Polkadot ecosystem, the Ethereum’s Contender. | Steemit Crypto Academy Season 4 Week 7 | Homework post for @allbert
Introduciton
Hello to everyone,
In this post, there are the assignments of professor @allbert this week. Our topic is about projects built on the Palkadot Ecosystem. The project I chose is the ChainLink project. In this sharing, you will be able to access a lot of information about the ChainLink project. Without further ado, I would like to begin my sharing.
Quesiton 1
Explain in your own words why you chose it and why do you think it is relevant to the world?
ChainLink
The main reason I chose this project is that it acts as a bridge between the real world and the blockchain world, we can also define it as a bridge between old technology and new technology. Blockchain technology was having trouble providing off-chain information, and this project was developed to eliminate this problem.
With the development of Ethereum, smart contracts emerged, adding a new dimension to blockchain technology. Smart contracts are designed to allow transactions to occur automatically by providing certain parameters. However, this poses a problem when these provided parameters occur off-chain.
ChainLink was developed to provide a solution to this situation. This issue was also in focus when the ChainLink project was conceived by Steve Ellis and Sergey Nazarov. That's why ChainLink was founded in 2017 and its aims are; connecting the real world and the blockchain world seamlessly and reliably. That's why ChainLink was developed as "Oracle", which acts as a bridge between real-world data and blockchain smart contracts.
Quesiton 2
Description of the project and its platform. (Screenshots needed)
The Chainlink project, as we mentioned earlier, was designed to create a bridge between the real world and the blockchain world.
ChainLink is a blockchain project established by the partnership of Sergey Nazarov and Steve Ellis. Project work started in 2015 and the LINK token was released in 2017, demonstrating the ERC20 token features.
On the basis of Chainlink, it acts as a bridge between different payment systems and banks and blockchain. Many Oracle projects can perform this bridge task. However, there are many points that distinguish ChainLink from others. In general, the organizations or projects that serve as this bridge are centralized or suitable for centralization. The reliability of a centralized system is questioned, and it is actually against the decentralized structure, which is one of the foundations of blockchain technology. For this reason, the ChainLink project is a project presented to us by designing a decentralized and reliable system.
On the basis of Chainlink; It is a decentralized node network that provides data and information with smart contracts on the blockchain network through oracles. Thanks to the structure created by these nodes, it has eliminated the security problems that may arise when a single central resource is used.
LINK
The local currency of the Chainlink network is the Link Token, and transactions in the Chainlink network are carried out through this token. As we mentioned before, the link token is a token developed in ERC20 standards and can be stored in all ERC20 compatible wallets.
The initial coin offering (ICO) of the link token was held in September 2017 and raised $32 million with a total offering of 1 million links. If we look at the current data from the Coinmarketcap platform:
- Price: 29.40 USD
- MarketCap: 13,507,402,949 USD
- Volume 24H: 1,638,617,010 USD
- Circulating Supply: 459,509,553.92 LINK
- Max Supply: 1,000,000,000
- Total Supply: 1,000,000,000
Quesiton 3
. Functionalities and real-life applications. (Screenshots needed)
Functionality
Chainlink enables off-chain and on-chain data to interact with the chain reliably and accurately through smart contracts. In addition, it enables chain interaction with many payment methods.
We have already mentioned what smart contracts mean. When a data is required for smart contracts in Chainlink, the system starts processing when the smart contract requests a data. As a result of this request, the Chainlink protocol creates a “Chainlink service level agreement (SLA)” to receive data from the blockchain. This created SLA agreement creates three sub-contracts; Chainlink Reputation Agreement, Chainlink Order matching agreement, Chainlink Aggregation Agreement.
- Chainlik reputation agreement; It checks the historical records of Oracle providers to verify authenticity and performance history, and as a result removes disreputable or untrusted nodes.
- Chainlink Order matching contract; It transmits what the demand in the requested contract is to the nodes and collects their offers in line with the demand. It then selects the node that meets the correct parameters to fulfill the request.
- Chainlink Aggregation Agreement; all data is retrieved from the selected node and validates or reconciles these data to arrive at an accurate conclusion.
