What is Chainlink?
Chainlink (LINK) is a cryptocurrency designed as a smart contract solution to increase security and reliability. Its purpose is to verify assets in decentralized blockchain oracle networks. The founders designed LINK cryptocurrency technology with on-chain infrastructure and off-chain infrastructure.
On-chain infrastructure or “oracles” process offline data requests and verify real-world data to users on the Ethereum blockchain. Chainlink’s off-chain infrastructure comprises proprietary “nodes” that collect and report real-world data.
Founders of Chainlink say that it supports smart contracts on any blockchain. It provides users with cryptographic proofs for on-chain smart contracts. They use custom-built APIs to connect Chainlink to real-world assets and data information sources offline.
The Chainlink technology is a scalable proof-of-reserves solution designed to work with all current and future blockchains.
Suggested Read: Blockchain and Artificial Intelligence – Cryptobite
Who Created Chainlink?
Chainlink’s authors include Sergei Nazarov, Steve Ellis, and Dr. Ari Juels.
When Was Chainlink Launched?
The founders announced the Chainlink protocol in 2017 via white paper. Chainlink officially launched in 2019 on the Ethereum network.
What Is The Price of Chainlink?
How Does Chainlink Work?
Built on the Ethereum platform, Chainlink is a cryptocurrency solution designed to provide tamper-proof data from on-chain and off-chain sources. Chainlink uses the decentralized blockchain oracle network and APIs to verify proof-of-reserves for smart contracts.
It links with real off-chain assets to make sure traders on the platform have enough collateral off-chain to cover on-chain trades.
This technology integrates with all known blockchains in the cryptocurrency ecosystem to verify the reserves of stablecoins like Wrapped Bitcoin (WBTC).
Secure features reduce the risk of hacking and breakdowns in centralized servers.
They tasked Chainlink’s Keeper nodes with the job of automating smart contracts. The platform helps stakeholders verify stablecoin collateral using a proof-of-reserves system.
Proof-of-reserves is an audit system that allows the Chainlink system to integrate with and audit the reserves of leading off-chain cryptocurrencies like Wrapped Bitcoin WBTC.
Chainlink’s proof-of-reserve provides proof of cryptocurrency collateralization that verifies smart contracts against the records of off-chain reserves.
It operates using its proprietary “Keeper” nodes and a built-in proof-of-reserves audit system to automate smart contracts and provide proof-of-collateralization for a wide variety of cryptocurrencies using blockchain technology.
They originally built Chainlink on the Ethereum network using an extension of an ERC-20 token known as ERC-677. ERC-677 tokens issued by LINK keep the same capabilities and functionality as their ERC-20 counterparts. Users holding ERC-677 tokens can use them interchangeably in the Ethereum ecosystem.
- Uses tokens as data feeds to connect on-chain smart contracts with off-chain reserves.
- Tamper-proof system
- Reduces the likelihood of theft, lack of collateralization, and duplicate transactions.
- Rewards node operators for retrieving the data from on-chain smart contracts.
- Integrates with all blockchains
- Connects to web data sources using secure HTTPS
- Operates using zero-knowledge proofs to protect personally-identifying information
How to Keep Your Chainlink Safe
Chainlink operates on the Ethereum blockchain. This makes it easy for LINK token holders to secure and store their value in ERC-20 compatible smart wallets. ERC-20 tokens and ERC-677 tokens in the Ethereum ecosystem have the same functionality, including the option for secure storage in hardware wallets and cold storage wallets.
These secure storage technologies provide traders with private keys that only they can access. Secure wallet technologies offered by third-party’s offer LINK holders secure storage solutions where cryptocurrency investments are trackable online via desktop and laptop computers.
Is Chainlink a Good Investment?
We do not provide investment advice. This historical analysis of performance is for informational purposes only. It’s important to do your research before investing in Chainlink or any other cryptocurrency. They designed Chainlink to address issues of tampering, theft, and fraud on the Ethereum blockchain. This cryptocurrency has received mostly positive reviews about its technology since its official launch in 2019.
