Chainlink

Halal Rating :
Comfortable
Last Price $23.01 Last updated:
Rank 12
1D Change 9.31 %
Market Cap $14.68b
Circulating supply 638,099,970
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Platform
  • DeFi
  • Oracles
  • Smart Contracts
  • Substrate
  • Polkadot
  • Polkadot Ecosystem
  • Avalanche Ecosystem
  • Solana Ecosystem
  • Framework Ventures Portfolio
  • Polygon Ecosystem
  • Fantom Ecosystem
  • Cardano Ecosystem
  • Web3
  • Near Protocol Ecosystem
  • Arbitrum Ecosystem
  • Cardano
  • Injective Ecosystem
  • Optimism Ecosystem

Overview

Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. It acts as a crucial middleware solution that allows blockchain networks to reliably connect with external systems.

Intended Utility

The primary purpose of Chainlink is to serve as a decentralized oracle network, with LINK tokens being used to compensate node operators for retrieving and providing external data to smart contracts. Node operators must stake LINK tokens to participate in the network, creating an economic incentive for reliable data provision.

Actual Utility and Adoption

Chainlink has achieved significant real-world adoption, with over 1,000 projects currently using its oracle services. Major enterprises and protocols including Google Cloud, Swift, and numerous DeFi platforms actively utilize Chainlink's oracle networks. The network secures tens of billions of dollars in smart contract value.

Token Distribution and Governance

The initial token distribution allocated 35% to node operators and the ecosystem, 35% to the company for development, and 30% sold during the ICO. The team's tokens had a structured vesting schedule. Chainlink Labs continues active development with a strong focus on technical innovation rather than token price marketing.

Technology and Revenue Model

The revenue model is based on legitimate service provision - node operators earn LINK tokens for providing accurate data feeds to smart contracts. This represents a clear value exchange rather than interest-based earnings. The technology enables crucial infrastructure for the blockchain ecosystem without facilitating any prohibited activities.

Crypto Impact

To assign a comfort level investing in Chainlink from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Chainlink.

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