Chainlink links cryptocurrency to the real world

Chainlink links cryptocurrency to the real world
Chainlink (LINK) was recently named by the World Economic Forum as a 2020 Technology Partner. Besides being recognized by the World Economic Forum, the price of LINK Token has gained over 1 700% since its low in 2018. Whilst the crypto community is awestruck by the price increase, it is well worth it to take a closer look at what the project entails. In a nutshell, Chainlink links cryptocurrency to the real world.

Missing link between cryptocurrency and real world

Thanks to blockchain technology’s cryptography coding, the crypto industry is decentralized. However, each blockchain operates on its own. Thus, it is fairly difficult for blockchains to communicate with the real world to get accurate information across. It comes down to credibility of sources and accuracy of the provided information. It is a known fact that information that is on a blockchain is secure and cannot be tampered with. So, how can one guarantee accurate information being sent from the real world onto a blockchain? This is where Chainlink comes into play.

Chainlink (LINK) uses oracles to get information in and out of the blockchain in a secure, decentralized and trustworthy manner. Oracles are the source of data that is used to communicate between the real world and the blockchain. One can say oracles are a network of nodes that act as ‘blockchain middleware’.

The LINK Token is an ERC-20 token and is primary used as a reward for access to external data sources. In light of Smart Contracts, they depend on instructions to execute transactions. When operating in the context of a blockchain, Smart Contracts require the right access to data that allows them to execute the given contract. So, if the data is off-chain or in the real world, the Chainlink oracle will serve as the link or bridge. Previously, oracles were centralized and thus data could not be verified for use on the blockchain.

A good example of Chainlink’s use case is a real-world money transfer from Swift into the blockchain with Chainlink. Once a payment has been received, Chainlink can send a proof of payment to Swift. In doing so, it minimizes potential points of failures and allows for seamless interaction between fiat and crypto.

LINK to the moon

The LINK Token has been one of the best performing cryptocurrencies over the last two years. Since its low in 2018, LINK rallied by 1 700%. This is mainly due to new partnerships with Swift, Google, Synthetix and Polkadot to name a few. Recently, Huobi, a blockchain service network that is sponsored by the Chinese government adopted Chainlink’s decentralized oracles.

AltCoinTrader to list LINK

AltCoinTrader is constantly looking for coins that reflect the values of South Africa’s favourite exchange. Tokens that have real world usage and aim to improve the way business is conducted and money changes hands. The LINK token is one such a token that acts as a bridge between the crypto world and the real world. Especially since LINK is used in DeFi as a transparent price feed to further develop the industry. DeFi platforms need accurate price feed to ensure the value of collateral, to issue and settle loans and calculate interest payments.

Keep an eye on AltCoinTrader social media for further announcements on the listing of LINK token.