In this rapidly advancing world of decentralized finance and smart contracts, anyone can now build decentralized applications or dApps to cater to real-world needs. DApps are firmly hinged on smart contracts— regular contracts written with lines of codes that self-execute when terms of the contract are met. Building dApps for real-world use cases requires supplying off-chain data to smart contracts on the blockchain, and these data are needed to be accurate and (in many cases) real-time.
For example, building sports-related or finance dApps requires real-time outcomes of sports matches and current asset prices, respectively. This is where oracles come into play.
An oracle is a software program that translates data from the real world to smart contracts and back. Oracles play a crucial role in Defi protocols which hold billions of dollars of user funds. And of course, the current leader in the oracle space is Chainlink.
Chainlink is a decentralized network of oracles (or data service providers) that supply accurate, real-time, off-chain data to smart contracts in the blockchain. Using a series of steps, including oracle selection, data collection, and result verification and aggregation, Chainlink provides the most accurate data needed to run smart contracts. Built on the Ethereum blockchain in 2019, the network is now interoperable, catering to smart contracts on multiple blockchains.
LINK is Chainlink's native token. It derives its value from being a transactional currency on the Chainlink network. Smart contracts owners deposit a fee- in LINK to request off-chain data. Oracle node operators are paid in LINK for supplying data and are also required to stake some LINK in a pool to finance the project.
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LINK is an Ethereum token and can be bought with fiat or exchanged for other cryptocurrencies on YouHodler.
The best way to earn interest on your LINK is by depositing it in your YouHodler savings account.
On YouHodler, you can take a loan in stablecoins by depositing your LINK as collateral.
You can do more than HODL. Trade with YouHodler and potentially stack your LINK bag.