LINK (Chainlink) Definition
Chainlink’s token, identified as LINK, is an integral component of the Chainlink protocol, a decentralized oracle network that allows smart contracts to integrate with real-world data, APIs, and banking services. The LINK token, an ERC-20 token with additional ERC-677 functionality, is used to pay node operators for the retrieval of data from off-chain data feeds, formatting of that data into blockchain readable formats, and uptime guarantees to ensure the data remains reliable.
LINK (Chainlink) Key Points
- LINK is the native token of the Chainlink network, an oracle service for smart contracts on various blockchain platforms.
- It is an ERC-20 token with additional ERC-677 functionality.
- LINK tokens are used to pay Chainlink node operators that provide data services to the network.
- The LINK token serves as the digital asset used in the Chainlink network for transactions, rewarding node providers, and a deposit in node operation.
What is LINK (Chainlink)?
Chainlink’s LINK is a crypto token that functions within the Chainlink ecosystem. Specifically, it energizes the various facets of the Chainlink network, including data services rendered by node operators. It is often regarded as a bridge between the on-chain and off-chain worlds, enabling communication and connectivity between the two.
Why does LINK (Chainlink) exist?
The purpose of LINK rests on Chainlink’s mission to bridge the gap between blockchains and the real world. LINK is a crucial operational component of decentralized oracle network, incentivizing actors within the system to efficiently and accurately avail real-world data for smart contracts, all while maintaining system security.
Where can you use LINK (Chainlink)?
LINK tokens can be used within the Chainlink network to purchase data services, or they can be used as a form of deposit when a data request is made. Besides, one can trade or invest in LINK tokens on various cryptocurrency exchanges worldwide.
When was LINK (Chainlink) created?
LINK was introduced together with Chainlink’s network launch in June 2017. The intent was to further the potential of smart contracts by enabling them to interact with real-world data.
Who created LINK (Chainlink)?
LINK was developed and introduced by Sergey Nazarov and Steve Ellis, who co-founded Chainlink.
How does LINK (Chainlink) work?
LINK tokens serve as the currency of the Chainlink ecosystem. Node operators are paid in LINK tokens for providing services like retrieving data from off-chain data feeds, formatting it into blockchain readable formats, and guaranteeing uptime. Additionally, to discourage dishonest node operators, LINK tokens are kept in reserve as a form of staking, which can be forfeited if proved to be acting malicious.
