Chainlink
About Chainlink
Chainlink (LINK) is a decentralized oracle network enabling real-world data connectivity to smart contracts on the Ethereum blockchain. LINK, the network's native cryptocurrency token, is used to pay for oracle services, incentivize accurate data provision, and reward node operators. Founded by Sergey Nazarov and Steve Ellis in 2017, Chainlink enhances the functionality of decentralized applications (DApps) by ensuring secure and reliable data connection. This technology supports various applications such as financial services and supply chain management, strengthening the overall blockchain ecosystem.
Link provides the main incentive mechanism for users to participate in Chainlink’s decentralized network of oracles. Link is an ERC-20 token based on the Ethereum blockchain. Unlike ether (the native cryptocurrency of Ethereum), link uses a type of proof-of-stake (PoS) consensus protocol where participants have to run their own nodes and are required to provide data to smart contracts in order to receive link tokens as a reward. It’s not a case of simply depositing tokens and earning interest.
Because link is used both for the exchange of data services and for node validator staking, it is used both as a means of payment and as a work token. Additionally, link has a hard cap of 1 billion tokens that are distributed as rewards for the validation work of node operators. One billion tokens were created during the token’s launch in September 2017. Some 35% were allocated to a public sale at a price of $0.09 - $0.11, raising $32 million.
The price never climbed higher than $1.30 for nearly two years after the token was launched. Then, in 2019, following a flurry of new partnerships with the likes of Google Cloud, Polygon Network, and Reserve, link prices skyrocketed 489% to $5. Another string of partnerships announced in August 2020, including one with Provide, sent link’s price soaring over the $20 mark for the first time. Between December 2020 and May 2021, link’s price rose more than sixfold and reached an all-time high of $52.88.