[Polkadot ecosystem, the Ethereum’s Contender] - Crypto Academy / S4W7 - Homework Post for @allbert
Hello everyone. I welcome you all in 7th week of 4rth season. This week, i have studied a lot. The professor @allbert have delivered very informative lecture. This is my homework post.
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Question 1-Explain in your own words why you chose it and why you think it is relevant to the world.
The polkadot is an ecosystem which have wide popularity all across the world. This effective and useful ecosystem was introduced by the co founder of the Ethereum. This ecosystem allow multiple projects to build on it. The polkadot solve the problem of interconnectivity between the different blockchains. It provide a bridge between multiple blockchains for interoperability. The developers can build their blockchains on the polkadot. The ChainLink is one among them. For this task, i have selected the ChainLink.
ChainLink
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Steve Ellis and Sergey Nazarov introduced the Chainlink protocol in 2017 which is most favorite protocol of mine because of the aim and objective behind creation of this platform. There were some interaction gap between legacy technology and blockchain technology. To fulfill this gap and to provide the interaction between the legacy and blockchain technology, the chainlink was introduced. So we can say that the ChainLink provide a bridge between old technology and new technology.
Steve Ellis and Sergey Nazarov introduced the Chainlink protocol in 2017 which is most favorite protocol of mine because of the aim and objective behind creation of this platform. There were some interaction gap between legacy technology and blockchain technology. To fulfill this gap and to provide the interaction between the legacy and blockchain technology, the chainlink was introduced. So we can say that the ChainLink provide a bridge between old technology and new technology.
The blockchain technology is highly used technology since time of its creation(2008), but still there were some problems in blockchian technology such as providing the off-chian data. The Chainlink platform was introduced to solve all such problems. This blockchain connect the smart contracts with real life applications.
The Ethereum is a second generation blockchcain which have facility of the smart contracts. The smart contracts provide multiple facilities to the users. The transactions are take place automatically in more efficient way on the Ethereum blockchain because of the smart contracts but there is a problem. The smart contracts were designed for the first time on the ethereum blockchain.
When it come to extract the off-chain data, the problem raised. To overcome this issue, the Chainlink was introduced. The chainlink use to get the data from the outer world whenever it required by the smart contracts. SO it connect the two worlds with each other; blockchain world and real world.
Through the decentralized oracle network, the chainlink protocol provide a bridge between blockchains and real world data. The blockchains are linked in a secure and reliable way with off-chain data. It link the real world application with blockchain smart contracts.
This protocol was used for the first time on the ethereum blockchain where the smart contracts were introduced. The smart contracts can perform the transactions automatically, allow the users to perform P-2-P transactions without involvement of the third party and can do many other magical functionalities but cannot get the data directly outside from the blockchain. Because of having no middle man, the blockchain cannot get data from the outer world.
To read the data outside from the blockchain, the Chainlink oracle network provide a bridge between the real world application with blockchain smart contracts. In this way, they make the smart contracts more powerful and enhance their functionalities by connecting them with out world.
Link is the native coin of the Chainlink blockchain. In 2017, 1000,000,000 links were announced as the total link supply during the ICO for the link token, Currently, there are 461,009,553.92 LINK which are in circulation with market price 31.25$. At the time of launching, during ICO, the price of one LINK was 0.11 but then there were some higher high moves in the price movement and now this coin is ranked as 14 in the crypto market. The 2021 was the year when the LINK reached to its all time high value which was 52.88$.
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Token Distribution
There are total 1,000,000,000 LINK token among which the 35% are for the node operators. From remaining 65%, the 35 percent were be distributed in public sale. Then the 30% left which are for the company to continue the development of the chainlink network.
Question 2- Description of the project and its platform. (Screenshots needed)
The chainlink oracle network was introduced in 2017 by the Steve Ellis and Sergey Nazarov. They realized the problem which were there in Ethereum blockchain. The smart contracts were designed on the Etheruem blockchain to make the system more advance and reliable. But the smart contracts are not able to get the data outside of the blockchain. Here the chainlink oracle network perform its functionality. This network connect the smart contracts with real life applications.
