ChainLink – An Overview
This article explains how to buy, sell, and trade LINK on KoinBX, an emerging global crypto exchange app. Founded by Sergey Nazarov in 2017, Chainlink (LINK) is a blockchain abstraction layer that enables globally connected on-chain smart contracts. Chainlink allows blockchains to securely interact with payment gateways, external data feeds, and events through a Decentralized Oracle Network (DON), for providing the critical off-chain information required by complex smart contracts to become the leading form of digital agreement.
Chainlink is a decentralized system of nodes aimed to connect data and information from outside the blockchain to on-chain smart contracts. Chainlink provides a secure, decentralized, and tamper-proof “blockchain-middleware” to access multiple inputs and outputs required by a complex smart contract. Chainlink intends to drive the development of valuable smart contracts through simple and secure access to substantial off-chain resources.
A huge open-source community of security auditors, researchers, data providers, smart contract developers, node operators, etc., drives the Chainlink Network. It also concentrates on ensuring the decentralized participation of all node operators and users. Users can pay Chainlink node operators for their services by using LINK tokens that provide an incentive to users to create more tokens.
The node operators stake LINK tokens in the network to indicate their commitment to the network and provide rewards for their good service. LINK is also used for network governance. But, nodes with a higher stake are more probable to be chosen to satisfy data requests and earn LINK tokens for their services. Similarly, the Chainlink network penalizes faulty or dishonest nodes by taxing their stake.
Uniqueness of LINK
Chainlink is one of the first networks to enable the integration of off-chain data into smart contracts attracting reliable data providers. With numerous trusted partners, Chainlink is a major player in the field of data processing. Data providers can enable access to data directly to Chainlink, but monetizing the information.
Being a decentralized network, LINK allows users to become node operators and earn revenue by running essential data infrastructure necessary for the success of the blockchain. Chainlink uses a huge collection of node operators to collectively control a wide range of DON, which currently secure billions in value for leading DeFi applications.
How will Link Staking work?
Currently, Chainlink depends on a restricted number of trusted nodes despite being decentralized. But LINK staking intends to remove this concern. LINK staking will introduce rewards and penalties to incentivize the appropriate operation of the Chainlink oracle network. It will also improve the capability of node operators to receive tasks and earn fees within the Chainlink network.
In this Chainlink system, participants will lock up their LINK tokens as collateral that can be either taxed or slashed if a node misreports data. The LINK tokens taxed from fraudulent validators will be redistributed as earnings to honest validators.
The Chainlink developers introduced this crypto-economic security to reduce network attacks. This is a similar gamification strategy that blockchain networks depend on. Correspondingly, LINK holders that do not run their own node can take part in staking by delegating their tokens to a trusted node operator. Chainlink developers estimate that the staking program will offer a 5% return initially from a combination of the Treasury and fees paid by users, and it will ultimately depend on only fees earned by the network.
The participation of community members in staking will incentivize node operators to remain honest. Participants can choose delegation of their stake through reputation scores given to node operators that consistently provide valid data feeds.
Being an Ethereum-based ERC-20 token, Proof-of-Stake (PoS) consensus mechanism secures the Chainlink system. Unlike the Proof-of-Work (PoW) consensus, PoS relies on the number of staked tokens for selecting node validators. PoS protocols require less power consumption than PoW systems. PoS models are becoming popular as they require less electrical power and are easily scalable. While PoW has proven as a reliable consensus mechanism, Ethereum and all other ERC-20 tokens have been increasing rapidly.
Advantages of ChainLink
Chainlink has several benefits for its users to attract more consumers.
- Allows secure interaction between smart contracts and off-chain data
- Ensures compatibility between blockchain networks and allows the inclusion of payment services
- Potential to allow smart contracts that mimic present financial agreements
- Increase the security and accuracy of the information
- Financial reward for securely providing reliable data into Chainlink
Token Name: Chainlink
Ticker Name: LINK
Total Supply: 1,000,000,000 LINK
Circulating Supply: 538,099,970.45 LINK
How to Buy LINK with INR and USDT?
Follow the below steps to buy LINK,
- Signup with KoinBX.
2. Fill in the required details to create an account.
3. Complete your KYC verification process.
4. Add your bank account.
5. Deposit Fiat to your KoinBX account.
6. Click the Buy option to buy LINK with INR & USDT.
How to Sell LINK?
Follow the below steps to sell LINK,
- Signup with KoinBX.
2. Complete your KYC verification process.
3. Link your bank account.
4. Click the Sell option to find a buyer for LINK.
Once a buyer for LINK is found, you can start selling LINK with Indian rupees (INR) & Tether (USDT).
How to Trade LINK?
Click the below link to start trading:
Start trading LINK anywhere and anytime with the great trading experience with KoinBX Android and iOS app.
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