Chainlink is a decentralized oracle network that allows public blockchains and smart contract platforms to bring external, off-chain data sources to on-chain operations. It seeks to address the oracle problem — the ongoing challenge of linking off-chain data with on-chain data with minimal trust in third parties. In a nutshell, Chainlink provides a valuable service by making real-world data such as market stats, event outcomes, and even the weather available on the blockchain without relying wholly on centralized data providers.
LINK, Chainlink's native token, is used to pay the network's node operators, or oracles, for providing secure data feeds.
Read on for our deep dive into the Chainlink project, the Chainlink (LINK) tokens, and learn how to buy Chainlink and why real-world data is valuable on the blockchain.
Let's dive in!
What Is Chainlink
Before discussing how to buy LINK, let's first look into Chainlink, a decentralized oracle network designed to supply smart contracts with credible, real-world data. These oracles let Chainlink smart contracts get solid real-world, off-blockchain data from external sources, such as any kind of API and some other types of external data feeds. In other words, Chainlink takes the capabilities of smart contracts to the next level by enabling access to real-world data, such as currency exchange rates, weather data, events, payments, etc., without sacrificing the security and reliability that are inherent to blockchain technology. It allows storing, calculating, or otherwise utilizing data from the rest of the world through a reliable and decentralized source of information.
A decentralized oracle solution, such as the Chainlink network, makes blockchain accessible to the rest of the world in several ways:
- Weather data will be used to determine insurance rates
- Supply chain tracking will benefit from location data
- Sporting events will be used to settle decentralized sports betting
- Political events will be used to settle prediction markets.
LINK is the Chainlink network's native token used to pay for services. The smart contracts that request the data pay Chainlink node operators in LINK for their service. Node operators also stake LINK to ensure long-term commitment to the project and are incentivized with LINK rewards to encourage acting trustworthy rather than being malicious.
LINK is based on Ethereum and is in line with the ERC20 token standard. Though originating on Ethereum, Chainlink is interoperable and designed to work across any blockchain with smart contract functionality.
LINK tokens can be purchased on cryptocurrency exchanges and traded in exchange for fiat or other digital currencies. They may be saved in a cryptocurrency wallet and custodian, such as the CoinStats wallet, Gemini, etc.
Chainlink Provides Many Useful Features:
Crypto-Economic Safety: Chainlink enables leveraging contractual service agreements that outline the parameters of an Oracle service and include monetary penalties for bad performance.
End-to-End Decentralization: Chainlink employs decentralized oracle networks comprised of independent and Sybil-resistant nodes to avoid data tampering. It also contributes to the cryptocurrency's high availability.
Blockchain Agnostic: Chainlink is a single framework that links all major public and private blockchain ecosystems, and it also acts as a common abstraction layer for cross-network connections.
Nodes With High Security: Every piece of data in Chainlink is digitally signed by nodes and saved on-chain. It also gives cryptographic evidence of the overall security of Oracle networks.
In-depth defense: Cryptographic signatures, trusted execution environments, zero-knowledge proofs, and other security measures can be used.
Data of high quality: On Chainlink, you may access any password-protected or secured API data source. This procedure can prevent several nodes from performing duplicate validation for any single point of failure.
Open Source Community: There is a vibrant chainlink open community. Developers, node operators, security auditors, and researchers are all part of this community. Members of this community contribute often, which helps to improve network security while also speeding up development.
How Does Chainlink Work
Chainlink follows an innovative three-step process to allow communication between its users and external data sources:
Oracle Selection : To begin, Chainlink users create a service-level agreement (SLA) outlining a set of desired data needs. The program then uses the SLA to match users with oracles that can provide the data. After setting the parameters, users submit the SLA and deposit their LINK cryptocurrency into an Order-Matching contract that takes bids from oracles.
Data Reporting : This is where the oracles connect with the external sources to receive the real-world data specified in the SLA. The data is subsequently processed by the oracles and returned to the Chainlink blockchain contracts.
Result Aggregation : The last stage is summing up the results of the data collected by the oracles and returning them to the Aggregation contract. The aggregation contract collects the replies, evaluates their validity, and gives users a weighted score based on the total of all the data received.
How Do I Buy and Sell Chainlink
Step #1: Create an Account With an Online Exchange That Allows You to Buy Link
The easiest method to buy and sell LINK Chainlink is through a cryptocurrency broker. You may exchange your fiat currencies or any other digital currency into Chainlink with a few clicks.
