LINK (Chainlink)
LINK, or Chainlink, is a decentralized network of nodes that provide reliable and secure connections between smart contracts on the Ethereum blockchain and external data sources such as web APIs, payment systems and other off-chain services. The project was launched by Sergey Nazarov in 2017 with the goal of creating an open source infrastructure to bridge the gap between existing blockchains and their real world application.
The LINK token is used to pay for services within the Chainlink network, incentivizing node operators to provide secure connection services for smart contracts. It also acts as an asset layer within DeFi protocols such as Synthetix which use it to collateralize debt positions. As of 2021, LINK has become one of the most widely adopted crypto assets in the world having achieved a total market capitalization valued at over $22 billion USD making it currently one of top 10 most valuable cryptocurrencies by market cap size.
The ChainLink Network consists primarily of two components: Oracle nodes and payment channels which are both powered by its native token LINK. Oracle nodes offer data feeds from external sources into smart contracts while payment channels process transactions securely without requiring miners fees on each transaction enabling fast payments with extremely low costs attached compared to traditional banking methods. This makes it ideal for applications where speed and cost efficiency matter such as online gaming, finance platforms or IoT networks operating on blockchain technology.
