LINK, short for Chainlink, is the first decentralized oracle network that enables anyone to securely provide smart contracts access to critical external data, off-chain payments, and any other API functions. Its purpose is to connect smart contracts with external data sources and real-world information.
Chainlink utilizes a distributed network of nodes to provide data services. These nodes, known as on-chain nodes, are responsible for retrieving data from external data sources and transmitting it to smart contracts. Data validation and consensus mechanisms among the nodes ensure the accuracy and security of the data.
The LINK token is used to pay for the services provided by on-chain nodes. Nodes lock a certain amount of LINK to offer data services and receive corresponding rewards. Additionally, the LINK token is also used for on-chain governance, where holders can participate in decision-making and voting on proposals within the Chainlink network.
The Chainlink project was co-founded by Sergey Nazarov and Steve Ellis in 2014.The Chainlink mainnet was officially launched in May 2019. Currently, Chainlink has partnered with Google Cloud and Amazon Web Services. Chainlink services are integrated into Google Cloud Platform and Google Cloud Platform.
In 2024, Chainlink made significant advancements in cross-chain interoperability and decentralized finance (DeFi). The Cross-Chain Interoperability Protocol (CCIP) was officially opened to all developers, marking a major milestone for secure cross-chain data and asset transfers. Key partnerships included integrations with Aave for its GHO stablecoin and gaming ecosystems like WEMIX. Additionally, Chainlink launched the Transporter app, powered by CCIP, offering users a highly secure solution for moving tokens across blockchains.
Furthermore, Chainlink's Proof of Reserve (PoR) was integrated into 21Shares' Core Ethereum ETF (CETH), improving transparency in the reserves backing tokenized assets. Chainlink also collaborated with Google Cloud, further solidifying its position as a leading decentralized oracle provider by offering blockchain data analysis and node validation services.
Above are only for introduction, not intended as investment advice.
