and so, it is an investment anyone should consider adding it to their portfolio.