Chainlink: Crypto That Works Well on CoinLoan

ProductSep 16, 2021
Chainlink: Crypto That Works Well on CoinLoan

Chainlink is one of the most exciting projects in the crypto industry. It aims to hook up real-life data to blockchain and use it to execute smart contracts. Perhaps that’s why the price of LINK, Chainlink’s token, had a meteoric rise in 2020 and the project itself became one of the sensations during the 2021 Q1 bull run. Chainlink has a still a long way to go. However, a promising idea alredy caught eyes of crypto investors.

CoinLoan has added LINK to the list of available cryptos, and our team is spending a lot of time to become the number one place to exchange Chainlink, earn interest on it, borrow LINK or use it as a loan collateral. If you are still thinking of Chainlink’s strength and future potentials but haven’t reached a final conclusion, this article is for you.

ChainLink protocol emerged in September 2017 and was officially launched in 2019 on mainnet. ChainLink is a decentralized oracle network that provides input to smart contracts on the blockchain. The input is a variety of external data encompassing crypto prices, wallet queries, and even sports scores and weather data. Chainlink enables decentralized oracles that aggregate data from a network of nodes, where anything incorrect is left out after data for different sources is compared. This delivers the most accurate data to the smart contract and mitigates the risk of tampering.

To understand the underlying technology and the Chainlink value, you should be familiar with blockchain and DeFi fundamentals. Blockchains themselves cannot query and search for data - it must be provided to the smart contract from an external source. Oracles are middleware that provides external data, translating it from the real world to smart contracts located on the blockchain.

Centralized oracles provide one source of data, which leaves room for it to be incorrect, or for hackers to alter it. The DeFi sector has found a solution to this hacking risk with decentralized oracles. So let’s take a look at how Chainlink and LINK fit into all of this.

Security

The security of data feeds in the DeFi sector is crucial, and oracle manipulations have already been an issue causing losses. Since the information provided by Chainlink is verified through several sources, it solves this problem. This makes the platform a popular solution in the DeFi sphere. The whole process of a user querying for data through Chainlink oracles is powered through the Chainlink cryptocurrency, LINK.

LINK exists in two forms: as an ERC-20 token built on Ethereum blockchain and a native utility token. The former is available on CoinLoan. Chainlink has a network of node operators that provide external data. Users request data from node operators, and pay them for their work in LINK. Node operators must stake LINK in the network to demonstrate commitment to the network and incentivize good behavior.

Development

Chainlink is active in growing its business. They update their Twitter a few times daily with new integrations and announced 52 new ones in July alone. Overall, the platform is gaining more traction in the industry and is bringing on bigger node providers like Swiss Telecoms company Swisscom.

From this trend, the Chainlink value, which is tied to its utility, seems to be in good condition. The platform is forming new partnerships, dipping into the centralized finance pool, and proving its utility in the blockchain industry.

LINK has proven to be one of the strongest movers in the cryptocurrency markets of recent years. LINK price has remained above the $20 mark since the end of July, finally starting to rise steadily in price again after crashing from its high of $52.88 in May 2021. The Chainlink market cap also hit a high of $21.87 billion in May and tumbled with the price but has been on the uptrend since the end of July.

Chainlink: Crypto That Works Well on CoinLoan - photo №1
LINK in 2020 and 2021. Source: TradingView

If you’re interested in how to buy Chainlink, the CoinLoan platform offers a plethora of services with regards to LINK. There is an exchange where you can buy Chainlink, as well as sell and swap it for another crypto. If you already hold the token, you can earn 7.2% APY with a CoinLoan Interest Account, use it as collateral for a loan, or pay a loan back. You can try our products now.

If you are looking to get a loan on CoinLoan, you can do so by providing LINK as collateral. You can keep the borrowed coins in the wallet and see their value surging. Crypto-backed loan approval on CoinLoan is a quick and automatic process - after collateral submission, your lending request gets granted. Terms and conditions depend on the chosen LTV, loan period, and required digital asset. Sign up to get a loan approval today.

On CoinLoan, you can use an Interest Account (IA) for earning compound interest on your coins. IA is similar to well-known bank savings accounts but offers much better rates. All you need is to deposit LINK and see the tokens generating returns. Currently, we offer 7.2% APY on LINK tokens. Sign up to start receiving interest today.

You can buy LINK on CoinLoan through our dedicated Crypto Exchange. We offer several exchange pairs, including BTC/LINK and ETH/LINK. You can also buy Chainlink with fiat currencies.


💫CoinLoan is a universal platform for crypto and fiat assets. We help to keep your assets safe and manage them from one dashboard.

💡First time here? Visit our home page and get to know the CoinLoan lending platform a little better.

Disclaimer:
The information provided by CoinLoan ("we,” “us” or “our”) in this report is for general informational purposes only. All investment/financial opinions expressed by CoinLoan in this report are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this report.

Tags