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Wednesday, 20 Oct 2021
Crypto Notes
Crypto Notes ₿ by Rohas Nagpal
By Rohas Nagpal

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All about Chainlink (LINK)

Over the last few weeks, we discussed Dogecoin (DOGE), Cardano (ADA), Binance Coin (BNB), Solana (SOL), Bitcoin (BTC), Ether (ETH), Filecoin (FIL), Polkadot (DOT), and Polygon (MATIC). This week we take on Chainlink (LINK).

     

Let's start with some interesting crypto news.

Crypto prices are bouncing back after several weeks. Bitcoin has breached $62,000 and Ether is inching towards $4,000. The overall crypto market capitalization has touched the $2.5 trillion milestone.

After Amitabh Bachchan, Salman Khan is launching a Non-Fungible Token (NFT) series.

Over 2 lakh accounts have been blocked by crypto exchanges in India between April to September 2021. Reasons for the blocking are malicious activities and requests from law enforcement agencies in India, the US, UK, France, Austria, Switzerland, and Germany.

1. What is Chainlink (LINK)?

Name: Chainlink

Symbol: LINK

Overview:

How can a smart contract get data from the outside world?

That's the problem that Oracles solve. They act as middleware between smart contracts and external sources of data.

Chainlink is a decentralized network of independent oracle node operators. It provides:

price feeds of financial market data,

verifiable randomness that is needed for on-chain gaming,

proof of reserve for asset-backed cryptos such as stablecoins.

Chainlink is NOT a blockchain.

Each Chainlink oracle network comprises multiple independent oracle nodes. These nodes fetch data from multiple independent data providers. This data is then aggregated into a single data point and delivered "on-chain" for consumption by smart contracts.

LINK is the crypto token that is used for paying Chainlink node operators for providing oracle services.

Consensus mechanism:

LINK is an ERC-20 token.

2. Metrics

As of 19 October, its core metrics are:

Price metrics

Current Price: $ 25.9
All-time high (May 10, 2021) $ 52.88
All-time low (Sep 23, 2017) $ 0.1263

Supply metrics:

Circulating supply: 459 million LINK
Total supply: 1 billion LINK
Maximum supply: 1 billion LINK

Note:

Circulating Supply is the number of coins / tokens in public hands.

Total Supply is the number of coins / tokens created minus the number burned.

Maximum Supply is the maximum amount of this crypto that can ever exist

Figures have been rounded off for convenience

Marketcap & Volume metrics:

Market Cap: $ 11.9 billion
Fully Diluted Market Cap: $ 25.9 billion
Volume (24h): $ 755 million
Volume / market cap ratio: 0.06331

Note:

Market cap = Current Price x Circulating Supply

Fully Diluted Market Cap is the market cap if the maximum supply was in circulation

Volume (24h) is the fiat value of this crypto traded over the last 24 hours

Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos

Volume / market cap ratio = 24h Volume / Marketcap

Total Value Locked = Total assets value currently staked or locked in the protocol.

Figures have been rounded off for convenience

Risk metrics:

  Volatility Sharpe ratio
Last 30 days 1.08 - 0.6
Last 90 days 1.16 2.45
Last 1 year 1.4 1.24
Last 3 years 1.39 1.63

Note:

Volatility measures the annualized standard deviation of daily returns

Sharpe Ratio measures the excess return for a given level of risk

3. Wallets

The popular wallets include Trust Wallet and Metamask.

Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet.

     

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Rohas Nagpal is an author, an amateur boxer, a blockchain architect, a Tintinologist and a retired hacker.

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