The next step is for Chainlink nodes to translate the on-chain language into an off-chain language (Daily human language) using the Chainlink Core software. Then, real-life data is collected through another application.
Once real-life data is collected, this data is translated into an on-chain language and then sent to the Chainlink Collection Contract.
The Chainlink Collective Agreement will then validate the data, this can be done through one or more sources. When verifying with multiple sources; All data from different sources are collected, then the average of the collected information is taken to obtain the most accurate and reliable data. Under certain circumstances, all collected information may not be averaged, but can be described as such for the sake of general description and simplicity.
The next step is for Chainlink nodes to translate the on-chain language into an off-chain language (Daily human language) using the Chainlink Core software. Then, real-life data is collected through another application.
Once real-life data is collected, this data is translated into an on-chain language and then sent to the Chainlink Collection Contract.
The Chainlink Collective Agreement will then validate the data, this can be done through one or more sources. When verifying with multiple sources; All data from different sources are collected, then the average of the collected information is taken to obtain the most accurate and reliable data. Under certain circumstances, all collected information may not be averaged, but can be described as such for the sake of general description and simplicity.
Uses
Chainlink is a project that can be used in many areas. Many conveniences can be provided by integrating smart contracts into older generation banking transactions. It can be used in price feeds.
Chainlink USD data Feeds: This type of feed is the price feed of cryptocurrencies from popular exchanges or platforms that list financial assets. Chainlink will update the price information to instantly reflect how the prices of these assets change in the light of real-world data.
Chainlink VRF: is a random number generator that generates verifiable random numbers for the security of smart contracts in NFTs and many games.
In addition to all these, there are many on-chain and off-chain projects that Chainlink is linked to; AAVE, Synthetix, Arbol, Aavegotchi, PoolTogether, Ether Cards, etc.
Quesiton 4
Future development and associated projects. (Screenshots needed)
This development is a project that is expected to take place before 2022. As part of this project, Solana is expected to launch Chainlink on its own Beta network. This will happen once the Chainlink Price feeds go live on the Solana network.
Once integrated, Decentr and TomaChain and Chainlik transactions will be visible in the explorer.
Quesiton 5
Make a technical analysis of the token of the selected platform, then through your validated exchange account make the purchase of the token (15 USD as a minimum). Screenshots and an explanation of the procedure are required.
In this section, I will perform the technical analysis from the Tradingview platform and my transactions from my account approved by the FTX exchange.
First, we open the chart of our Chainlink/USD pair on the Tradingview platform. Since we will make a long-term investment later, I open the weekly chart. I will use Bollinger Bands and RSI indicator during my chart analysis.
When we opened our weekly chart, I first looked at the price movements. Later, I saw that the price showed a downtrend. I then confirmed this downtrend by drawing a Trendline connecting the highs of the price.
Then, when I looked at our BB indicator, I saw that the price went above the middle band and moved closer to the upper band. This gives us the news that an uptrend has begun. Later, when I wanted to determine the instantaneous situation of the price with the help of the RSI indicator, I saw that the RSI value gradually passed 50 and I thought that this rise would continue, thinking that we were on the weekly chart.
Then I saw the price start to break the downtrend line I had drawn and it was a buy signal for me. We have done an in-depth review of the project in the sections above and we all understand that the project has solid foundations. Therefore, it is a project that should be invested in.
We decide to invest as a result of our fundamental and technical analysis.
- First, we go to the FTX platform and log in to our account.
- Then we click on the “Markets” section and select the Spot option. Then we find the LINK/USD pair and click on it.
- After that, we fill in the price and quantity fields on the screen that opens, and click the "Buy" button, and our transaction takes place when we reach the price we want.
Conclusion
In this post, we tried to touch on many issues about the Chainlink project. In line with our research and technical analysis, we purchased our Link tokens. This course was a good course and one that required a lot of research. I can say that I enjoyed doing it. So thank you professor @allbert and everyone who read my post.
CC: @allbert
Hello @adamsmoke Thank you for participating in Steemit Crypto Academy season 4 week 7.