What is Chainlink (LINK)?
Chainlink is a cryptocurrency infrastructure that connects real-world data with smart contracts on a blockchain network. These networks can be data providers, application programming interfaces (APIs), enterprise systems, cloud services, IoT devices, payment systems and other blockchains2.
Smart contracts, or smart contracts in English, are contracts on the blockchain, and the Chainlink platform aims to facilitate their execution.
Despite their security and reliability, blockchain networks cannot obtain and distribute data to systems that are not part of the blockchain (off-chain). This is where Chainlink comes in: this system links smart contracts to different types of data, payments and real events.3. To put it simply, Chainlink makes the link between oracles or external data sources and the blockchain4.
LINK is a tradable cryptocurrency that can also be purchased when one wishes to own a share of the Chainlink network. LINK tokens can be used to process transactions through smart contracts on the Chainlink network.
During Chainlink’s initial coin offering (ICO, initial coin offering), one billion tokens were distributed4.