Chainlink (LINK) a Gold Standard Web3 Services Platform

gold standard for web3
Spread the love

Chainlink (LINK) is a cryptocurrency and technology platform that allows non-blockchain enterprises to safely connect with blockchain platforms. It acts as middleware that connects blockchain-based smart contracts with external data, such as baseball scores or stock prices. The LINK currency of Chainlink pays network operators and serves as collateral for smart contract agreements on the network. 

Chainlink is a decentralized oracle network or blockchain abstraction layer. By using blockchain technology, it can securely enable computations on- and off-chain, supporting what it calls hybrid smart contracts and cross-chain interoperability protocol. The Chainlink blockchain is hosted on the Ethereum platform that uses the proof-of-stake operating protocol. Additionally, Chainlink is an open-source blockchain project, which means that anyone can view the project’s code and contribute.

Chainlink’s trademark was registered in the Cayman Islands on 2019-03-12, the corporation created being Smartcontract Chainlink Sezc Ltd.

Understanding the Core

Chainlink is a decentralized oracle network that operates on a blockchain platform. It was launched in 2017 and serves as a networking tool that connects blockchains to external systems. This connection allows smart contracts to execute based on inputs and outputs originating from the blockchain. In comparison to traditional oracles that are centralized, Chainlink decentralizes the process of moving data on and off blockchains through “hybrid smart contracts.” 

The LINK tokens play a crucial role in the Chainlink network as they are used to reward Chainlink network operators for retrieving data from off-chain feeds, formatting data into accessible formats, and performing off-chain computations.

The Chainlink blockchain can support the secure sharing of inputs, outputs, and computations. Some features of Chainlink include:

  • Supporting decentralized data feeds: It is possible to collect and process data securely from various sources to be used for hybrid smart contracts.
  • Providing verifiable sources of randomness: Chainlink can be utilized by applications like games that need cryptographically secure randomness.
  • Enabling automation: Chainlink’s smart contracts are capable of automating vital functions and tasks that are event-driven. This feature is highly beneficial for companies operating at an enterprise level.
  • Supporting cross-blockchain interoperability: Chainlink enables interoperability between blockchain platforms, facilitating the exchange of messages, tokens, and specific actions.
  • Build on ERC677: Chainlink’s LINK token is an ERC677 token, an extension of ERC-20. 


Chainlink was founded in 2017 by Sergey Nazarov and Steve Ellis. They cooperatively wrote a white paper that introduced the Chainlink protocol and network along with Cornell University professor, Ari Juels. The primary aim of Chainlink is to serve as a “bridge” between blockchain and off-chain environments. The network officially launched in 2019 and provides services to smart contracts.

LINK funding

In September 2017, Chainlink conducted its Initial Coin Offering (ICO) with a hard cap of $32 million. The ICO originally offered LINK at a rate of $0.09 per coin with a 20% bonus based on the timing of the investment. The subsequent public sale sold LINK at a rate of $0.11 per token. In total, both sales distributed 350 million LINK to the public. Initially, 1 billion LINK were issued.

As of now, Chainlink has raised more than $120 million in funding from investors such as Andreessen Horowitz, FTX, and Binance Labs.

LINK’s key partnership

  • In 2018, Chainlink integrated Town Crier, a trusted execution environment-based blockchain oracle that Juels also worked on. Town Crier connects the Ethereum blockchain with web sources that use HTTPS.Chainlink integrated DECO in 2020, which is a project co-created by Juels of Cornell University. DECO is a protocol that enables users to prove the credibility of their information to a blockchain oracle, using zero-knowledge proofs, without disclosing sensitive information like birth dates.
  • In April 2021, Chainlink released a second white paper called “Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks”. The paper proposes a vision for enhancing the capabilities of decentralized Oracle networks by including hybrid smart contracts. These contracts utilize on-chain code and off-chain services provided by Oracle networks, thereby expanding their role.

Where Chainlink makes the cut

  • Chainlink has a brilliant team of developers 
  • Chainlink has become a dependable and resilient project, having facilitated more than $7.7 trillion in transactions and over 1,700 integrations.
  • Chainlink Labs provides concrete product solutions for all major computational problems. The amount of innovation taking place at the product level is amazing. The company has planned to launch several new products in the near future, such as CCIP, FSS, VRF, CL Functions, Automation, DECO, POR, CF BIRC, and CF DACS.
  • Flashloans are a serious threat to the economic security of DEFI protocol users, causing financial instability. However, Chainlink has developed a solution to address this issue. Chainlink uses asynchronous data aggregation and publication methods, making it resistant to Flashloans. By spreading out the sequencing of data gathering and publishing, the Chainlink DON ensures that any potential intra-block manipulation is circumvented. This prevents execution of the manipulation, even if it were attempted within a single block.

Where Chainlink  misses out

  • Chainlink is a technically complex project, which is not necessarily a weakness. The team behind Chainlink is aware of its complexity and is focused on communicating its value proposition clearly to its target audience. However, because the project requires a high level of technical knowledge to fully understand, many potential retail investors may choose not to invest in it as they may not be able to comprehend its full importance.

Leave a Reply

Your email address will not be published. Required fields are marked *