ChainLink is attempting to bridge the functionality gap in smart contracts. Say you wanted to sell the currency you were holding if there was a news piece on something like Ethereum now in third place. The only way you would know if this happened is constantly watching news and coin market cap.
News Feed to Keywords
With ChainLink you could connect a news feed to your smart contract with some keywords that could cause you to sell Ethereum and buy ripple. (Ethereum now in third place,Ripple passes Ethereum). Some kind of data set like that. There would be many other uses for this kind of connection to news feed.
Smart Contracts
Smart contracts are digital contracts that provides the mechanism to be executed according to pre-determined conditions/parameters. Smart contracts need data to determine if, or how, they should be executed. Though the smart contracts are secure, they depend on the security of data input as well. Smart contract can’t reach the real-world data and ensure it is provided correctly.
ChainLink’s core functional objective is to bridge two environments: on-chain and offchain. ChainLink will initially be built on Ethereum, but the team intends for it to support all leading smart contract networks for both off-chain and cross-chain interactions. In both its on and off-chain versions, ChainLink has been designed with modularity in mind. Every piece of the ChainLink system is upgradable, so that different components can be replaced as better techniques and competing implementations arise.
Off-chain, ChainLink initially consists of a network of oracle nodes connected to the Ethereum network, and we intend for it to support all leading smart contract networks. These nodes independently harvest responses to off-chain requests.
The ChainLink nodes are powered by the standard open source core implementation which handles standard blockchain interactions, scheduling, and connecting with common external resources. Node operators may choose to add software 6 extensions, known as external adapters, that allow the operators to offer additional specialized off-chain services. ChainLink nodes have already been deployed alongside both public blockchains and private networks in enterprise settings; enabling the nodes to run in a decentralized manner is the motivation for the ChainLink network.
Oracle security is crucial to Chainlink because incorrect or tampered data may lead to smart contracts paying to the wrong party. There may also be insurance fraud, and if GPS data given to a trade finance contract can be modified after it leaves the data provider, payment can be released for goods that haven’t arrived.
Behavior of a secure oracle ORACLE is defined by, accepting request, obtaining data and finally returning the data.
Additionally, to protect the confidentiality of a request upon decryption, ORACLE never uses or reveals the data it contains, except to the source of where it came from.
To achieve the property of integrity, also referred to as the authenticity property, it should simply be asked that ORACLE perform 3 functions.
Steps required to achieve property of integrity:
As an oracle service, ChainLink nodes return replies to data requests or queries made by or on behalf of a user contract, which we refer to as requesting contracts and denote by USER-SC.
ChainLink’s on-chain interface to requesting contracts is itself an on-chain contract called CHAINLINK-SC. As already mentioned before, ChainLink contracts are designed in a modular manner, allowing for them to be configured or replaced by users as needed. The on-chain work flow has three steps:
Oracle Selection
An oracle services purchaser specifies requirements that make up a service level agreement (SLA) proposal. The SLA proposal includes details such as query parameters and the number of oracles needed by the purchaser. Additionally, the purchaser specifies the reputation and aggregating contracts to be used for the rest of the agreement.
Data Reporting
Data Reporting Once the new oracle record has been created, the off-chain oracles execute the agreement and report back on-chain
Result Aggregation
Once the oracles have revealed their results to the oracle contract, their results will be fed to the aggregating contract. The aggregating contract tallies the collective results and calculates a weighted answer. The validity of each oracle response is then reported to the reputation contract. Finally, the weighted answer is returned to the specified contract function in USER-SC.
Chainlink has gotten quite a lot of exposure and upward traction as of late, which managed to land it a listing on Coinbase.
Coinbase is a convenient and cheap way to buy Ethereum (if avaliable in your country). Coinbase will charge a fee of between 1.49% and 3.99% depending on your payment method (credit cards have a higher fee than wire transfers).
The buying process itself is very simple. Just create and account and add your payment method, then go to the Buy/Sell section and simply input the amount you wish to buy.
As always, we recommend Exodus wherever available. The wallet supports numerous other Cryptocurrencies along with Chainlink (LINK) and is pretty straightforward and easy to use.
Simply download the app from the official site (exodus.io) and get straight into creating your wallet.
Exodus stores your Private Keys on the machine you choose and not on any server, providing you with a relative peace of mind when it comes to the security of your coins.
Our number one choice when it comes to online wallets for Chainlink is of course MyEtherWallet (MEW).
MyEtherWallet offers a brilliant combination of speed, trustworthiness and simplicity, making it the most popular online wallet for ether and any ERC20-based tokens.
MyEtherWallet Installation
Simply visit myetherwallet and set up your wallet with a method of your choosing, just make sure to store your private key somewhere safe. It's wise to have it written down on paper in case your PC/notebook malfunctions.
The only downside to using an online wallet like MEW is that there are literally hundreds of phishing scams out there to get your ETH.
It is highly advised to double check the address every time and make sure to watch out for any malicious activity on your browser or PC.
As far as hardware wallets go, Trezor and Nano Ledger S are two choices for ChainLink,
Hardware wallets are also called "cold storage", they are dedicated wallet devices, often in the form of a USB stick. Just plug it in to an internet-enabled device to transfer assets. Even though transactions are made online, the keys are stored offline. Thus, hardware wallets are one of the most secure methods of storing Cryptocurrencies, in addition to being portable.
Ledger
As for using the Nano Ledger S, the first step towards setting up your device is unboxing and checking if you have received all the accessories with the device. Once you have unboxed your device, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device.
Trezor
As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the bridge which allows the Trezor to join with the computer.
The first step is to connect the Trezor to device’s USB slot with the cable given in the box.
After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer.
Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden.
After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”.
In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet.
