iTrustCapital, the #1 Crypto IRA platform that allows investors to access cryptocurrencies, digital assets and precious metals within their retirement accounts has announced that Chainlink (LINK ) is now available on their platform.
What is Chainlink?
Every blockchain network is unique. Not in their ideas or use cases, but in the actual data that flows within each one. Some are focused on money, like Bitcoin, while others, like Ethereum, emphasize decentralized applications. On Ethereum, users interact with those applications via smart contracts - essentially automated if, then statements. However, these interactions are based on information created within the network. For example, an Ethereum-based startup looking for funding is new and was built within the Ethereum network regulations. But what if an existing group wants to utilize the blockchain? How do they move existing, off-chain databases, price information, and other data over?
This is where Chainlink comes into play.
Chainlink utilizes a unique technology called oracles to pull information from the real world onto the blockchain. This is mostly seen on blockchain-based lending and derivatives platforms to keep up with real-time price points. Exchanges take advantage of the technology and keep up to date with real-world price points in correlation with crypto prices. However, how can we be sure the data transferred onto a blockchain is legitimate? That a bad
actor isn’t in place to manipulate it? Thanks to decentralization. Essentially, data being sent through Chainlink is managed by a provider - parties that bring and validate data onto the Chainlink network. Providers are paid for their work in the LINK token, incentivizing legitimate effort. Providers must also stake some of their own LINK before working, which will be lost if their work is done poorly.
How Does Chainlink Impact Blockchain Technology?
Thanks to its Oracles, Chainlink helps prep the rest of the world’s adoption of blockchain technology. As more companies around the world adopt blockchain, Chainlink will be there to assist. More specifically, the group is looking to partner with various banks and banking applications like SWIFT and PayPal in the near future. The idea is for banks to move their traditional infrastructures, systems, etc., to the blockchain, utilizing Chainlinks oracles as an intermediary. Some big tech companies are already taking advantage of this. Google is using Chainlink to move information from cloud-based applications to the Ethereum blockchain, for instance.
What is the LINK token, and why is it valuable?
As mentioned, providers must stake LINK to start working and are paid in the token as well. This information is provided to purchasers - parties that need to acquire such data. If a provider does good work, they are rated by a purchaser. Providers with the highest reputation are rewarded with more work and earn more LINK overall. By creating this incentive to provide legitimate information, the LINK token has inherent value. The more work to be done, the higher the value of LINK. As the network’s use case rises and more platforms look to migrate to blockchain technology, Chainlink will ideally raise in value over time.
Chainlink (LINK) in your IRA / 401k
If you want to learn more about Chainlink and/or invest within your IRA / 401k retirement accounts, head to iTrustCapital.
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