Chainlink’s total supply hovers around 1 billion LINK. It has a market dominance of just under 0.40%. The LINK token started out with a value of around $0.11. It reached its all-time high of $52.88 in May 2021. Chainlink currently ranks at number 22 in the top 50 cryptocurrencies by market cap.
There is a potential risk involved in any investment. Think about how much you can afford to invest. Before you invest, figure out how much you can afford to lose. Learn more at: https://chain.link/
What Is Elliott Wave?
Ralph Nelson Elliott was regarded as one of the greatest technical analysts of the 20th century. In the early-1930s, Elliott began working on a systematic study of fluctuations in the stock market. Based on his analysis, he concluded that fluctuations in the stock market were mainly based on collective human behavior.
Elliott believed that all speculative markets followed fairly predictable price movements based on investor psychology and underlying social principles. In 1938, he combined all of his research into a book called The Wave Principal.
Elliott’s book was very well received within the investment community, particularly among traders who relied on technical analysis.
The Elliot Wave Principle
Elliott passed away in 1948, leaving behind a treasure trove of historical data and research based on his Wave Principal. Elliott’s original work in the field of human behavior actually became more popular in the years following his death.
Several technical analysts expanded on his research, particularly in the area of investor psychology. This additional research also looked at crowd psychology and the herd mentality of crowds. Today, Elliott Wave is one of the most popular forms of technical analysis used to forecast the stock market and other speculative markets.
The Elliott Wave Principal moves between optimism and pessimism in natural sequences. These mood swings create various patterns or waves. Based on Elliott’s model, all market prices fluctuate between impulse and corrective phases. These fluctuations occur regardless of the time frame. In other words, Elliott Wave can be successfully applied to long-term studies or short-term studies.
Suggested Read: Everything You Need To Know About Binance Coin – Cryptobite
Impulse Phases and Corrective Phases
Impulse phases are subdivided into five smaller waves. Corrective phases are subdivided into three smaller waves. In a bull market, waves #1, #3, and #5 of the impulse phase are bullish. Waves #2 and #4 are retracements of the primary bullish trend.
In a bear market, waves #1, #3, and #5 are bearish. Waves #2 and #4 are retracements of the primary bearish trend. The big move always occurs in wave #3.
Waves #1, #3, and #5 are also known as motive waves. These waves always move with the underlying trend. Waves #2 and #4 are also known as corrective waves. They move against the underlying trend. Please review Chart #15.
Each motive wave and corrective wave has its own sub-cycle. Each sub-cycle is divided into mini waves. An entire Elliott Wave motive pattern consists of 89 waves, followed by a completed corrective pattern of 55 waves.
During his initial research, Elliott subscribed to the idea that each completed wave pattern represented a degree of movement based on a specific time frame. Each degree of movement was given a name.
Elliott labeled nine different degrees of movement.
- Grand Supercycle – multi-century
- Supercycle – multi-decade
- Cycle – multi-year
- Primary – months
- Intermediate – weeks to months
- Minor – weeks
- Minute – days
- Minuette – hours
- Sub-minuette – minutes
A grand supercycle is the longest degree of movement based on Elliott’s research. The reversal of a grand supercycle is incredibly rare. Most traders and investors will never see a grand supercycle reversal in their lifetime.
Although Elliott Wave has been extremely popular over the past several decades, the main criticism of this trading approach is based on the fact that the entry and exit levels are too subjective.
Additionally, the wave counts are open to interpretation. In an attempt to remedy this problem, many traders who use Elliott Wave on a daily basis prefer to combine the wave counts with Fibonacci ratios. Adding Fibonacci ratios to the mix provides specific entry and exit signals.
Elliott Wave is not perfect. It continues to remain one of the most widely followed trading techniques in the history of technical analysis.
Brief Summary of Elliott Wave
- Ralph N Elliott is regarded as one of the greatest technical analysts of all time.
- In the early-1930s, Elliott began to study fluctuations in the stock market.
- He observed that fluctuations in the stock market were based on human behavior.
- Throughout the 1930s, Elliott developed a systematic investment approach.
- The investment approach was based on his observations concerning human behavior.
