Chainlink (LINK), a decentralized oracle service that connects smart contracts with data from the real world is doing a roaring trade from the past seven days. Chainlink is trading at $1.32 USD with 18.12% change as of writing this article on May 22, 2019.
Chainlink in last seven days
What exactly is Chainlink Network?
The Chainlink Network provides reliable tamper-proof inputs and outputs for complex smart contracts on any blockchain. The Chainlink allows blockchain to access data outside their network using oracles that serve as data feeds in smart contracts.
External data provided by oracles trigger the execution of smart contracts upon fulfillment of pre-defined conditions. Participants on the Chainlink network are incentivized in the form of rewards to provide smart contracts with access to external data feeds.
The decentralized oracle network of Chainlink is as secure as smart contracts themselves. Chainlink removes a single point of failure and maintains the security, reliability, and trustworthiness; of a smart contract by enabling multiple Chainlinks for the evaluation of the same data before it turns into a trigger.
ChainLink: What actually does ChainLink provide?
ChainLink gives your smart contracts verifiable secure access to data feeds, APIs, and payments.
Smart contracts need safe and secure middleware to connect them to the real world. But the problem is, smart contracts can’t access external resources like off-chain data and APIs on their own. The reason for this lack of interoperability is because of how consensus is reached around a blockchain’s transaction data. While the lack of external interoperability is a problem for every smart contract network, centralized oracles are a single point of failure.
Chainlink connects your smart contracts to the inputs and outputs it needs through a highly reliable decentralized oracle network.
What is the use of LINK Token?
The ChainLink network utilizes the LINK token to pay Chainlink Node operators for the retrieval of data from off-chain data feeds, formatting of data into blockchain readable formats, off-chain computation, and uptime guarantees they provide as operators. In order for a smart contract on networks like Ethereum to use a Chainlink node, they will need to pay their chosen Chainlink Node Operator using LINK tokens, with prices being set by the node operator based on demand for the off-chain resource their Chainlink provides, and the supply of other similar resources. The LINK token is an ERC20 token, with the additional ERC223 “transfer and call” functionality of transfer allowing tokens to be received and processed by contracts within a single transaction.
Reasons for the surging trend of LINK token
Latest Bitcoin Surge
The exceptionally well performance of LINK might be because of the latest bitcoin surge when bitcoin jumped to more than 30% of its price.
Announcement of ChainLink Mainnet
ChainLink announced that they would be launching their mainnet on May 14th.
Since, then, the price of LINK has increased by more than half relative to BTC in just seven days. Besides, the constant price increase might be due to the fact that their mainnet announcement was made at Consensus 2019.
Release of a buy-signal
The 50% price jump might be because of the buy- signal on LINK, issued by a cryptocurrency investment analysis company on May 16th. The signal pumped the token by more than 18% in a few hours.