This provide a bridge to fulfil the gap between blockchain technology and the real world data and applications. Whenever the smart contracts require some information, the request is taken by the Chainlink protocol. The chainlink protocol then collect the data outside of the blockchain and after getting it, the network give it to the smart contracts. Multiple protocols are there which can act as bridge between the blockchain and real world. But the Chainlink have some characteristics which make it more reliable and unique from others.
The Chainlink oracle protocol is completely decentralized and a reliable protocol. The other protocols which connect the real world with blockchain technology are centralized which are givern and control by a central party. The security is not high in such centralized system.
This digital infrastructure provide a bridge between the off-chain data and smart contracts on the blockchain technology. The chainklink have multiple nodes which are connected with each other. Each node work on the ecosystem to its own reputation. This protocol is totally decentralized where when a node provide the outer data to blockchain in a successful way, then more bigger contracts are given to such nodes so that they can earn more LINK tokens.
This protocol link the blockchain technology with out world. The multiple finencial system such as bank and blockchain are connected by the Chainlink protocol. The security of the system get high because there is not a single central authority . Here the nodes(which are interconnected with each other) work to connect the blockchain with real world data. So the system do not depend on any single node.
Validating the Data by Nodes
The nodes on the network collect the data requests from the smart contracts. Then all the requests are translated from language which is understandable only by the blockchain into real world programming language. The chainlink core software are used for translating the requests in real life programming language. Then these translated requests are transferred to the API which are responsible for collecting the data from outer world.
When the requested data is collected, then again the Chainlink core software are used to translated this real life programming language back to the programming language which is understandable by the blockchain. The collected data is sent to the Chainlink Aggregated contracts which validate the data. Then the average data is sent to the blockchain for use.
LINK
The LINK is the native token of the Chainlink protcol which has been developed with the ERC-20 standard. In 2017, 1000,000,000 links were announced as the total link supply during the ICO for the link token, Currently, there are 461,009,553.92 LINK which are in circulation with market price 31.26$. At the time of launching, during ICO, the price of one LINK was 0.11 but then there were some higher high moves in the price movement and now this coin is ranked as 14 in the crypto market. The 2021 was the year when the LINK reached to its all time high value which was 52.88$.
Question 3- Functionalities and real-life applications. (Screenshots needed)
Functionalities
- Connect Smart Contracts
The smart contracts were first designed on the ethereum blockchain which allow the users to perform the P-2-P transactions without involvement of the middle man. The smart contracts have multiple advanced functionalities which make the blockchain more reliable and efficient. But the smart contracts cannot read the off-chain data. To connect the smart contracts with real life applications, we use the chainlink protocol. The chainlink protocol provide a bridge to connect the two worlds, blockchain world with real world. It collect the data required by the smart contracts from the real world. The collected data is given to the smart contracts.
Through the decentralized oracle network, the chainlink protocol provide a bridge between blockchains and real world data. The blockchains are linked in a secure and reliable way with off-chain data. It link the real world application with blockchain smart contracts.
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The above is the use case of the chainlink protocol. The Pooltogethor is a project which use VRF of the Chainlink protocol to improve the randomness generation
- Reliable
Multiple protocols are there which can act as bridge between the blockchain and real world. But the Chainlink have some characteristics which make it more reliable and unique from others. The Chainlink oracle protocol is completely decentralized and a reliable protocol. The other protocols which connect the real world with blockchain technology are centralized which are givern and control by a central party. The security is not high in such centralized system.
The Chainlink is completely decentralized hence is more reliable way to connect the blockchain world with real world data.
- Chainlink Nodes
The nodes on the chainlink adapter are interconnected with each other and provide a secure and reliable way to connect the blockchain with outer world data. Chainlink nodes have two types. The first one is Core. These are the nodes who are responsible to read the SLA agreements. All the new assignment are sent to the Chainlink Adapter. The Adapter is another form of the Chainlink nodes. These are the nodes which provide the bridge between the network nodes and off-chain data.
- Automation Solution
The chainlink is highly reliable and secure way to connect the blockchain with the real life data. This protocol can be used as Automation solution in an effective and efficient way. The approach of using the chainlink protocol as automation solution is highly secure and decentralized.
- Hybrid Smart contracts
The chainlink protocol is commonly use to build the hybrid smart contracts. This decentralized protocol provide an infastructure to the the developers to build the hybrid smart contracts in successful and reliable way.