- Following his death in 1948, traders continued to study Elliott’s original work.
- Elliott’s methods actually became more popular during the years following his death.
- His methodology became known as the Elliott Wave Principle.
- Elliott Wave Principal moves between optimism and pessimism in natural sequences.
- These mood swings create various patterns or “waves.”
- All prices fluctuate between an impulse phase and a corrective phase.
- According to Elliott, these fluctuations will occur regardless of the time frame.
- Therefore, Elliott Wave can be applied to long-term studies or short-term studies.
- In a bull market, waves #1, #3, and #5 are bullish.
- Waves #2 and #4 are retracements of the primary bullish trend.
- In a bear market, waves #1, #3, and #5 are bearish.
- Waves #2 and #4 are retracements of the primary bearish trend.
- An entire Elliott Wave motive pattern consists of 89 waves.
- This is followed by a completed corrective pattern of 55 waves.
- Elliott believed that each completed wave pattern represented a degree of movement.
- Each degree of movement was based on a specific time frame.
- Elliott labeled nine different degrees of movement.
- Elliott Wave continues to remain extremely popular among technical analysts.
What Is Hashing?
In simple terms, a hash is a function that converts an input of letters and numbers into an encrypted output of a fixed length. A hash is an essential ingredient of blockchain technology. As you may recall, we discussed hashing during our conversation about cryptocurrency mining. Hashing plays a critical role in the mining process, as miners collect transactions and organize them into blocks.
The most important component of a cryptocurrency is the blockchain. We will discuss blockchain technology in a later section. For the purpose of our hashing conversation, it’s important to know that a blockchain is formed by linking together individual blocks of transaction data. To prevent fraudulent transactions, the blockchain only contains validated transactions. These validated transactions are a series of encrypted letters and numbers, known as a hash.
Hashing involves processing the data from a block through a mathematical function, thus creating a fixed-length output. This increases security based on the fact that anyone trying to decrypt the hash won’t be able to determine the length of the input based solely on the length of the output.
A great way to think of how hash functions work on a blockchain is that they act as a digital signature. For the next block to be made, the signature (hash) from the previous block MUST match that of the next block. This is why blockchain tech is considered so secure.
Cryptographic Hash Function
In addition to cryptocurrencies, hashing and hash functions are used across many industries. A cryptographic hash function is a special class of hash function that has unique properties making it well suited for cryptography. A cryptographic hash function contains three specific properties needed to ensure security. Let’s briefly review each property.
This means that you will always receive the same result no matter how many times you pass a particular input through a hash function. This property is very important because it becomes impossible to track the input properly if you receive different hashes.
The hash function must be capable of returning the hash of input quickly and accurately. If the process isn’t fast enough, the system becomes inefficient.
It is infeasible to find two different messages with the same hash value.
Without question, hashing is a difficult concept to understand. Thankfully, it’s not necessary for the average crypto user to fully grasp the idea of hashing. In reality, miners are the only people in the crypto community who work with hashing and hash functions daily.
Hashing and hash functions have been in existence well before Bitcoin arrived on the scene in 2009. Bitcoin (and cryptocurrency in general) has used hashing to create a decentralized money system that will one day be viewed by financial historians as arguably the greatest innovation in the history of money.
Brief Summary of Hashing
- A hash converts an input of letters and numbers into a fixed-length encrypted output.
- Hashing plays a critical role in the mining process.
- Through hashing, miners are able to validate all transactions on the blockchain.
- Hashing and hash functions are used across many industry groups.
- A cryptographic hash function is a special class of hash functions with unique properties.
- Cryptographic hashes are deterministic, quick, and have preimage resistance.
Everything You Need To Know About Binance Coin
What is Binance Coin?
Blockchain and cryptocurrency cover a wide range of assets and projects that serve different purposes. For instance, there are several types of crypto exchanges, with each crypto being unique in terms of construction and features.
Binance coin is a cryptocurrency issued by the Binance exchange and trading as a BNB symbol. Similar to other cryptocurrencies, Binance Coin offers multiple uses beyond the Binance Exchange. For instance, it can be used for trading, credit card payments, transaction fees, booking travel arrangements, entertainment, investment, and loans and transfers. It is currently among the most prominent cryptocurrencies globally, with over 1.4 million transactions per second.
