Start your financial journey today
A decentralized oracle network, Chainlink (LINK) plays a role in blockchain technologies’ real-world implementation. An oracle is important in crypto and blockchain industry because decentralized finance protocols and decentralized exchanges use it.
Why traders use ChainLink?
LINK’s mission is to offer input on a wide range of data external sources. As Chainlink, being a decentralized oracle, can also offer input to what is called smart contracts, which aid the system in responding to a wide range of input.
As cryptocurrency evolves, Chainlink poses as an important innovation because it can be the key to the viability and long-term stability of cryptocurrency. So, traders, who think this might become an industry standard, invest on it.
This cryptocurrency provides a smart contract with an external API access that the trader wants to connect it to. In this case, they can pay through a contract via a banking network or a payment system.
Traders also like this crypto’s compatibility between other cryptocurrencies, such as Ethereum and Bitcoin. It also lets payment services and banks to be included in the system.
The cryptocurrency’s primary goal is to centralize smart contracts. When this happens, it’ll be increasing information accuracy and security through giving an access to off-blockchain sources to on-chain smart contracts. It also has the ability of allowing trustless transactions without needing any central authority. [Since 2014, the SmartContract company’s been engaged in the automation of contract.]
Another advantage on Chainlink is its cooperation with globally known and large companies, including Oracle and Google.
Chainlink can also be used anonymously, as provided by Ethereum blockchain. But then, the blockchain’s public, so all addresses and transaction records are visible. However, someone cannot identify the user only through the address. Traders can use the cryptocurrency anonymously provided no one would link the address to a real identity.
The tokens can be a sound investment if it will be given the Chainlink project’s goals and capabilities.