The Ultimate Chainlink LINK Frequently Asked Questions List for 2020

  1. What is Chainlink? What does 'Chainlink' mean?
  2. How does Chainlink work?
  3. Who invented Chainlink? How was Chainlink created? Who is behind Chainlink?
  4. What is Chainlink used for?
  5. Why does Chainlink have value?
  6. How many Chainlink coins are there? What is the Chainlink maximum supply?
  7. What is a Chainlink transaction? How do Chainlink transactions work? Is Chainlink a blockchain?
  8. Are Chainlink transactions anonymous? Can Chainlink be traced?
  9. How is Chainlink created? Can Chainlink be mined? How does Chainlink mining work?
  10. Can Chainlink be taxed? Are Chainlink gains taxable? Are Chainlink transactions taxable?
  11. How does a Chainlink ATM work? Are Chainlink ATMs safe? Are Chainlink ATMs anonymous?
  12. Can Chainlink scale?
  13. Can Chainlink be stolen?
  14. Can Chainlink be hacked?
  15. Where is Chainlink stored? Where to store Chainlink?
  16. What is a Chainlink wallet? How do Chainlink wallets work?
  17. Who uses Chainlink? Where is Chainlink used?
  18. Who accepts Chainlink? Where is Chainlink accepted?
  19. Why is Chainlink the future?
  20. Can Chainlink crash? Will Chainlink crash?
  21. Is Chainlink a good investment?
  22. Where to buy Chainlink? How to get Chainlink?
  23. Can I buy Chainlink without ID? Is there a way to get Chainlink without SSN?
  24. Can I get Chainlink without KYC? Is it possible to buy Chainlink without verification?
  25. Which cryptocurrency to buy? Should I buy Bitcoin or Chainlink? Chainlink vs Bitcoin?
  26. Is Chainlink publicly traded?
  27. Can Chainlink reach 100? Can Chainlink reach 1000? Can Chainlink reach 10000?
  28. How long is a Chainlink transaction time?
  29. How many confirmations for a Chainlink transaction?
  30. How much is a Chainlink transaction fee? How much does a Chainlink transaction cost?
  1. What is Chainlink? What does 'Chainlink' mean?

  2. Chainlink is a token which uses the existing cryptocurrency infrastructure of Ethereum to implement a smart contracts platform. Smart contracts are code on the blockchain which is run when certain conditions are met. Chainlink attempts to bridge the smart contracts of the blockchain with external data, using software adapters called oracles. Chainlink is traded on bitni.com.

  3. How does Chainlink work?

  4. Blockchain based cryptocurrencies like Chainlink work by grouping transactions together in data blocks, then linking the blocks cryptographically. Chainlink uses the Ethereum blockchain. The chain of blocks is stored across a decentralized network of nodes, and distributed as peer-to-peer shared files. Quantities of Chainlink are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. The user's wallet keeps track of all their Chainlink addresses and adds up the balance.

  5. Who invented Chainlink? How was Chainlink created? Who is behind Chainlink?

  6. Chainlink was created by Sergey Nazarov and Steve Ellis as an attempt to bridge external data sources with blockchain smart contracts, using an intermediary called oracles, and built upon a token of Ethereum cryptocurrency infrastructure. Chainlink is maintained by chain.link, and the software is open source, so anyone can improve it.

  7. What is Chainlink used for?

  8. Chainlink can be used for bridging smart contracts with data outside the blockchain. Chainlink is used for anything money is used for - buying, selling, donations. But Chainlink can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Chainlink have value?

  10. Chainlink has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Chainlink has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Chainlink coins are there? What is the Chainlink maximum supply?

  12. All the Chainlink that will supposedly ever exist was created at it's beginning - 1 billion. The designers were very conscious of hyperinflation from fiat currencies, and wanted a currency with a ruthlessly fixed supply. 35% of the coins are sold off to the public, 35% is to fund node operators, and the remaining 30% is for funding continued development. This makes Chainlink a deflationary currency.

  13. What is a Chainlink transaction? How do Chainlink transactions work? Is Chainlink a blockchain?

  14. An Chainlink transaction is a transfer of value from one address to another. Unlike Bitcoin, which moves value by spending previously unspent transactions, Chainlink is a token that uses the existing blockchain infastructure of Ethereum. A transaction is created by a user on their Chainlink client software, then broadcast out to all the other nodes and becomes part of the Ethereum Blockchain.

  15. Are Chainlink transactions anonymous? Can Chainlink be traced?

  16. The Ethereum Blockchain is a public record of all transactions by all addresses. However, an address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an identity, the Chainlink user is safe. There is no way to "trace" a Chainlink address to the person using it - unless they leave clues connecting their Chainlink address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. How is Chainlink created? Can Chainlink be mined? How does Chainlink mining work?

