The new age of cryptocurrencies has stormed the world by surprise and taken off on a high note. Though there are still doubts about this particular asset class, investors have not been shy in investing in the many types of cryptocurrencies (altcoins) available.
In 2021, the cryptocurrency industry has had a bullish run and caused gains across the blockchain industry. With new features introduced, this market space is evolving and, the sky is just the beginning for digital currency.
A feature that has the eyes of many and is termed as the next digital lawyer is Ethereum smart contracts. It has created a more transparent system in building trust and securing funds. It acts as a third party between two parties and is described by crypto fans as a success feature that will change the blockchain industry.
ChainLink is one cryptocurrency that has been able to succeed in smart contracts. This is by using it to assess external data and use the data in its blockchain (on-chain), which has been a successful way to get external information and using it in the network transparently.
So, What Is ChainLink?
The ChainLink idea was born in 2017 by two cryptocurrency experts Steve Ellis and Sergey Nazarov and, launched by a Fintech company. The two used oracle operators to access data feeds and information from the outside blockchain. Now that you know what is ChainLink, here are some of the benefits it holds and will help any investor out there who has eyed a piece of the cryptocurrency cake.
1. Access To Authentic Data And Information Through Oracle Operators
Using oracle operators has helped ChainLink be as transparent as possible. It has provided a way for information gathered from outside its blockchain to be successfully used in its blockchain. What makes it even more exciting is how the oracle function validates every piece of data and information accurately. It makes it a decentralized network that is authentic information used in the system.
2. An Efficient Security System For Its Users
ChainLink has incorporated a security system that guarantees accurate information. It has provided a four-way security system to guide its users to ensure the cryptocurrency is safe. The four-way security system has; validation system, reputation services, certification services, and contract upgrade service.
Validation system: This system helps users identify the best oracle to use as it monitors on-chain behavior and ensures it is correct.
Reputation services: This security service ensures that the ratings of every oracle user are recorded and published. It builds trust and improves the oracle reputation as authentic.
Certification services: This adds extra security to the first two security services. It will help guide users in selecting the right oracle and provide a certification to quality oracle providers.
Contract upgrade services: In case of a faulty oracle, this service acts as a backup. If the system is hacked, a new supporting oracle will be immediately generated.
3. A Secures Smart Contract Type
The introduction of smart contracts has helped the blockchain industry tackle fraud, a reason why investors do not want to be part of the ever-growing cryptocurrency market space. With smart contracts, there is zero probability of fraud. They act as a third party where agreements and funds are secure in case of breach of contract between two parties.
4. An Opportunity For A Business To Thrive
The dream for any investor who wants to liquidate a business opportunity is for the business to thrive. One major factor for this is having valid and authentic data and information to run the business. The ChainLink decentralized network has made it possible for any business to thrive as Oracle provides APIs which help authenticate outside information.
5. A User-Friendly Environment
ChainLink has provided an easy user interface and design to suit your needs. Though reading the ChainLink original white paper may make it look like a hard task, the user interface is easy to use and, information is passed smoothly to users. The architectural design is divided into two: on-chain and off-chain design.
6. Scalability For Its Users
One of the most selling features about ChainLink is how scalable it is for its users. This means it can handle multiple information in its network. As the network grows, it may require more nodes which may be costly, especially for the node operator.
In conclusion, ChainLink has offered a safe and secure place for investors to take their business to the next level. The easy-to-use system can be navigated easily by anyone with any cryptocurrency knowledge out there.
The blockchain industry is still a growing sector and, with the technology of ChainLink and their vision to change the cryptocurrency space. Many cryptocurrency experts unanimously agree that this trend is likely to become widespread as different nations continue to incorporate cryptocurrency in their financial systems.
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