If you are an avid fan of anything but cryptocurrency and blockchain, then you must have come across the blockchain project known as Chainlink. Chainlink’s existence dates back to 2014 when a non-profit organization popularly known as SmartContract Ltd was founded. SmartContract Ltd quietly worked on the project until 2017 where it conducted an ICO for the project and managed to raise a staggering $32 million. Soon after, Chainlink began operations on the Ethereum blockchain, successfully netting itself some significant partnerships in the process.
Today, Chainlink is one of the most popular cryptocurrencies in the market ranking at position 17 on CoinMarketCap. Over the past four years, Chainlink has seen rapid and significant expansion amid the recent explosion in DeFi (Decentralized Finance). In this article, we are going to highlight what Chainlink is, how it works, some uses cases, and where you can buy or exchange it at the best rates. Stick around to the end of the article for our opinion on whether Chainlink’s value will rise and by how much.
Chainlink is a decentralized network of oracles that aims to provide real-world information to smart contracts on the blockchain. Blockchain technology has grown to encompass more than just P2P online money transactions. Thanks to the Ethereum network, blockchain can now be used to deploy smart contracts that allow people to enter into contracts that automatically execute if defined conditions are met. Although these contracts are secure and tamper-proof, there is often a big problem when they have to access external data to support their functioning.
The issue is that blockchains don’t have any inbuilt mechanisms capable of accessing external data. They rely on data feeds and APIs from third-party entities that may or may not be accurate. Chainlink was designed to solve this problem by incentivizing information providers to become the bridge between blockchain-based smart contracts and off-chain data sources. These data providers otherwise referred to as “Oracles” would then receive rewards in form of Chainlink tokens for providing accurate data.
Chainlink works in a series of three steps. These three distinct steps include:
In this step, a Chainlink user sends out a service-level agreement (SLA) on the Chainlink network. This SLA specifies a set of desired data requirements. The Chainlink protocol then creates a corresponding smart contract, a Chainlink Service Level Agreement Contract to acquire the required off-chain data. Basically, it uses the information in the SLA to match and connect the user with an oracle or oracles that can provide the desired data.
In this step, the oracles connect with the external sources to obtain the real-world data required in the SLA. The oracles process the data and send it back to the contract. An internal system starts validating the data whereby the most accurate data is input on the chain.
In this step, the results of the data collected by oracles are tallied and compared through an aggregation contract. The work of the aggregation contract is to collect the data from oracles and match the most accurate results with the smart contracts that need them. To do this, it tests the validity of each response and assigns each result a weighted score.
Once a Chainlink user deploys an SLA contract on the Chainlink network, in the background, Chainlink takes advantage of three kinds of smart contracts to facilitate the process. These smart contracts include:
This contract works by collecting data from oracles and trying to match the most accurate results with the smart contracts that require them the most.
This contract delivers the user’s SLA request to Chainlink nodes. It also receives their bids on the request and selects the right type and number of nodes to fulfil the request. Eventually, it matches the SLA with the best bidding oracle.
This contract takes all the data from the selected oracle and validates it or reconciles it for an accurate result. To verify the oracle’s integrity, it first checks the oracle’s track record. It relies on data such as the number of completed requests, average response time, and amount of Chainlink staking the oracle had done.
Chainlink has successfully partnered with over 30 companies all of which are in various sectors across the world. Thanks to its wide use case capability, Chainlink has attracted multiple financial institutions and companies that have invested in it. Below is a list of some Chainlink partners and how they utilize Chainlink:
This Singapore-based company partnered with Chainlink back in 2018. Wanchain uses Chainlink to access financial market data. The company’s goal is to enable blockchain interoperability and it is greatly benefitting from the secure and accurate off-chain data it acquires through Chainlink.
The partnership between Google Cloud and Chainlink was announced in 2019. Google Cloud utilizes Chainlink for its BigQuery service.
SWIFT utilized Chainlink in a proof-of-concept demonstration project that pushed financial data from several banks and financial firms such as BNP Paribas, Fidelity, Barclays, and Santander.
The partnership between OpenLaw and Chainlink took place in 2018. ConsenSys owns OpenLaw. It utilizes Chainlink to transfer records on-chain.
If you are wondering where to buy or exchange Chainlink, then Swapzone is the best Chainlink exchange for you. Through the LINK BTC pair, you can easily convert BTC to LINK without any hassles of identity verification or account opening. Here’s a step by step instruction on how to do it:
Chainlink is an Ethereum-based platform. Therefore, the platform’s native cryptocurrency, LINK, is an ERC20 token. Specifically, LINK is an ERC677 token which is an extension of the ERC20 token. LINK is utilized to pay or oracles for providing data for users’ Chainlink smart contracts. It’s also used as a deposit when it’s placed by an oracle as required by the contract creator.
