As is the case with most cryptocurrencies a general understanding of most coins is always helpful- and the ChainLink’s revolutionary take on Smart Contracts makes understanding it just that much more exciting!
What is ChainLink?
Users of the Ethereum blockchain know about smart contracts, and honestly, never stop talking about it (with good reason)! Smart Contracts execute commands once certain pre-set circumstances are met. The theory behind this idea seems extremely simple and very similar to stop limit orders, and it would only make sense to use such contracts in real markets too.
The solution ChainLink brings is that it makes it possible for smart-contracts to interact with off-chain systems and APIs. Smart Contract functionality should not only be restricted to the blockchain!
Do we even need ChainLink?
Smart contracts require secure middleware to connect them to real world data. This external data will trigger the contract, creating the need for its high reliability.
As developers begin to implement their chosen smart contract, they encounter a connectivity problem; their smart contract is unable to connect with key external resources like off-chain data and APIs. This lack of external connectivity is due to the method by which consensus is reached around a blockchain’s transaction data, and are a problem for every smart contract network.
What about the future of the ChainLink?
As blockchain technology progresses and gains traction, naturally; so will smart contracts. A network like ChainLink will be imperative in the future, enabling and making the bridge between crypto and real world transactions easier and more agreeable. Holders of ChainLink are, and will continue being excited about the token and the networks' trajectory in the near future.