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What is chain link? Advantages and disadvantages of chain link

What is chain link? Advantages and disadvantages of chain link

If you haven’t heard about Chain Link yet, it is better to know that Chain Link is one of the most widely used projects in the digital currency space, and this type of digital currency is also known as a decentralized digital currency. The main purpose of creating this cryptocurrency was to be able to establish communication between companies outside the blockchain and inside the blockchain. In the continuation of this article, we are going to answer the question of what is a chain link, so stay with us to get information about it.

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What is China Link?

As we said, this Link digital currency is a technology that connects non-blockchain companies with blockchain companies, and this middleware digital currency connects blockchain-based smart contracts with external data such as stock prices. Makes. By paying link currency to network operators, smart network contracts will be executed.

Chain Lake is known as a decentralized oracle network based on the blockchain network. Link digital currency uses blockchain technology because it can get calculations inside and outside the blockchain, and it is also better to know that it also supports hybrid smart contracts for its users. Now that we have given an explanation to the question of what is a chain link, in the following, we want to refer to how it works in the block network, and you can also go to the best ways to get Ethereum by receiving information from the site on how to mine Ethereum.

Read more: What is Frax digital currency?

How does chainlink work?

In the title of what is Chain Link, we said that the digital currency of Chain Link is a decentralized network, in this way, resources outside the blockchain are collected through the oracle of corrections, and it prepares for smart contracts within the blockchain, which will continue. We will refer to how Link digital currency works. When a smart contract needs to receive information, it sends a request to receive information. The chain link digital currency contract is such that the sent request is considered an event and after that it creates other smart contracts as SLA from sources outside the blockchain to collect data.

It is better to know that the SLA contract creates three sub-contracts, which are: credit contract, order matching contract and aggregation contract, each of which we will explain. Validity contract: This contract evaluates and verifies the history of the Oracle node to increase the confidence of its good performance, and removes unreliable nodes during this process. Order matching: In this contract, it submits requests to the node and receives offers instead, and in the following process, it determines the correct type and number of nodes to respond to the request. In the aggregation contract, the information collected and selected by Oracle is collected and evaluated for final approval.

Read more: Digital currency training course

How much is the China Link fee?

The transaction costs in Link digital currency are very small, but the price of your currency may increase, and also with the increase in the demand for off-chain data, there is a possibility that the costs for performing smart contracts will increase. It is better to know that each exchange has different fees and charges that are different from each other. The lowest transaction fee is 0.1% of the total transaction amount and it may reach 0.2% in some cases. Therefore, the withdrawal fees are different in each exchange, and maybe in some exchanges this amount reaches 0.10% for each withdrawal, so you can reach the lowest amount of fees in your transactions with the best Iranian digital currency exchange.

What are the benefits of China Link?

As we mentioned, Chain Link is designed to collect data outside the chain that smart contracts are designed to answer the question of what are the benefits of Chain Link, we have mentioned the most important advantages of this blockchain.

Connecting to different APIs

Chainlink has put in place an on-chain programming language designed to translate requests sent to it from an off-chain language. Smart contracts have the ability to provide data requests from any external sources, which is possible if security, decentralized access and resource accuracy are ensured.

Send payment globally

Now that smart contracts have full access to external information sources, they can create stronger and more comparable contracts with global payment sending capabilities through Oracle’s decentralized networks.

End to end encryption

The Oracle network collects correct data using end-to-end encryption to prevent smart contract information from being disclosed to external sources.

 Increasing the performance of smart contracts

In the old days, China Lin had little access to external resources, but with the passage of time, the ability to connect smart contracts to infinite input and output data has been provided, and it can be said that the efficiency and performance of smart contracts has increased a lot nowadays.

Constantly updating the project

The group that has tried to build this cryptocurrency is constantly adding new features that can increase its efficiency and allow more people, companies or businesses to trust these smart contracts.

last word

What is chainlink was the question that we answered in this article to introduce you to another digital currency technology. To send requests, Chainlink uses a translation system that translates off-chain data into understandable language in smart contracts. This Link digital currency is a decentralized cryptocurrency that collects data information through the Oracle network and prepares for contracts that are included in the blockchain.

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