Why Did Chainlink (LINK) Rise?
Chainlink is a decentralized data tool network that enables external data acquisition on blockchains and aims to integrate real-world systems with smart contracts. Smart contracts are one of the fundamental structures of blockchains, and these contracts are generally designed to make automatic and reliable transactions. However, as blockchains need to be, direct access from the outside world is available and can be restrictive for some applications.
This is where Chainlink comes into play. Chainlink uses special smart contracts served as “oracles” that access external data blockchains. Oracles consist of real-world patterns and are designed to present them to smart contracts. Chainlink oracles operate in a decentralized manner, meaning they are not affiliated with a central authority. This enables the partitioning of real-world data while maintaining blockchains in a decentralized and trustworthy manner.
This is important for many applications, especially in financial contracts, prediction markets, insurance and many more. Thanks to Chainlink, these applications can reliably access and process transactions in the real world. This allows blockchain technology to have a wider range of uses and replace traditional structures.
Chainlink is an important tool that expands the potential of blockchains and makes smart contracts more functional with real-world data.
You stated that the LINK token has experienced a 10.50% increase in the last 24 hours. Prices of cryptocurrencies can change depending on many factors, and market news, partnerships and developments can have important information on prices. Vodafone Digital Asset Broker (DAB) and collaboration with Sumitomo to join the Chainlink network could be an important development that could increase the value of the LINK token.