September 23, 2021
ChainLink is one of the most promising cryptos in the market right now, ranked #15 on CoinMarketCap and growing rapidly. With the boom of DeFi protocols that’s been going strong since 2020, ChainLink has proven itself to be one of the more valuable ones. But what is it about and, more importantly, is it really worth the buzz?
The core concept of ChainLink is to combine on-chain and off-chain components in smart contracts. Its ‘Decentralized Oracle Network’ serves as a bridge between these two components, as well as connecting hybrid contracts with off-chain resources such as web services, other blockchains, decentralized storage, etc.
Blockchain technology creates a way of conducting financial transactions in a trustless environment with no central parties, but its field of action is limited to input from within its own network. With DeFi protocols, it’s necessary to know the price of external assets, both in the cryptocurrency and traditional markets. In the middle stands ChainLink, with an ecosystem of data providers and node operators to ensure the information is correct.
Providers who give real information are rewarded with LINK, the dapp’s token. If their information is false, they lose credibility and income. This way, they are incentivized to constantly provide real data. The information, once confirmed, is then used for blockchain-based services.
The ChainLink protocol was first announced in late 2017, during the initial coin offering (ICO) fever. The LINK token launched at around $0.20 and remained low for the next couple of years.
It was in mid-2020 when the Defi ecosystem started to blossom that the market saw the need to use ChainLink, and its price began to rise. By May 10 it reached $52.88, its current all-time high so far. After that, it fell below $15, and then bounced back in late June. Each LINK is worth $23.06 at the time of writing.
Judging by its market performance, the project is really valuable in the long term, both as an investment option and as a usable DApp.
Why is ChainLink so exciting?
ChainLink represents a lot of value for users. Besides improving the function of many other dapps, the ChainLink ecosystem itself can be very rewarding.
The price of the token is on the up, so it can be considered to be a good investment. But it also allows anyone to set up a node and contribute to the growth of the ecosystem. Node operators get a passive income from its proof-of-stake (PoS) mechanism, which is less resource-intensive than proof-of-work (PoW).
The ChainLink ecosystem is expected to grow, and that’s why Kirobo supports the LINK token in all its products. The Kirobo platform gives users the possibility to send tokens securely. You only need to create a password and introduce the address of the recipient.
If you send it to the wrong address, the receiver won’t be able to withdraw it and you can reverse the transaction. This feature is also available in the P2P Swap Button, which you can use to trade tokens with other peers at your own prices, paying only Ethereum gas fees.