Blockchain, despite all its advantages, has limitations. The main benefits of blockchain are decentralization and security. However, these blockchain networks are isolated from the internet. Closed systems are extraordinarily secure, yet they are limited in functionality. While this helps to maintain the integrity and security of the technology, it restricts data input. For this reason, closed decentralized systems require third-party connections to the outside world if they require external data. For a closed system's integrity to remain intact, more than one data source is required. Otherwise, centralized sources could alter data weakening the data integrity of the blockchain. Chainlink solves this problem. What is Chainlink? Chainlink refers to a Decentralized Oracle Network (DON) that helps link blockchain platforms with off-chain data resources. This network enhances the capabilities of smart contracts by allowing access to off-chain data while keeping blockchain technology secure. While blockchain does an exceptional job of providing a decentralized, secure ledger for online transactions, it could be more effective in accepting input from external data sources. Some external forces that impact markets include credit cards, fiat currencies, sports scores, weather, and more. The Chainlink DON provides real-world data to smart contracts, which helps blockchains accept data from different inputs. One of the downsides of Bitcoin, the first cryptocurrency, is that it only responds to a limited number of inputs. However, newer blockchains like Ethereum can run complex computer programs and respond to multiple data sources. History Chainlink was created in 2014 by Santhosh Palaveshwaran and Sergey Nazarov; however, it was in 2017 that it came to fruition. In February 2017, the creators published a whitepaper about the Chainlink Decentralized Oracle Network. The network officially launched in the same year, with the initial plan to create a blockchain that linked smart contracts and other blockchains. Today, the network works with many other tools and continues to grow. Chainlink is beneficial to blockchain technology in many ways. Tokens, also known as LINK, make the DON work seamlessly. Users who supply the correct data while using Chainlink to access APIs receive LINK tokens. LINK token rewards incentivize providing valid and trusted data. Why is Chainlink a vital technology? There are many benefits of Chainlink. The DON has a wide variety of use cases in different global industries, making it a fantastic technology for businesses looking to improve their functionality and use of blockchain without integrating a new chain. Companies that can benefit from this network include stock exchanges, financial institutions, and many others. Companies can effortlessly interact with various blockchains using Chainlinks that use smart contracts as a service (scaas). In simple terms, Chainlink technology allows companies to develop chainlinks that work for them. In addition, Chainlink works well with other blockchains like Ethereum and IOTA. Chainlink Use Cases Chainlink has several financial use cases: Traditional cryptocurrency payments The standard chainlink smart contract links blockchain and other payment systems. It allows users to pay for products and services in Bitcoin or Ether. Escrow services Smart contract escrow services are increasingly becoming popular. These smart chainlink smart contracts only release payment once both parties have fulfilled their end of the contract. Escrow smart contracts are advantageous when facilitating agreements between several parties, which could involve business deals, contracts, and many more. Bank loans This chainlink smart contract type involves interest and collateral. Chainlink loan smart contracts assist by removing the financial intermediary and executing the loan contract until the end of the agreed-upon term. LINK token LINK is a currency token used to pay for services on the Decentralized Oracle Network. Ethereum smart contracts can connect to other applications and payment systems through this network. Node operator's compensation is possible using LINK tokens for recovering valid data for smart contracts. LINK token is an ERC-20 with the added functionality of ERC-223, developed to improve ERC-20. Holders must stake LINK Tokens into the smart contract to provide data to Chainlink oracles. Doing this, activities such as submitting fake data result in a loss of stake. How do chainlinks work? The chainlink network involves two parties: Purchasers Data providers The process of demanding data begins on a blockchain, and the smart contract sends a request for data. This process is known as requesting a contract. The chainlink protocol registers the request and creates a smart contract known as Service Level Agreement (SLA). The SLA will generate three sub-contracts: Reputation contract Aggregating contract Order-matching contract When a user creates an SLA contract specifying data needs, Chainlink uses the contract to match the user to the right oracles. The oracle will then interact with outside sources to collect real-world data. The data will then be processed and sent to buyers through chainlink services. Data providers earn LINK token rewards for providing valid data. What is Chainlink staking? Chainlink staking is a security mechanism that allows users to receive rewards for increasing assurances and security guarantees of oracle services by staking their tokens. How to stake Chainlink? You can stake crypto using DeFi or CeFi. A Web 3.0 digital wallet is required. Using MetaMask as an example, here are the steps to follow: Go to MetaMask and click on the "add token" button. Find "LINK" and click "Chainlink Token." Copy your wallet address and go to exchange or cold wallet. Once you locate the LINK tokens in the wallet, click "withdrawal." Select how much you want to transfer to the wallet and click the LINK. Navigate to the LinkPool dashboard and link your wallet to LinkPool. Then choose Stake or Withdraw. Final Thoughts Chainlink's Decentralized Oracle Network (DON) provides essential services to the Blockchain industry. Pulling data from external sources and interacting with other blockchains is crucial. Providing valid and trusted data is complex, but Chainlink has solved this problem using LINK rewards and negative consequences for invalid data. Chainlink is considered a network that seamlessly integrates into smart contracts and allows cryptocurrencies to perform various functions without changing their underlying codebase. Follow my Twitter @JoyyuanWeb3 to learn about the trends of Blockchain, Crypto, and Web3!

