What Is Chainlink And How It's Creating 'Actual' Decentralised System

0 5
Avatar for Ashma
Written by
2 years ago

Although we say that Blockchain is supporting decentralisation or decentralisation is one of the main feature of the Blockchain Technology, but even with the use of all complex maths and cryptography there's one issue which is not solved until Chainlink comes into the picture. The issue is about the world outside of the universe of blockchain application, the data transfer between these two entities. 

So in this article we're going to find out what Chainlink is and how it solves the decentralisation problem of Blockchain.

Beginning Of The Chainlink ?

Chainlink was founded by Sergey Nazarov (CEO) and Steve Ellis (CTO). Chainlink raised around $32 million in September 2017 through Initial Coin Offering (ICO). 

The actual idea behind the rise of Chainlink is to retrieve the data from one blockchain and insert it into another, along with keeping the process secure, trustworthy and decentralised. 

What Is The Actual Problem ?

There are multiple blockchain projects which uses oracles (centralised entity to provide data) in there dApps which raises the question regarding the decentralisation. Actually any Blockchain is an universe and there's always vulnerability to retrieve data from the Blockchain. There wasn't any  options to the oracles which serves as an universal database.

What's The Solution ?

Chainlink found the way to in and out the individual Blockchain universe securely. Chainlink created a network of nodes which carry out the whole process which keeps the process decentralised.

Before Chainlink there's huge vulnerability during interaction between Decentralised Applications (dApps) and real world, where data gets exchanged which creates multiple possibilities of data manipulation and faking the data. But Chainlink solved the problem and it's still in starting phase, currently Chainlink can provide accurately price feeds, event results and links to traditional payment system keeping the process decentralised.

What Makes Chainlink Special ?

Chainlink is not only useful for Blockchain but also to the traditional business world, as it is the bridge between these two worlds. We can see that from the list of Chainlink partners which includes Polkadot and Synthetix from the crypto side and SWIFT and GOOGLE from the traditional business world. The DeFi protocol bZx is also collaborated with Chainlink to develop completely decentralised DeFi  system.

For example, we can transfer fiat currency to the Chainlink via SWIFT and vice versa. The proof of work can be sent back to the SWIFT. This process removes the vulnerabilities while interacting with Blockchain.  

Future Of Chainlink ?

In 2016, Chainlink is the only coin which does not suffered from the  down-trend instead of that it followed the up-trend. There are numerous projects are currently working on the Chainlink platform, which makes it more successful. And also it is one of a kind system that means there is no competition for them. 

Along with above things, Chainlink is fueling the fire of decentralisation which brings lots of other established projects in crypto world to use Chainlink instead of other traditional oracles. Hundreds of crypto research companies including Binance Research, Chainalysis and others predicted LINK will the best performing crypto in near future that'll surpass BTC and other big coins. 

This is it for now, hope you liked this article.

!! Thanks For Your Time And Appreciation !!

If you like my work and want to get more then you can sponsor my work !!

Sponsors of Ashma

$ 0.00
Avatar for Ashma
Written by
2 years ago