LINK currency does not stop rising, as for its ecosystem, it is developing significantly in the world of cryptography and the blockchain industry, and in order to shed more light in our Arab world about what Chainlink is and its cryptocurrency LINK, we offer you an easy and simplified explanation of what is Chainlink ChainLink and LINK coin, a link that takes you to invest in that LINK coin.
Currently, Chainlink cryptocurrency is becoming increasingly popular. The main reason for this is the extensive development of smart contracts, which are among the major achievements in the world of modern technology. With the advancement of smart contracts this has a positive effect on chainlink's popularity.
What is ChainLink?
ChainLink is a decentralized oracle network that provides real-time data for smart contracts on a blockchain. LINK is the digital asset token used to pay for services on the network.
To understand the benefits of ChainLink and how it works, you need to understand some key, interrelated concepts. Let's start with smart contracts.
Smart contracts are predefined agreements on a blockchain network that evaluate information and automatically implement them when certain conditions are met. Group mobilization, for example.
If a certain amount of Ether is deposited in a smart contract by a certain date, the payment will be released to the fundraiser - if not, the payment will be refunded to the donors.
Due to the presence of smart contracts on the blockchain, they are fixed, cannot be changed and can be verified so that everyone can see them, which ensures a high level of trust between the parties as they accurately reflect the stated standards of the agreement and will be implemented if the conditions programmed into the contract are met.
For smart contracts to forge agreements that go beyond those related to the data on the blockchain, they require off-chain data in a sequential format. The difficulty of linking external sources of information to blockchain smart contracts in a language that both understand is one of the main limitations in how smart contracts are widely used.
This is where the oracle comes into play. An oracle is a program known as middleware, which acts as a middleman, translating data from the real world into smart contracts on the blockchain.
Chainlink is a decentralized oracle of smart contracts and, in general, a complete blockchain, that is, they are special communication tools between different blockchains or data from the outside world. In other words, Oracles is an middleware that provides access to external data for smart contracts.
The Oracle is centralized and problem creating and the smart contract is decentralized and secured on the blockchain aims to solve the central vulnerability. If Oracle has its flaw that it is centralized and not in line with the laws of decentralization, how will you know if its data is accurate? What is the benefit of a secure and trustworthy smart contract over a blockchain if the data it feeds is in doubt?
So, let's quickly recap between smart contracts and Oracle:
- Smart contracts are fixed and verifiable contracts that are executed automatically under IF / THEN algorithms when conditions are met.
- The data that defines these conditions has traditionally come from the blockchain.
- More recently, Oracle was introduced into the coding ecosystem to bring data off-chain to smart contracts on the chain.
- However, centralized Oracle data diminishes the benefits of smart contracts on the blockchain because they may be unreliable or unseen threatening decentralization.
ChainLink system is a decentralized network of nodes that delivers data and information from sources outside the blockchain to smart contracts on the blockchain via Oracles.
This process, along with more secure devices, eliminates reliability issues that might occur if only one central source is used.
The process starts on a smart contract enabled blockchain when the smart contract requires data. This smart contract places a request for the contract, for information.
Chainlink records this request as an event, and in turn creates a smart contract against the Chainlink Service Level Agreement (SLA), also on the blockchain, to get this data off the chain. Chainlink SLA nodes create three contracts: the reputation contract, the requisition matching contract, and the bundling contract, all from ChainLink.
Chainlink reputation nodes validate the Oracle provider's tracking history and performance log, then evaluate and ignore indisputable or untrustworthy nodes.
Chainlink's requisition matching contract delivers the requested contract request to the Chainlink contract and takes its bids on demand (when the demand contract does not choose a specific set of nodes) - then determines the correct number and type of contract to fulfill the demand.
Chainlink's collecting node takes all the data from the selected oracles and verifies it, for an accurate result.
Chainlink nodes then take the demand contract request for data and use Chainlink Core to translate that request from the programming language on the blockchain into an off-block programming language that a real data source can understand. This newly compiled version of the request is then directed to an external API to collect data from that source. Once the data is collected, it is translated back into the blockchain language by Chainlink Core and sent to Chainlink's aggregation nodes.
ChainLink nodes can validate data from a single source and from multiple sources - and it can reconcile data from multiple sources.
So, if five nodes provide one answer from the weather sensor, while two other nodes provide a different answer, the ChainLink nodes will know that these two nodes are dishonest and defective, which will cause their answers to be ignored. In this way, Chainlink nodes can validate data from one source.
ChainLink aggregation nodes can repeat this validation process for multiple sources, then reconcile all validated data by averaging them in one piece of data. Under certain circumstances, all answers cannot be averaged but for simplicity we will not go any further here.
Regardless of the data source, Chainlink has created a way to reliably and efficiently deliver accurate data for smart contracts on a smart contract enabled blockchain.
LINK coin in ChainLink
Contract holders required to use LINK to pay Chainlink node operators for their work. The prices are set by the Chainlink node operator based on the demand for the data they can provide and the current market for that data.
Chainlink node operators also use LINK to participate in the network, node operators must deposit LINK with Chainlink to demonstrate their commitment to the network and incentivize good service.
Chainlink reputation nodes take into account node quota size (among other criteria) when matching nodes to data requests. Thus, the contract with the largest share of the order will likely be selected (thus earning LINK for its services). Chainlink also penalizes defective or dishonest nodes by taxing their stake in LINK for poor service.
LINK coin is built on Ethereum to ERC20 token standard . It can be bought and sold for any digital or local currency, the value of the currency or LINK token.
Where and how to buy and invest LINK coin
There are many exchanges that support LINK currency for investment and trading, you can buy Chainlink coin from several cryptocurrency exchange platforms, and the best of them is the Binance platform.
On the Binance exchange, you can buy LINK cryptocurrency for fiat money with your international bank card and also via cryptocurrencies. What you need is to have a cryptocurrency in your wallet such as Bitcoin or a stable currency such as USDT . There is an explanation of how to buy the cryptocurrency in this topic:
The principle of LINK buying and trading is as follows:
You must register the Binance platform.
Invest and trade in LINK now through the Binance platform , you do not know how, here is a complete explanation of the Binance platform: Explanation of the Binance platform for safely trading cryptocurrencies.
After registering on the platform, and your Spot wallet balance from any other cryptocurrency is available, we search for a pair of your currency against the LINK coin.
And with this we choose the pair and do the buying process, by setting the purchase price at a reasonable amount, or buy directly and at the same time at the market price.
If you only want to buy LINK coin without doing anything through Binanc, do not change or adjust anything, just limit the purchase at the market price and not Limit, as it is located in the picture, the purchase process is in Limit, you are the one who sets the price Buying and if you will wait to visit the price and buy the currency, your order will appear at the bottom, and when the price goes down to the specified price, the LINK coin will be purchased automatically.
You can cancel the purchase order at any time as long as the process is not completed.
This is how the process of buying the cryptocurrency against a cryptocurrency is done, and also in the same way you can trade, meaning when you want to trade the currency, just set the price higher than the current currency, and higher than the price at which you bought the LINK currency, and press Sell. Your order will be saved until the price reaches the selling price that you have set, for the sale to take place automatically.
Important note: What was explained is the simplest thing you can do on the Binance platform, and you can do a lot on the platform.
Comments
Post a Comment