Chainlink is much stronger than any one link…

How Chainlink works, what it does, and why it is important to the crypto ecosystem

As the cryptocurrency system evolves with an ever-changing network of supporting technology, you may wonder how all these systems work together. At CryptoBucks, we want to be sure our merchants and partners understand the new technologies we are incorporating into our app to make accepting any type of currency as easy as possible. Chainlink is the ultimate connector between off-chain and on-chain data, bridging blockchain transactions with real world computations for smart contracts. Here’s everything you need to know about Chainlink.

Chainlink was built as a decentralized network of connections that provide data from off-chain sources to on-chain smart contracts. This happens via oracles, a form of communication that links the blockchain to external entities. This process provides security hardware and helps solve previous reliability issues caused by data being stored in a single centralized source. Services on the network are paid through a native cryptocurrency token called LINK, in which network operators are compensated for overseeing smart contract agreements that are secure through collateral.

The goals of Chainlink

Chainlink continues to expand and evolve in support of blockchain technology as it moves from cryptocurrency to smart contracts. Developer teams are working to uncover new uses of hybrid smart contracts, which model the transition from email to the web to send and store data securely. Since most data records are not secured and stored off-chain, Chainlink offers countless opportunities to connect blockchains with off-chain data. In 2021, over $75 billion was secured through this network, covering over 1,000 projects, with over 460 million LINK tokens issued.

Why Chainlink matters

Chainlink is one of the most important projects in the blockchain world because it addresses a long-standing problem with smart contracts. Digital contracts often rely on external output to execute commands. However, for contracts to be useful, they must source data from independent and trusted sources. Chainlink leverages the blockchain combined with oracles to create an ecosystem of verified data providers.

While still relatively young, it’s proven to be an essential source of verified data for various blockchain projects. Most data providers use Chainlink to supply the necessary data and information to operationalize smart contracts. The overall benefits of smart contracts are:

• secure and dependable automation
• secure and reliable record keeping
• automated records

How Chainlink can be valuable to business

Smart contracts are one of the most critical functions of the blockchain. They allow digital contracts to be set up and linked to set outcomes. For instance, they can be connected to a specific business or personal interest outcomes such as baseball games, temperature readings, or events.

The wide variety of data sources poses a huge challenge to smart contract developers – programming these contracts is hard, but getting the correct data is also difficult. This is where Chainlink proves its importance. The network works with data providers to offer a large marketplace for all types of information.

Smart contract developers can use the Chainlink marketplace to source data for which they pay a fair market price. Data is supplied via oracles within the Chainlink ecosystem. This data can be accessed via APIs and used in several systems. The value of the network to business enterprises is the ability to: 

• monetize data and API services that enable smart contracts.
• operate backend infrastructure that provides computation for smart contracts.
• build smart contracts that support new and existing business processes.
• launch consumer interfaces that allow users to access smart contract applications on any blockchain

The future of smart contracts is here

Chainlink is an important step in creating real-world use cases for smart contracts. It enables off-chain data to be moved on-chain while maintaining the same integrity as data generated on a blockchain transaction. It will enable a future powered by smart contracts without relying on costly and sometimes fallible intermediaries. Using Chainlink enables total confidence in the smart contract code for all parties involved.

Technologies like Chainlink help CryptoBucks bring about a new era for payments and currencies that empower businesses and individuals alike to have the flexibility to conduct business in any currency the choose.

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