ChainLINK is a product of the American company SmartContract, which optimizes smart contracts designed to provide quality interaction between conventional markets and the blockchain scope. The company also developed Chainlink crypto.
The project development team consists of several dozen people. The team is working to solve the problem of blockchain compatibility and modern methods of data transfer, mostly used in companies and organizations.
Smart contracts used to serve exclusively in the sphere of digital currencies, but now the situation has changed, and organizations that work in other areas are also striving to implement blockchain technology into their business processes.
LINK crypto developers are working on creating a network of oracles compatible with Bitcoin and other coins, based on which smart contracts will be executed to ensure stable operation and information transfer. For example, to get a loan through a smart contract, you need information about the terms of the loan and the borrower’s credit history. The data is requested, processed, and recorded using a decentralized ledger.
A blockchain can’t communicate with the outside world, just as smart contracts aren’t able to connect to the network independently. That is where the oracles developed by the LINK team come to the rescue. Oracles act as interlayers between smart contracts and blockchains. Thanks to oracles, communication with the outside world can be maintained.
As a rule, oracles are centralized services, which excludes the benefits of the decentralized nature of smart contracts. As a unique decentralized oracle, ChainLINK combines the security and reliability of smart contracts with a broad scope of data about the outside world.
The ChainLINK mechanism consists of two components:
- off-chain, which is a subnet of nodes of independent and unrelated oracles that collect information from the outside world and function according to specified metrics;
- on-chain, which sets the oracles fitting to each specific smart contract.
Thus, the conclusion of contracts and the exchange of information between companies is implemented via blockchain while ensuring the security and reliability of company data.
LINK is supported by many large crypto exchanges. You can buy crypto on the WhiteBIT platform.