The Chainlink project began in 2014 with the vision of becoming the world's leading oracle solution, and by 2017 Chainlink had raised over $32 million through its Initial Coin Offering (ICO). Nowadays, Chainlink has become the only name in blockchain oracle solutions, making it one of the most valuable crypto assets in terms of market capitalisation.  

What is Chainlink?

Prior to Chainlink, blockchains could not access and transform real-world data, such as credit ratings, into blockchain-readable data. Because of this limitation, smart contracts were unable to utilise current standard metrics to evaluate their executable actions, posing a significant barrier to the adoption of blockchain technology for real-world applications.

Enter Chainlink - the world's leading decentralised oracle network, allowing smart contracts to safely interact with real-world data and services in a blockchain-readable manner. Serving as a vital component of smart contract infrastructure, Chainlink finally allows the traditional and crypto worlds to connect. 

How does it work?

In order to allow communication between blockchain-based smart contracts and real-world data sources, Chainlink follows an innovative three-step process:

• Oracle Selection: a Chainlink user drafts a Service Level Agreement (SLA) specifying a certain set of data requirements. The Chainlink software then uses this SLA to match the user with the most appropriate oracles that can provide the data. Once the parameters are set, the user submits the SLA and deposits their Chainlink (LINK) in an Order-Matching contract, which accepts bids from oracles.

• Data Reporting: this step is where the oracles connect with the external data sources to obtain the real-world data requested in the Chainlink SLA. The oracles then processed the data and sent it back to the contracts (smart contracts) utilising the Chainlink service.

• Result Aggregation: the final step of the process is to tally the results of the data collected by the oracles and return it to what’s known as an Aggregation contract. The Aggregation contract takes the data points, assesses the validity of each and returns a weighted score, using the sum of all the data received, to the user (smart contract creator).

So what part does Chainlink’s native token, LINK, play in all of this?

Smart contracts that request data pay Chainlink node operators in LINK for their services. The prices are set by the node operators based on the market conditions and demand for that data. Chainlink node operators are required to deposit a certain amount of LINK tokens into the oracle contract as collateral. This deposit ensures that node operators act in a trustworthy and honest manner while delivering reliable data. If the nodes misbehave or misrepresent data, their stake will be taken away. 

What makes Chainlink unique?

1. The bridge between traditional and crypto worlds

Chainlink completely solved the oracle problem by creating a decentralised network which acts as a bridge between the traditional world (real-world data) and the blockchain world (smart contracts) by allowing real-world data to be translated into blockchain-readable data. This information sharing from oracles takes place without compromising the blockchain's security.

2. Providing highly accurate information

Thanks to its internal reputation system, Chainlink can determine with a relatively high accuracy which sources are trustworthy – significantly increasing the accuracy of the results and protecting smart contracts from various malicious attacks.

3. Blockchain agnostic

The solution offered by Chainlink is used in almost every crypto asset project that requires information produced by oracles - from Solana to Polkadot and everything in between. In fact, without Chainlink's oracle solution, the crypto market would have developed much slower, and many of the most significant innovations would not have been possible.

4. Token utility

The sole currency utilised for crucial network activities is Chainlink’s native token, LINK. It is used to compensate node operators for data retrieval and also serves as collateral for the network's smart contracts. Over and above this, the quantity of LINK held by an oracle is one of the most important criteria in evaluating its reputation. These variables influence the value of the LINK token.

Where can you buy Chainlink?

Altify has added Chainlink to its crypto asset product offering on Thursday, the 13th of October 2022. Adding to that, Altify will be running a promotion where customers can buy Chainlink without having to pay transaction fees up to the 20th of October 2022. That’s right, Fee-free Chainlink on Altify!

Altify brings simplicity, trust and excellent customer service to investing in crypto assets. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. 

Invest in Chainlink here and start your journey with as little as R150.