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ChainLink first came into prominence after the unprecedented surge of its LINK crypto coin. The surge was driven by the project’s value proposition of finding real-world use for blockchain and smart contracts. Here are a few more details about this project.
How it will achieve its Goal
To find real-world use for smart contracts, the project intends to link payment services such as Visa, Banks, and PayPal with blockchains such as BTC and ETH. The project was established in 2015 and the ICO for the LINK token was held in 2017.
Chainlink is an oracle platform that is powered by the blockchain. It is currently located in Ethereum and supports connectivity to dApps on the network. The project plans to support more blockchains with time. The founder of the project is currently in talks with the SWIFT payment system to create the SWIFT Smart Oracle.
An oracle market is able to combine data from real-world payment system with blockchain technology, creating endless possibilities. Some in the crypto market believe it is the next step in the evolution of smart contracts and crypto.
Chainlink Predictions: Oracles can help to Improve Blockchains
For the blockchain space to grow, it is important for experts in the crypto space to work on interoperability. Some of the projects in the crypto space want to solve this issued using child and parent chains. Others think that sidechains are the futures. Instead of those solutions, Chainlink relies on oracles, which are agents that verify data from real-world uses and prepare it so that it can be recorded in smart contracts located on the blockchain.
To create these records, specific criteria are used. This includes price fluctuations or payment transfers. Once a threshold has been achieved, a network of oracle nodes, after arriving at a consensus, processes a block.
An oracle builds its reputation once it processes a transaction. The process of picking oracles, presenting data, and verifying it via consensus is all done using an on-chain smart contract solution that Chainlink is working on. As a result, any type of financial data can be recorded using smart contracts and stored inside a decentralized ledger.
Linking to Chainlink
For this project to success, it requires buy-in by enterprise-level players. Thus far, its largest partner is SWIFT, which is a global network used by banks to transfer funds across borders. When you swipe a card, the SWIFT network verifies that the transaction has gone through. Whether it is confirmed or denied, data is always transmitted. However, SWIFT is not their only partner, it just happens to be the largest thus far.
Chainlink wants to act as the network that holds the whole blockchain world together. With the help of its oracle nodes that it connects to external APIs with blockchain networks, it is able to offer interconnectivity between the finance world, data, and various other platforms. The project is currently based in Ethereum’s blockchain. It is still in beta testing but its real-world functionality will launch soon.