ChainLink (LINK) Permits Smart Contracts & Many Payment Methods

ChainLink (LINK) Permits Smart Contracts & Many Payment Methods

The ChainLink (LINK) is blockchain middleware which permits smart contracts to approach key off chain sources like data supply, many web APIs, and con

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The ChainLink (LINK) is blockchain middleware which permits smart contracts to approach key off chain sources like data supply, many web APIs, and conventional bank account payment.

By granting smart contract secure access to these important sources, ChainLink lets them to mimic real-world contracts that require outside proof of performance and require to make paying in widely available pay methods.

The Chainlink team believes that the main problem of modern smart contracts is insufficient interaction with the outside world. They believe that a secure network of oracles can solve this problem, which is what their product is.

In fact, Chainlink wants to increase the practical applicability of smart contracts in certain types of applications. This means that their market will be suppliers and users of smart contracts. This is a fairly narrow niche, but this does not mean that they will not succeed. Now in the world of detachment, all the developments are highly specialized, but the number of ways to use these technologies is growing rapidly, including the markets that need smart contracts. They cite several types of smart contracts, the development of which they will primarily deal with: securities, insurance and trade finance.

The Chainlink system itself consists of two parts: a block and a non-block system. These two parts communicate with each other in the process of work. The system ensures the correctness of the information provided by the oracles and allows them to work independently of each other. Oracle can be, for instance, the New York Stock Exchange, which will provide accurate information about the auction, or Visa, which will deal with the processing of transactions and will provide reports on this. Chainlink intends to assemble all these oracles in one system while acting as a conductor for logging on to the system.

To pay for non-business services, Chainlink will create a LINK token. A token is needed to perform this function, so the demand for it will depend directly on the number of users. Determine the real demand will be possible only after the start of the system. If an insufficient number of users join the system, then such a token will not have intrinsic value, even if it has some speculative value.

In a total tokens will be released. There is no information on the distribution of tokens yet, which, unfortunately, does not allow analyzing this important aspect.

Now the Chainlink team consists of two people: Sergei Nazarov and Steve Ellis. Most likely they will hire workers in the process of product development, but the approach is doubtful.

The cryptocurrency success depends entirely on the demand for its token. Indeed, existing smart contracts do not have sufficient flexibility, and Chainlink can become one of the first companies to provide reliable sources of external information for smart contracts.

Even if Chainlink cryptocurrency becomes popular over time, for a long time there can be no demand for tokens, which means that you will not be able to make fast money. In addition, so that the oracles themselves are motivated to join the network, the token must be of value.

This is one of those tokens, the exchange rate of which can take off if the product is successful. Developers are not going to change existing products, but their own product can perfectly fit into the market, which is an undoubted plus.