Chainlink 101

By Aleksandra Wilson
3 min read September 3, 2021

What Is Chainlink?

Chainlink is a layer of blockchain abstraction that allows smart contracts to be connected universally, it enables blockchains to interact in a secure way. That happens with data feeds from the exterior, different payment methods, and events. That provides essential information needed by complex smart contracts to develop into the predominant configuration of digital agreements. The Network for Chainlink is mainly driven by a community of data providers, operators of nodes, researchers, developers of smart contracts, and so on. The company’s primary focus is to ensure that decentralized participation can be guaranteed for all the operators of nodes and all users who look to make contributions to the network in general.

About the Founders

Chainlink was co-founded in 2017 by Sergey Nazarov, who is also CEO of Chainlink Labs. Nazarov has a degree in business administration from the University of New York. In 2009 he co-founded ExistLocal; in 2014, he was a co-founder of CryptaMail. He also joined forces with Steve Ellis and launched SmartContract, which led Nazarov to start Chainlink. Steve Ellis has a computer science degree from New York University. He was a software engineer at Pivotal Labs, and in 2014 he founded the Secure Asset Exchange.

What Makes “Link” Unique? 

This is one of the networks that allowed the incorporation of off-chain info into smart contracts for the first time. Chainlink has become a significant player when it comes to data processing. In recent years it has been attracting the attention of different data providers, such as Brave New Coin, Huobi, and Alpha Vantage. Data providers can monetize the data they possess by selling access directly to Chainlink. Since it’s a network that’s not centralized, it enables users to be operators and earn some revenue by running an infrastructure of data that is mandatory for the success of blockchains. 

Circulation of Chainlink 

Since the beginning of it, Chainlink announced that there would be a total maximum supply of 1,000,000,000 tokens of Link. The collection at the moment of writing this article is around 419,009,556 of Link tokens, about 42%.

About Security 

It is secured by the mechanism of proof-of-stake (PoS), which relies on the total of stacked tokens to select validators. The protocols of PoS were created to help with the power consumption issue, plus they’re scalable in an easy way. Now that PoW has proven itself to be a reliable mechanism, a vast variety of ERC-20 tokens have grown fast, marking trends in the space.

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