As the second-largest cryptocurrency by market capitalization, Ethereum has gotten a lot of attention from investors and crypto enthusiasts alike. One question that often comes up is whether or not Link, the native token of the Chainlink network, is an Ethereum token.
The answer is yes and no. Link is an ERC20 token, which means it was built on the Ethereum blockchain and adheres to certain standards that allow it to be interoperable with other Ethereum-based assets.
However, Link is also its own independent cryptocurrency with its own blockchain. So while Link may be an Ethereum token, it’s also much more than that.
Link was created to be a decentralized oracle network. Oracles are third-party services that provide external data to blockchains.
NOTE: Warning: Is Link an Ethereum Token? is a question that is often asked, however, it is important to note that Link is not a token issued on the Ethereum blockchain. Link is an ERC-20 token issued on the Chainlink network. It has no connection to Ethereum and cannot be used as a form of payment on the Ethereum network.
This data can be anything from weather reports to stock prices. The Chainlink network allows these Oracles to connect to smart contracts on Ethereum (and other blockchains) and provide them with the data they need to execute their contracts.
In this way, Link bridges the gap between the off-chain world and on-chain smart contracts. This is a crucial function, as it allows blockchains to interact with real-world data and applications.
Without Chainlink, Ethereum (and other smart contract platforms) would be limited to working only with data that is already stored on the blockchain.
So while Link may be an Ethereum token, it’s also much more than that. It’s a key piece of infrastructure that allows Ethereum (and other blockchains) to interact with the real world.
And that’s why Link is one of the most promising cryptocurrencies today.
10 Related Question Answers Found
As the native cryptocurrency of the Ethereum network, ETH is also used to pay for transaction fees and computational services on the Ethereum network. While ETH is the currency of the Ethereum network, there are other tokens that exist on Ethereum and are used for a variety of purposes. One such token is Chainlink (LINK), which is used to power the Chainlink decentralized oracle network.
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