The Problem
Do you know what the problem with Bitcoin and Ethereum is? Well, both are exceedingly “slow” at completing transactions compared to other cryptocurrencies. For the Ethereum blockchain, it is a cryptocurrency as well as a developer platform. As the Ethereum blockchain expands, transaction or “gas” fees also rise due to the ‘work’ needed to process information on the blockchain. For a long time, this Proof of Work or “PoW” settlement structure has hindered Ethereum’s speed and created a bottleneck that prevented true scalability.
The Solution
What was needed was some way to process data off-chain, then have smart “digital” contracts form an aggregate consensus as to the value of what it was aggregating. A smart contract is like a digital program that can run without human intervention. Then, the smart contract would send this consensus data on-chain to complete the transaction.
Chainlink (LINK)
Ironically, this concept is not new. One cryptocurrency called Chainlink is already considered the standard in what is called decentralized Oracle networks. Decentralized means that there is no server or no computer holding the information, it is all “online”. And an oracle takes data from multiple sources to calculate what the true value of the aggregate…