Binance Chain, also known as the home of BNB currencies, is increasingly becoming popular in the cryptocurrency world more rapidly than expected. Introduced by Binance in 2020, Binance Smart Chain has ensured the world experiences the quickest and most decentralized trading. Binance Smart Chain (BSC) offers a complete-featured decentralized advance setting developed on new Blockchain technology. Binance Chain also facilitates cross-chain compatibility, ensuring users are profiting from all chains. This article detailedly explores everything you need to know about BSC, including its pros and cons, how it works, etc. Without any further ado, let's dive right into it! First, What Is Binance Smart Chain (BSC)? Binance Smart Chain is a blockchain that operates similarly to the Binance Chain. But, unlike Binance Chain, Binance Smart Chain enhances smart contract performance and compatibility with the Ethereum Virtual Machine (EVM). The design aim was to keep the high amount of Binance Chain intact while integrating smart contracts into its network. Binance Smart Chain (BSC) is a blockchain network configured for operating smart contract-based applications. It is an independent blockchain that could function even when Binance Chain goes offline. Since BSC is compatible with EVM, it makes it simple for developers to port their projects over from Ethereum. For users, apps like MetaMask can interact with BSC by just changing a few settings. Binance Smart Chain Pros Since its launch in September 2020, BSC has experienced a significant increase in its user base. With several cross-chain connections on the platform, BSC users can quickly transfer their tokens from one system to another. Also, Binance Smart Chain's 3-second block time ensures quick transactions and validation, making it exceptional. Aside from the transaction speed and low gas fees, Binance Smart Chain offers other advantages making it a prevalent option amongst Cryptocurrency traders: EVM-compatibility It's an independent blockchain that provides security and protection with designated validators. Binance Smart Chain network features effectual native double chain communication, augmented for scaling high-functionality dApps. Shared with on-chain authority: PoSA (Proof-of-Staked Authority) introduces decentralization and community participants. As the native token, BNB serves as both the gas of smart contract performance and tokens for risk. With a 3-second block time, Binance Smart Chain allows high-speed transactions, costing network users a few cents. Tested and proven security features. Cross-chain compatibility. Binance Smart Chain Drawbacks Everything good has at least a downside; Binance Smart Chain is no exception. Below are some of the drawbacks of the BSC network: Launched as an EVM-compatible smart chain network, Binance Smart Chain depends on the Ethereum advancement community that acts as a way for every innovation in the network. BSC exhibits a centralized nature from its predecessor network Binance. Security problems with Ethereum. Binance also faces many cyber-attacks on its platform. How Binance Smart Chain (BSC) Works 1. Consensus Algorithm Binance Smart Chain makes block periods after every 3 seconds, thanks to the Proof-of-Stake consensus algorithm, unlike Ethereum, which takes about 13 seconds. It uses Proof of Staked Authority, PoSA, where users stake BNB to become validators. Users who propose a valid block will get transaction fees from the transactions added. Unlike various procedures, there is no block subsidy of freshly minted BNB because BNB is not inflationary. But on the other hand, the BNB supply reduces over time, as the Binance team often conducts coin burns. 2. Cross-Chain Compatibility Binance Smart Chain is the interconnected system to the existing Binance Chain. This dual-chain architecture operates on the idea that participants can quickly transfer assets from one blockchain to another. Apart from the trading speed, this interoperability also exposes participants to an intense setting that can suffice for many use cases. BEP-2 and BEP-8 tokens from the Binance chain are exchangeable for BEP 20 tokens, a new token system introduced for Binance Smart Chain. The simplest way to move tokens from one chain to another – BEP-2 to BEP-20 or vice versa – is using Binance Chain Wallet, available on browsers like Firefox and Chrome. 3. NFT Design and Support BSC has a sturdy presence in the Non-Fungible Token market. The NFTs are an element of blockchain classification that has become increasingly popular for their ability to add a rear layer to online assets. The cost of some Non-Fungible Tokens (NFTs) varies from 10s to 100s of thousands of dollars. 4. Staking One of the first advantages of Build and Build (BNB) – previously Binance Coin – was that token holders could choose to stake or HODL their tokens. The Binance Smart Chain directly maintains wallets used for the cross-chain. Hence, staking is among the most widespread and commonly used Metaverse and DeFi options available in today's market. When operators stake their Build and Build (BNB), they will get their returns sooner than usual. And specifically, with Binance Smart Chain's high-speed, staking Bitcoin and other assets transactions has become simpler. Staking is a primary reason for the rising popularity of the Binance Smart Chain. Ending Thoughts Undoubtedly, the Binance Smart Chain blockchain created a lot of buzz in the cryptocurrency world. The Binance Smart Chain centers around the Ethereum Network. Rather than ether (ETH), its integral crypto coin is known as Binance coin (BNB). However, Binance Smart Chain uses most of the same software as Ethereum, but it's slightly different. Users can directly link assets from other blockchains to Binance Smart Chain or transfer tokens from Binance exchange accounts to any crypto wallet they choose. Overall, currently, BNB continues to connect Binance and Binance Smart Chain. Although still in its early stages, the Binance Smart Chain appears promising and is becoming a user-friendly substitute for the primarily Ethereum-based Defi market. Follow my Twitter @JoyyuanWeb3 to learn about the trends of Blockchain, Crypto, and Web3!