What Is Chainlink and How Does It Work?

Did you know that over 100 million people around the world use cryptocurrency? As you can imagine, crypto has become a stable asset for people to invest in. Moreover, this asset can be lucrative, especially if you invest in certain coins like Chainlink.

But, what is Chainlink cryptocurrency? In today’s post, we’ll go over some important features of Chainlink and why you should consider adding Chainlink to your portfolio.

Chainlink and the Oracle Network

Sergey Nazarov created Chainlink in 2017 to enhance the hybrid smart contracts, which Ethereum had first implemented. So, Sergey took bits and pieces of Ethereum and improved it by changing the blockchain technologies it ran on. And as a result, Sergey revolutionized the Oracle network (the network Ethereum ran on) and created Chainlink.

But, of course, you’ll need to know what smart contracts are on a crypto-based technology platform, so let’s briefly explain them.

Chainlink and Contracts

In layman’s terms, a smart contract is a program stored on a blockchain system that activates once a contract meets its requirements. But, let’s use an example to explain these contracts further.

For example, suppose you agree to remodel a room for $200. Then, once you finish remodeling the home and the customer approves the change, the platform will send that payment to your account. This implies you’ll get your payment a lot faster than doing it the old-fashioned way.

Unfortunately, there are limits when using these types of contracts. For example, if you use Stellar Lumens, the payment will be made in XLM. But, that’s when Chainlink comes in handy since it can change the payout to any currency, which means if you prefer to be paid in BTC (Bitcoin), then Chainlink can help you make the changes.

Is Chainlink a Reasonable Investment?

Now that you know how Chainlink works, you may wonder if this currency has a promising future. And the truth is that Chainlink has slowly increased in value over the years, especially as Sergey has made significant improvements. Moreover, some exchange platforms like DeFi let you buy Chainlink at a reasonable price.

But, of course, the overall price of Chainlink can change over time, especially since the market is in constant motion. Nonetheless, Chainlink has remained steadfast despite the continuous changes in the market. Moreover, the current price of Chainlink makes it easier to invest in, unlike other coins like Bitcoin or Ethereum.

Now You Know What Is Chainlink

Hopefully, with this informative post, you know the answer to the question: What is Chainlink? But, of course, you’ll need to do your research before you think about investing since you’ll want to make sure you feel comfortable with the coin. And don’t forget to bookmark this page for future reference!

Did you find this post helpful in explaining Chainlink? If so, we invite you to browse through our other crypto-related posts before you go!