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/
Everything You Need to Know About Binance USD
Binance USD (BUSD) is a fiat-backed stablecoin designed to address issues of accessibility, flexibility, and speed on the blockchain. A cryptocurrency exchange leader, BUSD, is currently the second-largest stablecoin on the blockchain by market cap.
This flexible cryptocurrency is stable, regulated, and can be swapped on multiple blockchains. Investors can use BUSD on the Ethereum chain, Binance Chain, and Binance Smart Chains.
Binance USD (BUSD) was created to be a safe investment for cryptocurrency investors looking to invest in a low-volatility stake. This cryptocurrency is pegged at the value of the US Dollar. The New York State Department of Financial Services regulates Paxos, the creators of this currency.
USD is a fiat-backed stablecoin backed by Paxos instead of a government. As a result, Paxos holds the equivalent of the total amount of BUSD in US dollars in its financial reserves. BUSD is a stablecoin that keeps pace with the price of the United States dollar.
When the price of the dollar rises or falls, the price of BUSD fluctuates as well. Paxos issues monthly audits to verify collateralization.
1. BUSD is regulated
2. Fiat-backed stablecoin backed by a reserve
3. 1:1 ratio price fluctuates with US Dollar
4. Operates on multiple blockchains
Paxos and Binance created Binance USD.
Binance USD (BUSD) was launched in September 2019 as a partnership between Paxos and Binance.
They first issued BUSD on the Ethereum blockchain as ERC-20 tokens. Binance USD is one of only three cryptocurrency tokens currently approved by Wall Street regulators. The New York-based financial company Paxos issues BUSD tokens.
Paxos collateralize BUSD tokens by holding equivalent dollar amounts in regulated US bank accounts. Paxos is also responsible for creating and burning BUSD tokens.
Paxos and Binance designed BUSD to be a low-volatility investment for crypto traders seeking highly liquid investments. Investors can easily convert their BUSD investment into fiat-backed currency during times of volatility.
Cryptocurrency experts recommend taking security measures like using two-factor authorization (2FA) to manage online Binance USD accounts and wallets. Serious investors use Binance USD wallet software to store, protect, and manage investments. They do this by using public and private keys to store value.
We do not provide investment advice. Cryptocurrency traders looking to invest in Binance USD should do their research on the history and performance of BUSD and choose the best options that fit their investing style and budget.
It’s important for investors to consider how much they can afford to lose on investments with downturns before committing to any investment. The creators of Binance USD designed BUSD as a low-volatility asset for crypto traders seeking high liquidity. This stablecoin’s goal is to remain stable and as close to the value of one dollar as possible. While its performance appears stable, this can change at any time.
What are Candlesticks and How to Read Them
A candlestick is a type of price chart used in technical analysis to forecast the future price direction of stocks, commodities, and cryptocurrencies. Each candlestick is a graphical representation of a price movement for a specific period. Four different price points are displayed on each candlestick. They include open, high, low, and close.
Candlesticks are one of the oldest forms of technical analysis. According to historical records, candlestick charting can be traced back to Japanese rice merchants during the 18th century. Most financial historians agree that Munehisa Homma was responsible for popularizing candlestick charting.
Candlestick formations are based on a strict set of rules which are universally accepted among all traders and investors. Let’s review a few of the most basic candlestick formations and patterns.
A solid red candlestick is displayed if the opening price is above the closing price (Chart #7).
A hollow candlestick is displayed if the closing price is above the opening price (Chart #8).
Bullish Candlestick Patterns
Big White Candle – The market opens near the low and closes near the high (Chart #9).
Doji – The opening and closing price is virtually identical (Chart #10).
Hammer – A candlestick that consists of a small body near the daily high with a long lower tail (Chart #11).
Bearish Candlestick Patterns
Big Red Candle – The market opens near the high and closes near the low (Chart #12).
Inverted Hammer – A red or white candlestick within an upside-down hammer position (Chart #13).
Shooting Star – A red or white candlestick with a small body, a long upper shadow combined with little or no upper tail (Chart #14).
Brief Summary of Candlesticks
- A candlestick is a type of price chart used in technical analysis.
- Each candlestick represents price movement for a specific period of time.
- Four different price points are displayed on each candlestick.
- The price points include open, high, low, and close.
- Candlesticks are one of the oldest forms of technical analysis.
- Candlestick charting was first used by Japanese rice merchants during the 18th century.
- Munehisa Homma was responsible for popularizing candlestick charting.
- Candlestick formations are based on a strict set of rules.
- These rules are universally accepted among all traders and investors.
What Is an IEO?