  18. Traditional cryptocurrency mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Chainlink also has a blockchain, but with a critical difference - it is a token that uses the Ethereum Blockchain to keep a record of all transactions. All Chainlink coins were created at it's beginning.

  19. Can Chainlink be taxed? Are Chainlink gains taxable? Are Chainlink transactions taxable?

  20. Chainlink was not designed to be taxed. If no one reports their Chainlink gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Chainlink balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Chainlink ATM work? Are Chainlink ATMs safe? Are Chainlink ATMs anonymous?

  22. Chainlink ATMs allow a customer to buy Chainlink by inserting physical cash, like a vending machine, or send Chainlink to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Chainlink ATM is from a trusted manufacturer and operator, it should be safe to use. Different Chainlink ATMs have differing AML/KYC requirements.

  23. Can Chainlink scale?

  24. Chainlink has scaled to handle millions of transactions per month. Chainlink is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Chainlink attempts to improve on Bitcoin to solve scaling issues, by processing transactions every few seconds instead of 10 minutes.

  25. Can Chainlink be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Chainlink stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Chainlink be hacked?

  28. If Chainlink network could be hacked, it would have probably already happened. The blockchain is decentralized across many independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Chainlink exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Chainlink stored? Where to store Chainlink?

  30. The data of all Chainlink transactions is stored in a public Ethereum Blockchain distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the Blockchain. So the transactions are stored in the cloud - not on a centralized server, but on many independent nodes. Each user's Chainlink balance is also kept track of in their wallet.

  31. What is a Chainlink wallet? How do Chainlink wallets work?

  32. A Chainlink wallet stores all of the user's Chainlink addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Chainlink? Where is Chainlink used?

  34. Chainlink is used wherever smart contracts need external data. Millions of people everywhere in the world use Chainlink for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Chainlink useful if they are not already using it. Chainlink is also used as an investment and a hedge against inflation.

  35. Who accepts Chainlink? Where is Chainlink accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Chainlink to convert to other currencies, of course.

  37. Why is Chainlink the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Chainlink is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Chainlink crash? Will Chainlink crash?

  40. If Chainlink were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Chainlink's low after it's all-time high in the tens of dollars is still several dollars. For Chainlink to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Chainlink a good investment?

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Chainlink has not reached Bitcoin's high, it has performed relatively well, going from a fraction of a penny to several dollars at it's high - a pretty good investment.

  43. Where to buy Chainlink? How to get Chainlink?

  44. Exchanges are where Chainlink is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Chainlink without ID? Is there a way to get Chainlink without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Chainlink without SSN, you've come to the right place.

  47. Can I get Chainlink without KYC? Is it possible to buy Chainlink without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Which cryptocurrency to buy? Should I buy Bitcoin or Chainlink? Chainlink vs Bitcoin?

  50. In many ways, Chainlink is technically superior to Bitcoin. It has much faster transaction times. It has rediculously low transaction fees. However, Chainlink doesn't have the massive publicity that Bitcoin has (not all of Bitcoin's publicity is good, but apparently there's no such thing as bad publicity). And that's why Bitcoin is priced much higher. Many more people know about Bitcoin than Chainlink. However, that can change, as Chainlink could become more widely known in the future. Bitcoin is also fully decentralized, whereas Chainlink is maintained by the chain.link.

  51. Is Chainlink publicly traded?

  52. Most Chainlink trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Chainlink, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Chainlink reach 100? Can Chainlink reach 1000? Can Chainlink reach 10000?

  54. Hundreds, thousands, or even tens of thousands for a Chainlink coin may seem speculative, but Chainlink's high is already in the tens of dollars. Chainlink started out at practically nothing and rose in a parabolic curve to it's high a hundred times higher than the starting price. $100 is only about six times higher than the all time high. If the long term trend continues, Chainlink could reach new highs orders of magnitude greater.

  55. How long is a Chainlink transaction time?

  56. A new block on the Chainlink blockchain is added about every 15 seconds. The number of transactions in each block is limited to about 70. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Chainlink transaction time can be as short as the generation of one block in 15 seconds. However, 20-30 levels of blocks is needed for irreversibility, thus the safe transaction time is 5-7.5 minutes.

  57. How many confirmations for a Chainlink transaction?

  58. A Chainlink transaction can be tentatively completed in as little as 1 confirmation in 15 seconds. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 20-30 levels of blocks and thus 20-30 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is a Chainlink transaction fee? How much does a Chainlink transaction cost?

  60. A Chainlink transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. Fees have been as low as a few cents and as high as a few dollars. Lots of factors affect Chainlink transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

Start trading Chainlink instantly and anonymously here on bitni.com - no signup required!