The word around the crypto community is that Chainlink and the Pepe meme is a match made in heaven. And although the discussion goes full-on esoteric, the Chainlink is one of the best performing crypto projects that is associated with big names of the mainstream business world.
Whether it has some grand-scale internet hoodoo behind or not, let’s see what’s going on with Chainlink.
Table of Contents
What is Chainlink?
First of all, Chainlink is a decentralized oracle network that provides off-chain data to on-chain resources. It is a major blockchain interoperability project that acts as a middleware for different environments by making a connection between them.
Chainlink doesn’t just offer interoperability by connecting blockchains, it is also meant to connect decentralized environments with centralized environments.
Many of the decentralized apps work with data that is external to them. And in many cases, the data comes from centralized sources that can be easily manipulated or are just incorrect.
Chainlink is looking to solve this issue through oracle nodes that are meant to form a trustless and robust network. In this network, the off-chain data can be easily accessed and verified. The node operators have their historical and real-time performance immutably stored on the network for all to see.
The complex use cases that Chainlink can support are numerous, with some of them being in these fields:
- Market data;
- Retail payments;
- Events data.
How does Chainlink work?
The Chainlink smart contracts offer projects that need to access off-chain data a possibility to get data from external resources and correlate them with APIs and data pools through the use of oracles.
The Off-chain architecture
The off-chain architecture plan started from Chainlink’s beginning as a project that offered oracles services to the Ethereum Network.
The Chainlink Core powered a network of oracle nodes that handled blockchain interactions with external resources, from any industry, in real-time. And for the most of it, Chainlink off-chain architecture kept the same principles.
The On-chain architecture
The on-chain architecture is made of a network formed by independent nodes that collect data from oracles and reply to data requests coming from users’ request contracts.
Mentioning contracts, there are three main types of contracts built for the On-Chain Architecture:
- Reputation contract;
- Order-matching contract;
- Aggregating contract.
The reputation contract is meant for verifying the reputation of the oracle service provider.
Next, the Order-matching contract handles the requests from the oracle providers based on the Service Level Agreement (SLA) parameters.
And the Aggregating contract has the function to gather responses from the Oracles providers and conclude the final results for the Chainlink query.
The Chainlink security
The Chainlink Security is made of 4 key security services:
- The validation system;
- The reputation system;
- The certification service;
- The contract-upgrade service.
The first three systems are established with the goal of guiding users, while the last is optional.
The validation system monitors nodes on the Chainlink network and ratesthem based on their availability and correctness.
In Chainlink’s validation system, availability refers to the node’s ability to respond to messages specifically for the purpose of uptime statistics. It will be measured as a rate. As for Correctness, it will be measured by comparing a node’s response to other nodes’ responses on a given assignment. Therefore, any deviation from the average response will impact a node’s correctness negatively.
As for the reputation system, its main purpose is to provide an incentive for nodes to produce honest data promptly. It will contain on-chain history defining the majority of factors on which a node is rated. The reputation system keeps track of a node’s total number of assigned, completed, and accepted requests, the average time to respond, and the number of penalty payments.
The certification system is used to prevent nodes from cheating. It prevents freeloading, sybil, mirroring, and other types of attacks. The certification system is meant to find and prevent these attacks by endorsing high-quality oracle providers.
And finally, the optional contract upgrade system is a service that users of the Chainlink network can choose to utilize if they wish to have security updates applied to their smart contracts.
The link token in the Chainlink environment
Link is the native currency of Chainlink and is also one of the best performing altcoins. It is an ERC20 token with additional ERC 223 functionality, and is mainly used to compensate for the off-chain nodes.
The value and demand of the token are determined by the number of operators available that provide off-chain services to Chainlink. The more the link token is used in the Chainlink environment, the more valuable it should become.
Moreso, the Link token started 2020 at around $1.80 in January, and reached an all-time high of $8.80 in July, proving that exponential growth of almost 500% is still possible in today’s crypto market.
Big names associated with Chainlink
Getting associated with big players from the business world, Chainlink received some votes of trust that helped develop its project further and influenced the growth of the Link token.
In June 2019, Google Cloud integrated Chainlink oracles in their analytics data Warehouse. Through the Chainlink-Google Cloud collaboration, the companies aimed to make it easier for developers to build technologies by letting them access cloud data, among other things, on public blockchains using oracles.
In the same month, software giant Oracle announced the partnership with Chainlink with the goal of helping startups using Chainlink’s oracles monetize their APIs on the Oracle Blockchain Platform.
Also, since July 2020, Deutsche Telekom’s T-Systems became a Chainlink node operator.
The Meme Magic
But what’s going on with meme magic and what does it have to do with the Link token?
Well, the word around the campfire is that meme magic is a thing, and Chainlink is to reach $1,000 per Link because of it.
Supposedly, the Pepe meme is based on an ancient Egyptian god named Kek. With this in mind, there are some online communities that treat Pepe as a god and employ a technique which involves charging a symbol that acts as a proxy for a clandestine plan.
At the end of the day, we are in no position to say if this meme magic is real or not. However, we do have to take into consideration what we really know.
Text plus image works a hell of a lot better than text alone. You are 6 times more likely to have a message imprinted on your mind when the message is associated with a relevant image rather than text alone.
This is the reason why the power of memes is immense.
And Chainlink is not the first cryptocurrency to exploit the power of Memes. Perhaps the most known cryptocurrency for using a meme is Dogecoin.
Dogecoin used the doge meme and became famous by creating their brand around a photo of a Shiba Inu that looks like a canine Mona Lisa.