An Initial Exchange Offering (IEO) is a type of token sale administered by a cryptocurrency exchange. The entire process is controlled and managed by the exchange on behalf of the crypto company. Both parties have a vested interest in the success of the IEO. Neither party receives a payout unless investors purchase the token through the participating exchange. Therefore, it’s not uncommon for the exchange and the token issuer to join forces to help with marketing, promotions, and advertising.
Before launching the IEO, the crypto exchange and token issuer sign an agreement outlining the payout structure. Typically, the token issuing company is required to pay a listing fee along with a percentage of tokens sold through the crypto exchange. The majority of IEO agreements stipulate that the new token must be listed on the exchange for a predetermined amount of time following the initial sale of the token.
Investors who participate in the IEO are required to open an account with the participating crypto exchange. Instead of sending money to the token issuer through a smart contract, the investor deposits funds into his/her crypto account. Funds are dispersed by the crypto exchange to the crypto company.
IEO Versus ICO
As you may recall from our ICO discussion, the first ICO was launched in 2013. However, the ICO explosion did not occur until 2017, followed by its peak in 2018. Without question, the chief complaint within the crypto community concerning ICOs was a large number of failures and outright scams. In fact, the failure rate approached 90% in 2018.
As we have discussed several times, the cryptocurrency community is incredibly innovative. This community is filled with some of the brightest minds in global finance. Not surprisingly, a small group of young men and women were quick to replace problematic ICOs with IEOs in early 2019. The first major crypto exchanges to join the IEO wave occurred in January 2019. IEO activity continues to flourish in 2020.
The main difference between IEO and ICO is the level of success. In a typical ICO, the crypto company received funding immediately upon issuance of the token. Investors had very little recourse once the tokens were dispersed. They were trapped in a vulnerable position. Sadly, many unscrupulous start-up firms basically disappeared upon receipt of the funds commonly known as a ‘rug pull’.
IEOs solve this problem by preventing the token issuer from receiving funds immediately upon the distribution of the tokens. As we discussed earlier, both parties work together to ensure the success of the project, which increases the likelihood of a rising token price.
Although IEOs have only been in existence for two years, the popularity of this new fund-raising method has increased substantially. The success rate of projects launched on IEO is much higher compared to ICOs. Most likely, this trend will continue.
IEO Regulatory Environment
As you may recall from our ICO discussion, crypto companies struggled to clear all of the regulatory hurdles to satisfy financial regulators. Unfortunately, IEO participants, are experiencing the same type of regulatory problems that plagued the ICO marketplace. This by and large means that regulators dissuade people from taking part in IEOs.
A positive to this is that IEOs are largely unregulated and don’t have to satisfy bureaucracy that can stifle innovative projects.
Financial regulators, particularly in the United States, claim that an initial exchange offering is similar to an initial coin offering, even though the token issuer is not directly involved in the sale of the token. An ongoing problem with regulation is whether or not any particular token counts as security and needs regulation, or whether they are utility tokens. Exchanges will typically avoid listing securities on an IEO as it means they have to submit to regulation.
To avoid the strict regulation requirements around securities, crypto exchanges may even opt not to offer tokens in countries like the United States where there is ambiguity about regulation. As long as the IEO is not soliciting in a particular country, registration is not required.
Due to the overwhelming success of IEOs, many of the world’s largest crypto exchanges are becoming heavily involved in IEOs by offering tokens on behalf of start-up companies. Most likely, this trend will continue.
Brief Summary of IEO
- An initial Exchange Offering is a token sale administered by a crypto exchange.
- The entire process is overseen by the crypto exchange.
- Neither party receives a payout unless investors purchase the token.
- The exchange and token issuer will often collaborate with marketing and advertising.
- Both parties sign an agreement outlining the payout structure of the IEO.
- The new token will be listed on the exchange for a predetermined time period.
- Participating IEO investors are required to open an account with the exchange.
- Investors pay for the token by depositing funds into their crypto account.
- IEOs have proven to be safer than ICOs.
- Many crypto exchanges are not participating in heavily regulated countries.
- IEOs have become very popular in the crypto universe.
- Crypto News1 year ago
Kryll (KRL), LCX (LCX) SUKU (SUKU) and OriginTrail (TRAC) are launching on Coinbase Pro
- Blockchain1 year ago
DeSo Announces $50 Million In Funding for Developers
- Blockchain1 year ago
DeSo | Decentralized Social Media Network
- Bitcoin12 months ago
Simple Analogy Explains How Bitcoin Works
- Crypto News1 year ago
Unpacking The DESOlaters with William Laurent
- Blockchain12 months ago
DeSo : Decentralizing Social Media Apps
- Crypto News12 months ago
Multichain Metazens Emerged In The Metaverse
- Blockchain1 year ago
How to Get Free DeSo Crypto