- Security of Smart contracts
Providing the security is high concern of the chainlink protocol. They provide high security to the the smart contracts throught the chainlink VRF. The Chainlink VRF is use to generate the verifiable random number to ensure the security of the Smart contracts.
Functionalities of Chainlink
- Smart contracts
This digital infrastructure provide a bridge between the off-chain data and smart contracts on the blockchain technology. Whenever the data is require to the smart contract from the external world, they made request. These requests are collected by the Chainlink nodes. The nodes on the network collect the data requests from the smart contracts. Then all the requests are translated from language which is understandable only by the blockchain into real world programming language.
The chainlink core software are used for translating the requests in real life programming language. Then these translated requests are transferred to the API which are responsible for collecting the data from outer world.
- Decentralized
The chainklink have multiple nodes which are connected with each other. Each node work on the ecosystem to its own reputation. So it does not depend on the single node or central node. Some other protocols also offer bridge to connect the real world with smart contracts but these are centralized and security in centralized system is always disturbed.
- Security
This protocol is totally decentralized where when a node provide the outer data to blockchain in a successful way, then more bigger contracts are given to such nodes so that they can earn more LINK tokens. But reward is always given to those nodes who provide the secure and reliable off-chain data. This mechanism make it sure that the output of this protocol is always accurate and reliable.
- Connect blockchain technology with real world.
The blockchain technology has changed the world magically. But still there are some areas where the blockchain technology cannot be used. The Chainlink connect the blockchain technology with real world. The chainlink core software are used for translating the requests in real life programming language. In this way, the information of the blockchain flow in real life applications.
Question 4- Future development and associated projects. (Screenshots needed)
Link and Sol
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This event will take place in december, 2021. This project has been schedule to launch the chainlink protocol on its platform. When the chainlink price feed have gone live on the Solana network, the developers will be able to develop the more reliable and efficient protocols to extract the off-chain information
Dec Explorer
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Dec Explorer integration is expected to start before 2022. It is expected to integrate the chainlink protcol with this explorer project. Because of this integration, it would be possible to visible the transaction of chainlink and Tomochain on this network.
Chainlink Fall 2021 Hackathon
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Chainlink Fall 2021 HackathonChainlink Fall 2021 Hackathon development project is expected to start in October 2021. This future development project of chainlink protocol will enable the developers to build the hybrid smart contracts.
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.
The LINK is the native token of Chainlink network. In 2017, 1000,000,000 links were announced as the total link supply during the ICO for the link token, Currently, there are 461,009,553.92 LINK which are in circulation with market price 31.25$. At the time of launching, during ICO, the price of one LINK was 0.11 but then there were some higher high moves in the price movement and now this coin is ranked as 14 in the crypto market. The 2021 was the year when the LINK reached to its all time high value which was 52.88$.
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At the time of writing this assignment, the market cap of LINK is 14,352,966,124.64$ and circulating supply is . At the time of writing this assignment, there is 24-hour low is 28.17$ and 24-hour high is 31.25$. The circulating supply of LINK is 461,009,553.92$ LINK coins and a max. supply of 1,000,000,000 LINK coins.
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The above is the trading view of the Link coin. We can see that the market is rising upward. The green candles are showing that the buying pressure is high because of which the demand increase and supply decrease. This result in upward movement of the price.
-Investment
Now i will make an entry through the binance account.
- First of all i open my binnace account.
- I have checked my portfolio. Then click on trade in the bottom of page.
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- Choose pair of your own choice. As i want to invest in Link, so i will choose the LINK/USDT
- Then Enter the amount for which you want to buy LINK. I have enter the 15 as i want to make investment of 15 USDT. Then click on the BUY button.
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My order has been executed successfully. Below is my updated portfolio.
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- The below is the order detail.
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Conclusion
The Chainlink oracle network provide a bridge between the real world application with blockchain smart contracts. It is use to read the data outside from the blockchain. In this way, they make the smart contracts more powerful and enhance their functionalities by connecting them with out world. The Chainlink oracle protocol is completely decentralized and a reliable protocol. The other protocols which connect the real world with blockchain technology are centralized which are govern and control by a central party. The security is not high in such centralized system.
Multiple chainlink projects are under development and in future, they will launch. The features of this decentralized protocol make it unique and reliable. Thanks to professor @allbert for delivering this informative lecture.
#club5050 😀