Most smart contracts that seek to imitate/replace securities, insurance, and most other financial arrangements will require access to off-network resources, such as data feeds, APIs and any other resource that exists outside the blockchains.
What does the company / project do?
Oracle is a necessary middleware that provides this access/functionality to smart contracts Ethereum. With the help of oracles, you can provide programmable contracts that make payments between the two parties after fulfilling certain criteria without involving an intermediary.
ChainLink has developed oracles that can allow an intelligent contract developer to interact with various data providers, payment solutions, and a traditional banking system. For example:
ChainLink connects smart contracts to any / all external systems and APIs
Smart contract securities require data feeds on market prices and market reference data, for example, interest rates. They usually also have to pay for existing bank accounts for many of their users, which can only be done through ChainLink, which connects to the existing banking system.
A smart insurance contract requires data on IoT data related to the insurance event in question, for example, whether the magnetic warehouse door was blocked during the violation, whether the company’s firewall was on the Internet, whether you had an insurer arrived on time, etc. Insurance products also usually want to be paid in formats that users already want to receive, for example, USD, into the bank account of end users.
Commercial financing transactions usually require GPS data on shipments, data from ERP-systems of the supply chain and customs data on the goods being shipped; All this data must be added to the ChainLink smart contract. Many trade finance transactions are still settled in the currency exchange rate they can pay for using ChainLink.
ChainLink’s network is the first decentralized oracle network that allows anyone to reliably provide smart contracts with access to key external data, over-the-counter payments, and any other API capabilities. Anyone who has a data feed, a useful off-network service such as local payments or any other API, can now provide them directly for smart contracts in exchange for LINK tokens.
ChainLink supports Ethereum, Bitcoin, and Hyperledger. Since the project is a decentralized network, users can be rewarded for decentralization, trust and the immutability of using ChainLink oracle.
How advanced is the project?
Parent company ChainLink, SmartContract, was founded in September 2014.
It was chosen as “2017 Blockchain Applications Cool Vendor” by Gartner.
SmartContract has a partnership with Swift’s inter-bank messaging platform. In June 2017, they completed the concept of the first stage, where SWIFT is a client payment of ChainLink.
How can owners of tokens make money?
LINK lines are used to pay for data providers, operators of project sites, payment providers and other online service providers. Smart contract users will compensate for the data providers that they use with LINK tokens.
The vast majority of intellectual contracts require external data to perform. Currently, it is very difficult to get this data, so the project exists. The token compensation system will ensure accurate data in addition to increasing decentralization throughout the network.
Since the LINK tokens are used as the currency on the project platform, the more ChainLink is used, the more valuable the LINK tokens should be.
With the help of the oracle, blockchain technology and a smart contract will be much more useful. People could selflessly perform various types of contracts. I believe that the Oracle project will help blockchain technology achieve mass adoption.
The ChainLink partnership with SWIFT, which is used by more than 11,000 banks around the world, allows ChainLink to easily interact with other financial institutions in the future.
The team has been working together in the blockchain for several years and started working with the products in its previous business.
A network effect is present because the ChainLink platform is more useful when it is the source for chain data channels, so users do not need to access multiple sources for different data types.
For long-term investment
Well, because 1) ChainLink solves a real and very lucrative problem with a lot of use cases, and 2) the project already has a clutch with SWIFT, which is a client payment.
- Useful links
Sergei Nazarov, co-founder and chief executive officer – Serial businessman, master in the blockchain. Prior to launching SmartContract, he was the founder of Secure Asset Exchange, an exchange network similar to ShapeShift, and CryptoMail, a decentralized mail service.
Steve Ellis, co-founder and technical director – Serial entrepreneur, who worked with Sergei Nazarov on the Secure Asset Exchange. Previously he worked as a software engineer in Pivotal Labs.
ChainLink has a strong team of consultants, including Ari Jewels, professor of computer science at Cornell Tech and director of IC3, Andrew Miller, associate professor of computer science at the University of Illinois and advisor to Zcash and Tezos and Hudson Jameson, one of the key members of the Ethereum Foundation.
Hudson Jameson wrote a blog post explaining his decision to become an advisor to ChainLink.
Sale of tokens: 19 SEP 2017
ICO Token Price: 1 LINK = 0.11 USD (0.00038 ETH)
The first addition to the exchanges: September 20, 2017
Price: 1 LINK = 0.15 $