Buy Chainlink

Chainlink is a decentralized oracle network. It supplies blockchains and smart contracts with data and services they cannot obtain on their own, such as asset prices, interest rates, proof that reserves exist, verifiable randomness and messages sent between different blockchains.

Chainlink is not a blockchain. It is infrastructure that runs alongside many blockchains, which is why the same Chainlink services appear on Ethereum, Solana, Avalanche and dozens of other networks. The project was outlined in a 2017 whitepaper by Steve Ellis, Sergey Nazarov and Cornell professor Ari Juels, and its first main network went live in May 2019. Development is led by Chainlink Labs, while the oracle nodes themselves are operated by independent organizations.

LINK is the network's token. It is used to pay node operators and to back service quality through Chainlink Staking.

What problem does Chainlink solve?

Blockchains cannot reach outside themselves. A smart contract on Ethereum has no way to look up the dollar price of gold, check whether a payment cleared or read a weather report, because every node must be able to reproduce the same result independently. Anything from the outside world has to be delivered on chain by an oracle.

That creates the oracle problem. If a contract holding hundreds of millions of dollars trusts a single data source, that source becomes the weakest link. Corrupt or break it and the contract behaves exactly as an attacker wants, no matter how well written the contract is. Most large losses attributed to smart contracts have come from bad data or manipulated prices rather than flawed contract logic.

How does Chainlink work?

Chainlink answers the oracle problem with decentralized oracle networks, usually shortened to DONs.

1. A group of independent node operators each retrieve the same information from several sources.
2. The nodes compare results off chain and agree on a single value, typically by taking the median so one bad source cannot drag the answer away from reality.
3. The agreed value is signed and written on chain in one transaction, where any contract can read it.

Node operators are independent businesses rather than Chainlink employees, and the group includes telecommunications and technology firms alongside dedicated infrastructure providers. Because the result depends on many operators and many data sources, there is no single point of failure for an attacker to target. The technical detail is documented in Chainlink's developer documentation.

What is LINK used for?

LINK is an Ethereum based token, issued under the ERC-677 standard, which is backwards compatible with ERC-20. It has three main roles.

• Paying for oracle services. Applications pay node operators in LINK for data and computation.
• Backing service quality. Node operators and holders can lock LINK in Chainlink Staking, which supports a decentralized alerting system for oracle performance. Node operators who fail their commitments can lose part of their stake.
• Aligning node operators with the network. Operators who hold and stake LINK have something to lose if they provide poor data.

Total supply is fixed at 1 billion LINK and no more can be created. Not all of it is circulating. A share remains reserved for node operator incentives and for Chainlink Labs, and it is released gradually, so circulating supply rises over time even though total supply does not. Chainlink publishes the current position on its circulating supply page. LINK does not carry on chain voting rights over the protocol.

What does Chainlink actually provide?

Service	What it does
Data Feeds	Regularly updated on chain prices for cryptocurrencies, commodities, currencies and indices
Data Streams	Low latency data pulled on demand, used by derivatives and other fast moving applications
VRF	Verifiable random numbers that anyone can check, used in gaming and fair allocation
Automation	Triggers contract functions when conditions are met, without a person pressing a button
Proof of Reserve	Automated checks that tokenized assets are backed by the reserves their issuers claim
CCIP	A protocol for sending messages and transferring tokens between separate blockchains

Who uses Chainlink?

Lending protocols, derivatives platforms, stablecoin issuers and tokenized asset projects rely on Chainlink price data to decide when loans are undercollateralized, how contracts settle and whether assets remain backed. Chainlink is commonly measured by the total value secured across the applications that depend on it, a figure that moves with the market rather than staying still.

Institutional testing is also public and documented. In 2023 Swift ran experiments with more than a dozen financial institutions, including Citi, BNY Mellon, BNP Paribas, Euroclear and the Depository Trust and Clearing Corporation, using Chainlink's cross-chain protocol to move tokenized assets between networks. In 2024 the Depository Trust and Clearing Corporation piloted delivery of fund net asset value data on chain with Chainlink and ten financial institutions.

These are pilots and demonstrations rather than finished, mainstream systems, and it is worth reading them as evidence of interest rather than of completed adoption. Our explainer on real world asset tokenization covers the wider trend they belong to.

How does Chainlink compare with other oracle networks?

Chainlink is the oldest and most widely integrated oracle network, and it offers the broadest product range. It is not the only option.

• Pyth publishes data sourced directly from trading firms and exchanges and is designed for very frequent price updates.
• API3 has data providers run their own oracle nodes, so information comes from the source rather than through an intermediary.
• Band Protocol operates its own blockchain and supplies data to applications on other networks.

Oracles compete on how data is sourced, how quickly it updates, how many blockchains they reach and how they handle failure. Chainlink's advantage is incumbency and breadth. That position is contested rather than guaranteed, which matters if you are assessing LINK on the basis of long-term demand for the network. For background on the applications that consume this data, see our guide to decentralized finance.

Chainlink on CoinJar in the US

CoinJar has operated since 2013 and lists LINK against US dollars, so you can buy, sell and hold it without converting through another cryptocurrency first. LINK also has a US dollar market on CoinJar Exchange. Current charges are on our fees page, and live US dollar rates are on our cryptocurrency prices page.

LINK sits alongside the rest of our supported cryptocurrency list, and because it is an Ethereum based token you can move it to any wallet that supports the Ethereum network. Our guide to crypto transfers explains what to check before you send.

LINK you hold with CoinJar is kept in our custody infrastructure, where private keys are split across offline and hardware protected systems so no single party can move assets on its own. You can read how that works on our security page.

CoinJar, Inc. is registered with FinCEN as a money services business, NMLS ID 2492913, and holds money transmitter licenses in a growing number of states. Registration and licensing are legal requirements, not government endorsement of CoinJar or Chainlink. Availability varies by location, so check whether CoinJar operates in your state.

What should US customers consider before buying LINK?

LINK is a volatile asset and its price has fallen sharply in past market cycles. Consider the following before you buy:

• Usage does not automatically mean price. LINK pays for oracle services, but there is no mechanism that converts network activity into a proportional increase in token value, and there is no fee burn. Adoption headlines and token demand are not the same thing.
• Supply still entering circulation. A meaningful share of the fixed 1 billion supply is yet to be released, which adds ongoing supply while it continues.
• Oracle risk is real. Decentralized aggregation makes manipulation harder, not impossible, and applications built on top of oracle data have suffered losses when feeds behaved unexpectedly during extreme market conditions.
• Concentrated development. The network is open and permissionless, but most research, upgrades and partnerships are driven by Chainlink Labs.
• Competition. Rival oracle networks are growing and target the same customers.
• No FDIC or SIPC protection. LINK held through a cryptocurrency exchange is not a bank deposit and is not insured by the Federal Deposit Insurance Corporation. It is also not protected by the Securities Investor Protection Corporation.

How is Chainlink taxed in the United States?

The IRS generally treats LINK as property for federal tax purposes. A taxable event can occur when you sell it for US dollars, exchange it for another cryptoasset or spend it on goods or services. A genuine gift is generally treated differently and does not usually create an income tax gain or loss for the giver, although separate gift tax reporting rules may apply.

The IRS explains these rules on its official digital assets page. This is general information, not tax advice. Consider speaking to a qualified tax professional about your circumstances.