Ever since its inception, Chainlink has been enjoying a steady stream of integration as it builds a roaster of partnerships with the largest names in the DeFi sector. So far, the platform has proven itself to be quite the innovation in the blockchain world that a majority of companies are willing to embrace. Therefore, a majority of analysts believe that its expansion in the industry cannot be stopped. A majority of Chainlink price predictions are in the range of between $45 to $70 for 2022.
An exchange rate is the rate at which one cryptocurrency can be exchanged for another through a certain crypto exchange provider. Cryptocurrency exchange rates on Swapzone reflect current prices of crypto assets and are updated every 30 seconds for you to keep track of any market changes and fluctuations to profit when buying the dip or going with the best exchange rate and the lowest exchange fees. All cryptocurrency exchange providers have their own rates, which depends on supply and demand, mining rewards, costs and so on. See what else might affect the rate in our article on prices.
There are two types of exchange rates aggregated by Swapzone – fixed rates and floating rates. To receive the exact amount of crypto that is displayed at the beginning of the exchange and shield yourself against the market's volatility, opt for fixed-rate offers. If you're ready to take a risk and receive less or more than the sum displayed, go with floating-rate offers but bear in mind that floating rates may drastically change any second. You can refresh your memory on how to get the best exchange rate here.
Crypto transaction fees may vary depending on the network (Ethereum transaction fees tend to spike during the congestion on the network), your chosen cryptocurrency, an instant exchange provider as well as its transaction processing speed and internal policy. These fees may be relatively low but it’s crucial to know they may be imposed in the first place.
If you want to exchange cryptocurrency with the lowest fees, beware of the offers with a grey-colored “Transaction fees are not included” label displayed under the exchange rate. To avoid having to pay an unexpected amount of fees during the exchange, opt for those that do not have that label. Read our articles to learn more about how to exchange cryptocurrency with the lowest fees and find out which assets have the lowest transaction fees.
Transactions usually take from 5 to 30 minutes to be processed, especially if you choose currencies with speedy networks. However, there are several factors that may affect and slow down the exchange process, i.e. transaction volume, blockchain capacity, network updates, cryptocurrency itself and the capacity or chosen exchange platforms.
The processing may take longer due to the large transaction volume, congestion of the network, blockchain overload and market overload, technical issues or system failures, lack of liquidity or network maintenance.
The transaction may be also stuck if you forget to add a required Extra ID, mistake networks or use the wrong wallet for a chosen crypto asset. If you worry that the exchange processing is taking too long, please, contact us at [email protected] or via our live chat on the landing page.
To exchange, buy, sell or trade cryptocurrency and store your crypto keys safely and securely, you need a crypto wallet. Choosing the best cryptocurrency wallet is a question of preference and need. To learn more, read our guide on how to choose the best cryptocurrency wallet for your needs.
There are several types of wallets for different crypto assets and tasks. Software wallets, or hot storage wallets, are connected to the Internet and come in many forms: Web, Desktop, Mobile or Browser Extensions. If you want to build a large crypto portfolio, you might want to look at multi currency wallets like Exodus, MetaMask, TrustWallet, Atomic or Guarda. If a coin or a token of your choice isn’t available there, you can always opt for a single-currency wallet that is usually designed by the project that launched the asset.
If you take safety and security matters seriously, go for hardware wallets, or cold storage wallets, like Ledger or Trezor, or even paper wallets. We strongly recommend you to do your research before creating a wallet: read the reviews to see what the community thinks, learn about the fees a particular wallet imposes for performing transactions, check out supported currencies and networks and see its security policy.
There are loads of different crypto exchange services, with new platforms emerging every month. Exchange providers differ by supported currencies, liquidity providers, fees, customer support, user interface, level of privacy and anonymity and customer support, which makes it hard for beginners to understand which one to choose. To learn more about what these exchanges offer and how you can assess them, read our guide on how to choose the best exchange platform.
To navigate them through the field full of services, we conduct research and thorough analysis of the market & list both prominent and promising exchange providers, keeping in touch with their teams 24/7. We give you all the necessary data on the offers they provide as well as their brief history, KYC/AML policies, reliability and advantages, while also indicating their downsides so that you don’t have to do that yourself.
Swapzone is an instant non-custodial cryptocurrency exchange aggregator that helps users make an informed choice when exchanging crypto assets. To make this possible, we gather the information on the exchange providers, select the parameters for comparison, aggregate and sort available deals & give an option to make a swap through providers' APIs in the same interface with a common user flow for every exchange. Still have doubts? Here's 9 reasons why you should use Swapzone to exchange crypto.
Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.