Suggested Read: What Is an ICO, and What is it for? – Cryptobite
Binance Coin was created in 2017 by Changpeng Zhao, a developer who had created high-frequency trading software.
Binance Coin was launched in July 2017.
What Is The Price of Binance?
Being a cryptocurrency, BNB operates the same way as digital assets in the market—it rises and falls in value depending on how people use and trade it. It can be held in compatible wallets off crypto exchanges and sent directly to others as a form of payment or for other uses. It can be traded for other currencies or cryptos on various exchanges.
Binance Coin can also be used as a form of payment for crypto credit card bills through the Crypto platform. Businesses can also offer BNB as a form of payment for the goods and services they sell as an alternative to the traditional currency; for instance, book travel arrangements such as flights and hotels and buy lottery tickets. BNB is a sought-after option for investing in EFTs, stocks, and other investment opportunities.
How does one get BNB? Having understood the several purposes of the Binance Coin, where and how to get it is a question that crosses many people’s minds. It can be acquired through various platforms, and the most notable way is through Binance Exchange, the crypto’s own exchange. One can get BNB in four critical steps.
- Get a Binance Coin wallet, also known as coinomi or ledger
- Locate your own BNB address
- Sign up for Binance
- Buy Binance Coin with either a credit card or another crypto
BNB works in tandem with two blockchains—Binance Chain and Binance Smart Chain (BSC). While BSC is a separate blockchain built into the Binance Chain, it runs parallel to BC and carries different features like smart contract capability.
BC was designed for optimal performance. In fact, BC was based on a decentralized exchange (DEX) owned by Binance. Nonetheless, it was limited in allowing developers to build solutions. Therefore, BSC was designed to add more capabilities to the BNB ecosystem, thereby giving developers more functionality. An example is the smart contract functionality available on BSC and not BC.
Binance is currently the most popular and most used exchange to buy and sell coins and tokens. However, is it safe to leave or hold coins on the platform? Cryptosec confirms that Binance is safe and maintains its security in two ways. Firstly, Binance has cold storage where most of the funds are stored, making it significantly difficult to steal funds. Secondly, it has a SAFU fund used to store 10% of trading fees received on their emergency fund. This ensures that users who get their funds stolen can be compensated.
Despite the measures above, being the most popular cryptocurrency exchange means Binance will continue to be a target for hackers. Therefore, it offers guidelines on how users can secure their cryptos. For instance, using regulatory compliant centralized exchanges by AML and KYC checks when trading cryptos. However, prioritize peer-to-peer trading and decentralized exchanges with audits.
Binance offers multiple security options for storing cryptos. One of the ways includes keeping cryptos on regulated exchanges, especially if someone is a newcomer. Using a non-custodial wallet where a user owns the keys provides more security. A more secure option is to keep it in a wallet not connected to the internet. Also, using audited DApps can improve security.
We do not provide investment advice, only objectively presenting factual data around virtual currencies. That said, even though cryptocurrencies are highly volatile, BNB can be an excellent investment for long-term investors. It is the most popular crypto for a reason; it is attractive to investors. Binance Coin was only introduced to the market less than four years ago, and it has since rapidly grown. It also aims to revolutionize the cryptocurrency space through tokenomics and utilities.
- Crypto News9 months ago
Kryll (KRL), LCX (LCX) SUKU (SUKU) and OriginTrail (TRAC) are launching on Coinbase Pro
- Blockchain10 months ago
DeSo Announces $50 Million In Funding for Developers
- Blockchain11 months ago
DeSo | Decentralized Social Media Network
- Bitcoin8 months ago
Simple Analogy Explains How Bitcoin Works
- Crypto News10 months ago
Unpacking The DESOlaters with William Laurent
- Blockchain8 months ago
DeSo : Decentralizing Social Media Apps
- Crypto News8 months ago
Multichain Metazens Emerged In The Metaverse
- Blockchain10 months ago
How to Get Free DeSo Crypto