Last Checked 20 May 2024
Chainlink, launched in 2017 by Sergey Nazarov and Steve Ellis, aims to establish a reliable connection between blockchain applications and real-world data, revolutionizing the potential of smart contracts. While blockchain technology enables secure and transparent execution of these contracts, accessing data outside the blockchain poses a challenge. Chainlink solves this problem by acting as a decentralized oracle network. Furthermore, Chainlink allows smart contracts to connect securely to external data sources, payment systems, and APIs. With an extensive presence in sectors like decentralized finance (DeFi), insurance, gaming, and more, Chainlink has safeguarded the security of tens of billions of dollars. Moreover, it provides global enterprises and prominent data providers with a universal gateway to interact with all blockchains seamlessly.
The Chainlink network is secured by the proof-of-stake (PoS) consensus mechanism. Using PoS, the network uses the preferred consensus method since proof-of-work (PoW) consumes a lot more power. Although PoW is extremely reliable, blockchain networks such as Ethereum, Polygon, BNB Chain, etc., are setting a “new standard” by using PoS instead of PoW.
The LINK token is used to transact and purchase services on the Chainlink network. Also, it plays a crucial role in the network’s operations and serves three primary functions within Chainlink’s ecosystem: 1. Incentivizing Node Operators: LINK tokens are used as incentives to motivate node operators to perform tasks accurately and reliably. Node operators stake LINK as collateral, which acts as a form of security to ensure honest data reporting. The better the performance and reputation of a node operator, the more opportunities they have to earn LINK tokens. 2. Paying for Oracle Services: Users of the Chainlink network must pay LINK tokens to access the data provided by oracle nodes. This ensures node operators are compensated for their services and enables the sustainable operation of the oracle network. 3. Governance and Future Development: Holders of LINK tokens have the power to participate in the governance of the Chainlink network. They can propose and vote on protocol upgrades, improvements, and parameter changes, shaping the future direction of the ecosystem.
The LINK token operates on the Ethereum blockchain, adhering to the ERC-20 standard. Initially, Chainlink conducted an initial coin offering (ICO) in 2017, distributing the majority of LINK tokens to investors and supporters. As of the knowledge cutoff in September 2021, the total supply of LINK tokens stood at one billion, with a circulating supply determined by market demand and liquidity. As the supply of LINK tokens can fluctuate based on demand and liquidity, we recommend checking the most recent data from reliable sources or consult a crypto exchange to obtain the current, most up-to-date information regarding the supply of Chainlink (LINK) coins.
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