BISON Blog

New Cryptocurrency at BISON: Chainlink (Link)

As of now, two new cryptocurrencies can be traded in the BISON app: Chainlink (LINK) and Uniswap (UNI). Both are among the top 15 cryptocurrencies in the global crypto market according to market capitalization. LINK and UNI add to the BISON app’s current portfolio of five tradable coins: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP (XRP) und Bitcoin Cash (BHC).

In this blog post, we’ll introduce you to the LINK token, as well as the company behind it – Chainlink.

Who's behind Chainlink?

Chainlink is a decentralized Oracle network that provides a world-leading way to securely and reliably connect real-world information to the blockchain. In doing so, Chainlink addresses the well-known “smart contract connectivity problem” or the “Oracle problem.” The network was founded by Sergey Nazarov, Steve Ellis, and Ari Juels. In 2017, investors were able to buy LINK for 0.11 USD via an Initial Coin Offering (ICO) – the funding of companies based on their own cryptocurrencies – and mobilized a total of 32 million USD for the young blockchain startup.

What Is LINK?

LINK is a cryptocurrency from the company Chainlink, classified as an ERC20 token. This means LINK is based on the ERC20 standard of the Ethereum blockchain. This standard allows for the creation of inherently standardized tokens by specifying certain token metrics and behaviors. Likewise, ERC20 ensures that a smart contract is uniformly executed on the ETH blockchain and ensures interoperability among smart contracts. Through the “Transfer and Call” function within ERC223, smart contracts can receive and process LINK in one step. On the network, Chainlink nodes perform computational operations to translate the crypto world’s language into a programming language that is understandable to the real world. The cryptocurrency LINK is used as payment for the nodes.

The number of LINK tokens is capped at 1 billion, of which about 452 million are currently in circulation. LINK reached an all-time high on May 9th, 2021, with a price of 45 EUR.

What Exactly Are Oracles?

In principle, off-chain data, i.e., data and information outside the blockchain network, cannot be easily interpreted in the context of on-chain applications, such as smart contracts. This requires oracles.

Oracles are an important technical interface between the crypto world and real world databases, applications, and events. They provide smart contracts with verified information outside the blockchain. Smart contracts have previously specified the terms of the contract according to the principle: “If condition X (in the real world) has occurred, Y will be executed”.
BISON Blog | How Chainlink works
In the case of Chainlink, if a user wants to access data outside the blockchain, a request is submitted to the Chainlink network and processed through smart contracts located on the blockchain. The smart contracts assign different, independent oracles to verify the request and match certain information from the agents:
  • Does the Oracle provider have integrity (reputation contract)?
  • What services do other Oracles provide (order-matching contract)?
  • Does the data collected match (aggregation contract)?
Once all conditions are met, the user can access off-chain data via the smart contract and thereby integrate it into the blockchain. The on-chain transactions associated with this process are paid for with LINK.

Conclusion

Since its launch in 2017, the crypto token LINK has transformed the interface between the real world and the crypto world, and is already available on several cryptocurrency trading platforms. We believe that LINK is a great addition to our portfolio – we’re excited to be able to offer it for buying and selling in the BISON app.