What is ChainLink & How to Buy LINK Coin
What is Chainlink?
Chainlink is a decentralised intercessor that connects the off-chain and on-chain together. It was reported by its developers as a safe blockchain middleware.
Chainlink was created with the aim of linking ‘’smart contract’’ with several types of blockchains. A smart contract is a system software that is administered on a decentralised system. The smart contracts are implemented immediately the proposed contract is finished or the number of specific conditions is existing.
By allowing smart contracts the capacity to access off-chain sources such as traditional bank transactions, Web APIs and data feeds is a way Chainlink achieve the purpose it was designed.
In essence, Chainlink was designed as a blockchain that places emphasis on the on the connectivity between blockchains and other off-chain software.
The smart contract differs from the traditional contract in the sense that no one can alter the code or the contract, so the execution can't be tampered with, hence, forming a type of connection that doesn't rely on trusting any of the parties involved.
As easy as it sounds, it is actually more difficult than because a smart contract from Ethereum is not compatible with the PayPal API. The smart contract can be made to be accomplished and completed flawlessly with chainlink acting as an intermediate blockchain.
Why Choose ChainLink?
The developers who created Chainlink have the utmost confidence that smart contracts are ground-breaking for numerous sectors in business. These contracts are unable to efficiently interact with systems that are not in their blockchain network. This makes it quite tedious for the business world to utilise smart contracts.
The chainlink group’s purpose is to provide an applicable and suitable method of smart contracts to the commercial world with the help of APIs as well as other related means. The Ecosystem of the Chainlink of the LINK network and LINK cryptocurrency.
How Does Chainlink Work?
There are two modules based within chainlink, the on-chain and off-chain. Where the juice of the network is LINK, so providers of Data are compensated with LINK whereas parties that are in need of them provide the LINK for the transitional phase.
The on-chain module of chainlink places emphasis on sieving the Oracles in search of information demanded by a specific party’s smart contract.
This is carried out with the assistance of Service Level Agreement, Where this chainlink network gathers and categorises the Oracles queries using its model. Lastly, the collection is sent as collective chainlink queries to the smart contract.
The off-chain module comprises of Oracle nodes which are linked to the Ethereum system. On its own, this module gathers all information from several off-chain nodes. These off-chain nodes can be gotten from a host of industries.
How to Purchase ChainLink (LINK)
At this moment, LINK can only be purchased on EtherDelta, Bitfinex, Mercatox, and Binance. For those new to LINK and not sure how to buy LINK coin, it isn’t as direct as just depositing fiat currencies in exchange for LINK coins on these platforms.
Nevertheless, one can exchange bitcoins to purchase LINK via these exchanges.
For those new to LINK, it's best to follow the steps below on acquiring LINK.
Step 1: Make a Coinbase Account to buy bitcoin
There are numerous options to buy bitcoin. The simplest way is via Coinbase. Locate the Coinbase Signup Page and enter your full name, email then select a password.
It is a seamless registration. After creating an account, your identity needs to be verified using a driver’s license or passport. After creation and verification, the next step is to fund your account, using a debit card or a bank account. After all this you can now purchase bitcoin.
If you decide to purchase bitcoin using a credit card, Coinbase charges two-minute amounts to the card. You then have to verify the charges via your credit card's transaction history and also confirm them on Coinbase dashboard.
There are however other avenues to purchase bitcoin from. Those located in Europe can use Kraken, a euro-based exchange while those in Japan can use a yen based exchange e.g.: Coincheck
Step 2: Creating an account on Binance
Locate the Binance registration page to begin the process of opening an account.
It is a seamless and quick process to register on Binance. Binance requires you enter your email and select your password, then you’re on your way.
Step 3: Transfer BTC to Binance
Once you’re signed up to Binance, make your way to the withdrawals and deposits section located at the top right menu.
Once there, you should be able to see the available list of currencies, search for what you need which is Bitcoin. Once found, select the deposit icon which then opens a comment box where a bitcoin wallet address has been generated. Copy this massive string of numbers and letters, as they will be useful as the address to send the bitcoin to.
Make your way back to your Coinbase account, where you locate the Send/Request label.
Then paste the Bitcoin deposit address (that long string of numbers and letters) you got from the Binance site onto the Destination box, while imputing, just how much Bitcoin you want to send. Coinbase enables you to send all or a fraction of your Bitcoin balance.
All that’s left is a single click and your selected amount of bitcoin funds are sent to Binance. It does take a bit of time, ranging from 15 minutes or more, depending on the amount of bitcoin transferred to be completed.
Step 4: How to get LINK by trading Bitcoin
To achieve this you will need to first:
Find the real-time price of LINK first, and when you are pleased with it;
Select and click the “Limit” and switch to “Market”. This translates to requesting that the platform generate the newest market price or bid price.
Next, input how many LINK coins you want to purchase. Then select “Buy LINK”.
The culmination of these steps means you have traded Bitcoin in exchange for LINK. It is imperative to note that, there usually isn’t a large amount of LINK available for sale at the lowest price, so steps 1-3 might have to be repeated before all your Bitcoin has been exchanged for LINK. The amount of LINK purchased is instantly visible in your wallet.
DISCLAIMER: Cryptocurrencies like Bitcoin and Ethereum are highly volatile and risky. We cannot give you advice about what to invest in or how much to invest. You should take the information we provide in our courses and blog posts, do your own additional research on specific cryptocurrencies, and plan to decide what kind of investments work for you. We highly recommend talking to a financial advisor to understand the level of risk that you are comfortable with.
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