You must choose a broker who will enable you to conveniently and safely trade Chainlink.
How to Choose an Exchange to Trade Chainlink
Almost all crypto exchanges allow you to buy LINK. To select the one that suits you best, you must consider specific characteristics such as:
- A broker's platform that's dependable and simple to use. If you are a newbie, you might consider using a more user-friendly broker, such as Coinbase. However, if you are a more experienced trader/investor, you may want additional charts to make your next move. In such a case, Coinbase Pro is a viable option.
- A wide range of cryptocurrencies available for purchase on the platform.
- The assets provided by the broker. While some brokers exclusively sell cryptocurrencies, others offer both crypto and stock accounts.
- The fee system. Both commissions and maintenance expenses are to be included.
- Two-factor authentication, encryption, and security measures should be available.
After comparing the services and costs imposed by the crypto brokers allowing you to buy LINK, you should select the one that best meets your financial objectives.
Top 3 Cryptocurrency Exchanges to Buy Link Coins (LINK)
Coinbase, launched in 2012, is the largest cryptocurrency exchange in the United States and one of the largest in the world. This premier exchange enables trading Chainlinks and almost all main cryptocurrency pairings quickly and straightforwardly.
Coinbase has a one-of-a-kind function allowing you to earn cryptocurrency incentives. If you're a more experienced trader, the Coinbase Pro platform is perfect for you. It comes with improved features, including more order kinds, complex charting, etc.
While Coinbase doesn't offer the most cost-effective price structure, it does provide an easy-to-use platform on which even a novice can trade and invest.
Kraken, launched in 2011, is one of the most well-known crypto exchanges that gives you access to both huge projects and modest or new enterprises.
This exchange keeps the bulk of digital currencies in offline cold storage. Kraken's servers are constantly monitored by military-grade monitoring. With this dedication to safety, the chances of a hacking or malware assault are greatly minimized.
Kraken offers a maker-taker price structure depending on the user's degree of participation. Costs are the lowest for the most active traders and investors, making Kraken undoubtedly a better option for regular traders or investors.
Chainlink may be purchased on Kraken for as little as 0.5 LINK, equal to $18-19. Other advantages include the availability of a full suite of tokens and round-the-clock customer assistance.
In the cryptocurrency market, Gemini is one of the most well-known brands. Gemini products are renowned for setting the bar in various areas, including investor protection, overall broker experience, compliance, and security.
Gemini is available on the web, mobile (app), the ActiveTrader platform, and the Gemini Wallet. Gemini Custody, Gemini Clearing, Gemini Dollar, and Gemini Pay are also available.
Step #2: Buy Crypto Wallets for Storage (Optional)
After you've registered a brokerage account with the crypto exchange of your choice, you'll need to make plans for safely keeping your LINK digital coins. It's not advisable to store LINK on the exchange because a hack might lose all your funds. Wallets securely store your currency using a unique set of keys. You can choose between a cold wallet (hardware wallets) and a hot wallet (mobile and desktop wallets).
Hardware wallets are preferable if you intend on keeping Chainlink for an extended period, as they give the maximum level of protection. These are secure offline storage alternatives, and your keys are stored on a physical device. Hardware wallets may be purchased almost everywhere, including online retailers such as Amazon. These wallets function similar to a flash drive, allowing you to connect to a PC or laptop to transfer money into a secure wallet.
Top 3 Chainlink Wallets for Storage
This is a web-based wallet that accepts all digital currency, including LINK, ETH, BTC, and others. The Coinbase wThis web-based wallet accepts all digital currencies, including LINK, ETH, BTC, etc. The Coinbase wallet is protected by Secure Enclave and biometric authentication technologies. It includes a vast collection of digital art.
KeepKey is the cheapest cold wallet on the market, costing less than $30 and providing excellent security. All ERC-20 tokens (including Chainlink) and major cryptos like BTC, ETH, LTC, etc., may be stored. It's simple to use, and you only need to use a USB cable to connect it to your computer.
Trezor Model T
It's the most used cold storage solution and offers top-of-the-line security and a simple setup procedure. Trezor T may be used by anyone, whether they are a seasoned pro or a complete novice. Connect Trezor T to your mobile device or computer via USB or Bluetooth, and the gadget is ready to use in a matter of minutes, allowing you to move assets to your wallet instantly.
