Buy Chainlink

Chainlink is a decentralised oracle network that connects blockchains to real-world data, and LINK is the cryptocurrency that powers it. It acts as a secure bridge, allowing smart contracts to use information from outside their own blockchain.

It helps to separate two names. Chainlink is the network and project, while LINK is the token used to pay for its services. Chainlink is not its own blockchain. Instead, it works across many different blockchains, and LINK exists as a token on Ethereum and other networks.

Smart contracts can only act on the information available on their own blockchain. Chainlink solves this by feeding them reliable external data, such as asset prices, exchange rates or real-world events, through a network of independent operators. This is often called solving the "oracle problem," and it is why Chainlink is widely used across decentralised finance (DeFi) and other applications.

What is Chainlink used for?

Chainlink is mainly used to supply smart contracts with accurate, tamper-resistant data from the outside world. LINK is the asset used to pay for these data services and to help keep the network honest.

LINK is used to:

• pay node operators for delivering data to smart contracts
• be staked by node operators as a guarantee of reliable, honest service
• interact with Chainlink services across DeFi and other applications

Chainlink is best known for its price feeds, which many DeFi applications rely on to value assets and process transactions correctly. Its services have expanded over time to include tools for connecting different blockchains and bringing real-world assets on-chain.

LINK has a fixed maximum supply of 1 billion tokens. Unlike some networks, Chainlink does not burn LINK as part of normal use. New tokens enter circulation gradually from a reserve, which means the circulating supply increases over time up to that fixed limit.

The history of Chainlink

Chainlink was proposed in 2017 by Sergey Nazarov and Steve Ellis, who set out to solve a key limitation of smart contracts: their inability to safely access data from outside their own blockchain. The project raised funds through a token sale in 2017, and the Chainlink network launched in 2019.

A defining feature of Chainlink is its focus on being reliable infrastructure rather than a consumer product, which is why it is often described as middleware for the blockchain world. You can find out more on the official Chainlink website.

Since launching, Chainlink has become one of the most widely used pieces of infrastructure in crypto, with its data feeds supporting a large share of decentralised finance. People buy LINK for many reasons, including paying for Chainlink services, taking part in the network, or gaining exposure to the Chainlink ecosystem.