What is Chainlink crypto? Or in its everyday name – LINK? Sitting in the top 10 altcoin list of 2020, LINK doesn’t seem to get enough attention. According to the Chainlink website, it is a “network that provides reliable tamper-proof inputs and outputs for complex smart contracts on any blockchain.” But what exactly does that mean?
Chainlink Crypto Explained
You may have heard of “oracles.” We don’t mean those soothsayers who lived in Delphi centuries ago and acted as a connection between humans and their perceived gods. We’re talking about the data sources on a blockchain that connect the blockchain with the real world.
Any errors in the data an oracle provides can have severe consequences in the real world. So Chainlink steps in to allow oracles. The Oracles provide essential information such as price feeds, event results, and links to traditional payment systems without sacrificing decentralization or security.
How they did it
By helping oracles stay secure, Chainlink is an essential and significant piece of blockchain infrastructure. But how is it done? The base for activity is a collaboration with Kadena. Kadena provides a platform for a hybrid blockchain, and Chainlink delivers the oracles.
According to Sergey Nazarov, co-founder of Chainlink, “The Kadena ecosystem can begin developing next-generation smart contracts that depend on real-world data.”
The intersection between blockchain and the real world was an extremely vulnerable point in blockchain technology. It is this niche that Chainlink took over. It is their solution that strengthens the entire system and prevents data from manipulation.
Thus, not precisely an altcoin, but on the altcoins list as it contributes to altcoins in a big way.