Trezor's Model T comes with a full-color LCD touchscreen making it easier to manage cryptos. It's an excellent choice since it offers the greatest level of protection, a wide selection of compatible digital currencies and tokens, enormous storage capacity, and a straightforward setup process.
Step #3: Deposit funds into your account to buy LINK
After you've created an account, you'll need to attach a funding or payment method so that you may move money from your source of payment to the concerned brokerage account.
To purchase, sell, and trade chainlink and other digital assets, most brokers accept direct bank transfers, wire transfers, and credit or debit cards. Linking the payment source to the account might take anything from a few hours to a few days, depending on the broker or payment method.
Step #4: Buy LINK
You may make orders to buy chainlink using your exchange account. You can even place a 0.5 LINK coin order for buying link. Place an order based on the current Chainlink pricing. To purchase chainlink, you can use a variety of orders, including market orders, limit orders, recurring orders, stop-limit orders, and others.
Step #5: Add LINK to Your Wallet
The Chainlink coins are sent to your account whenever an order is accomplished. If you wish to keep the money, you may use your private keys to store them in a wallet. LINK should be kept in a hardware wallet for long-term storage.
Where to Use Chainlink
Chainlink has a wide range of applications. For example, securities require market data, while the insurance and supply chain industries need to verify events and timestamps. Here are some examples of how Chainlink is useful:
- Payment information from a retailer or a bank can be used to activate a smart contract
- Weather data can be retrieved using a decentralized oracle system to help calculate premiums
- Location information for use in supply chain tracking.
How to Buy Chainlink From CoinStats
If you are interested in cryptocurrency investments, create a free trading account on CoinStats and buy LINK instantly with your credit or debit card. You can buy Chainlink using the CoinStats app in a few simple steps mentioned below:
1. Create an account with CoinStats by choosing “Sign-Up with Email” or logging in with Coinbase; You can also opt for SSO features.
2. Verify your account before purchasing Chainlink. To comply with regulations (and provide better account security), you must provide an ID to validate your identity.
3. Login with your credentials, search for the Chainlink token in the search bar and tap on Chainlink.
4. You can see the Chainlink price and place your order. CoinStats will provide you with two options in response to your query: Buy Chainlink or Sell Chainlink. Select Buy Chainlink from the menu and enter how much LINK you want to buy.
5. Select your preferred exchange if you want to buy directly from one of the listed or connected exchanges. Otherwise, you can make a Chainlink purchase with fiat currency by clicking on the 'Buy with Fiat' feature available on the top of the page.
6. Lastly, choose your preferred payment method from the three available choices, in case of Chainlink it's only Binance, however, there are other options available for other coins.
Why You Should Buy Chainlink
Chainlink (LINK) is one of the most renowned cryptocurrencies with enormous growth potential. It's not only backed by the correct technology but also has sufficient resources for future development. The best aspect is that Chainlink has a fantastic community. So far, the initiative has won a slew of accolades, including recognition as a World Economic Forum Technology Pioneer in 2020.
Chainlink dramatically expands the capacity and use cases of smart contracts by allowing blockchain to access real-world data, payments, events, etc., efficiently. Approximately 20,000 individuals now serve as Chainlink node operators, contributing to the project's goal of establishing an utterly decentralized oracle network.
With the emergence of staking, yield farming, etc., users are searching for new ways of investing crypto assets for more than simply capital gains. Staking LINK involves running a Chainlink node or joining a Chainlink stake pool to connect blockchains with off-chain data and receive payments in LINK for exchange.
If blockchain oracles gain traction, and LINK is at the forefront of that, earning LINK for providing off-chain data to smart contracts would pay off handsomely for stakeholders.
Chainlink solved the oracle problem on how to retrieve and share information from oracles without putting the security of the blockchain at risk. It created a decentralized network, where instead of having to trust a source, smart contracts run through the Chainlink network and have access to resources like data feeds, traditional bank account payments, and web APIs.
Cryptocurrency investing is subject to market risk. CoinStats offers simple and accessible alternatives for buying Link instantaneously, and while we make every attempt to thoroughly inform our users about each cryptocurrency we provide on our platform, we are not liable for the outcomes of your LINK purchase.
This content, including any information contained therein, is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.