Chainlink has grown to become a renowned project with recent announcements of new price feeds for a variety of Blockchains.
Chainlink oracles could provide essential information like event results, price fees, links to conventional payment systems without the need to compromise security or decentralization.
Blockchain technology and its benefits have reverberated in different sectors, and for the crypto sector – it has become a necessary element that works in unison for the overall progress and development of the sector. The biggest virtue of blockchain is its decentralized nature and secure networks, but the problem is that each blockchain has its own universe. To get information from the outside world has opened a vulnerable spot because the need to trust a source outside the blockchain to provide accurate information can become daunting. This is where Chainlink enters.
The Chainlink network was launched in June 2017 by the for-profit company SmartContract with the first version launched in the same month. Its co-founders Steve Ellis and Sergey Nazarov later published its whitepaper in September 2017 and roped in Ari Juels as the advisor. The network next initiated an ICO, raising $32 million after selling 35% of the 1 billion unit supply of its LINK currency. Out of the remainder of the tokens, 30% were distributed to SmartContract for the inherent development of the blockchain and 35% was allotted to incentivize node operators.
How does Chainlink deliver its promises?
Chainlink solves the age-old problem of vulnerable and risky sources of information by offering something secure, trustworthy, and decentralized. Data sources between the blockchain and the ‘real’ world known as oracles, do not need to be a single point of failure for a smart contract program. Chainlink has generated a network of nodes to provide information to and from the Blockchain thereby creating a significant portion of smart contract infrastructure.
What needs to be known is that those points from where data enters the blockchain are also the points where it can be exploited and maneuvered and Chainlink’s seamless productivity creates value here. Its whitepaper mentions three principles to minimize the failure potential of oracles: (1) Distribution of data sources; (2) Distribution of oracles; and (3) Use of trusted hardware.
In order to improvise security for oracles or data feeds, it has acquired a start-up called TownCrier. With its technology, data provided to Chainlink’s oracles become more secure thanks to the ‘trusted-execution environments’ and extra secure hardware.
Latest from the world of Chainlink
Chainlink took to Twitter to make an announcement on Oct 31. This will be the quickest way to connect your smart contracts to the real world market prices of assets. Users will be able to integrate with its recently launched ADX/USD price feeds to expand DeFi support for additional markets like ADX.
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