📝 Hello everyone, I am 𝟏𝟎, welcome back to the #区块链发展史 project investment research series. Today, we will focus on "Chainlink / LINK".

Chainlink is a decentralized oracle network that connects smart contracts with external data. External data providers are called “oracles” and they share the work on the network to ensure that smart contracts have access to reliable, real-time information.

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1. Overview of Chainlink (LINK)

1. What is Chainlink (LINK)

Chainlink was launched by San Francisco-based fintech company SmartContract in June 2017. It is a decentralized oracle network platform whose core function is to provide external data support for smart contracts. The so-called "oracle" can be simply understood as a tool that helps blockchain connect with external data, such as obtaining price information or API data.

With Chainlink, smart contracts are no longer limited to on-chain data, but can obtain accurate and secure data from the outside world, greatly expanding their scope of use. Its token LINK is mainly used to pay for these data services, and can also be used to ensure network security through staking and participate in governance and decision-making.

2. Chainlink (LINK) Basic Information

According to CoinGecko data, Chainlink (LINK) currently ranks 19th in market capitalization, reaching $6.3 billion. The total supply is 1 billion, and the current circulating supply is 608 million, with a circulation rate of about 60%. It is worth noting that Chainlink has become the basis for thousands of projects, with more than 215 new projects added to the network in 2024, totaling more than 2,100.

2. Why do we need an oracle? What is the role of Chainlink?

Everyone should be familiar with "on-chain data" and "off-chain data". On-chain data refers to information securely recorded on the blockchain, which is almost impossible to tamper with; while off-chain data is traditional real-world data. In the past, the two were like parallel lines that could not communicate with each other until the emergence of oracles.

Oracles are like data porters, bringing off-chain information to the chain and supporting various blockchain activities. For example, if you bet on the World Cup on the chain, A bets on Argentina and B bets on France. If there is no oracle to pass the game results to the chain, the smart contract cannot determine the winner and the prize will be locked until the smart contract obtains reliable data.

So what counts as reliable data? It depends on the type of oracle. Centralized oracles are provided with data by a single supplier, which is prone to downtime or data tampering. In contrast, decentralized oracles such as Chainlink verify data through multiple suppliers, improving accuracy and reliability, reducing the risk of single point failure, ensuring the normal operation of on-chain activities (especially DeFi), and preventing fraud.

How Chainlink Optimizes Supply Chain Management

Chainlink solves key problems in the supply chain through its Cross-Chain Interoperability Protocol (CCIP). It enables secure data and value transfer between different blockchains, ensuring seamless integration between systems. It improves trade efficiency and expands global trade access by providing accurate market data and identity verification, supporting on-chain financing.

By converting paper documents into dynamic NFTs, supply chain documentation is digitized and automated. At the same time, unified blockchain records reduce manual errors and management costs, allowing multiple stakeholders to automatically process invoices and payments.

Chainlink also uses blockchain and IoT technologies to track and verify goods, reducing counterfeiting and fraud. By monitoring the status of goods through IoT and RFID devices, abnormal temperatures will automatically trigger insurance contracts to ensure the accuracy and timeliness of business responses. Ultimately, it provides a transparent view of the entire supply chain while protecting business secrets and personal information, allowing all participants to obtain the information they need.

4. Chainlink’s Partners and Ecosystem

Chainlink currently has more than 1,000 partners, including major companies such as Google Cloud Platform, Oracle, Swift transfer system, Ethereum, Cardano, Polygon, Solana, etc., and is building a powerful ecosystem for the future.

The fact that so many well-known companies choose to cooperate with Chainlink also proves the strength of its team. Whether it is business operations or product development, Chainlink's performance is very outstanding.


5. Tail

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