Learning the friendly way

It's never too late to learn about the new-age financial payment system. Bitcoin has become infinitely more popular with each passing year, and as adoption rates continue to rise, now is the perfect time to become familiar with the world's first and biggest cryptocurrency. 

What Is Bitcoin?

Bitcoin is a peer-to-peer payment system that uses the internet to operate and not a centralised authority like all other currencies. This digital currency cuts out the middleman and instead allows users to send money directly to one another, eradicating high fees, lengthy application processes and time spent waiting for money to clear.

Instead of being operated by a bank, government or financial institution, Bitcoin is run by a network of computers around the world that all follow the same protocol to ensure the network operates smoothly. Blockchain technology forms the backbone of Bitcoin and ensures that all transactions are facilitated in a timely, transparent and immutable manner. 

Bitcoin is a secure, decentralised, borderless payment system and form of digital currency that operates 24 hours a day, 7 days a week. 

Bitcoin is often compared to gold as both assets price have rapidly increased over the recent years. While regulation regarding cryptocurrency is still being ironed out, it still remains a widely adopted and heavily used payment system.

What Are The Benefits Of Bitcoin?

Bitcoin brought about an entirely new way to manage one's funds. With the use of blockchain technology and the internet, Bitcoin has become a thriving financial ecosystem over the years. Below we outline several benefits of using Bitcoin.

• Decentralised. The network is entirely free from centralised control, including stopping transactions, freezing accounts and requiring complex paperwork.
• Accessible. Anyone anywhere can tap into the Bitcoin payment system as long as they have an internet connection. The platform is fully inclusive.
• Transparent. While the network is considered to be "pseudonymous", all transactions are still recorded on a public ledger in real time, providing an entirely transparent ecosystem.
• Liquidity. Bitcoin can be traded on hundreds of platforms around the world, ensuring that its liquidity is always in the green.

How Does Bitcoin Work?

Using blockchain technology, the network of computers is able to facilitate digital asset transactions from one peer to another bypassing any middleman. Let's break that down. 

Say Amal wants to send George 1 BTC. She will initiate this through her Bitcoin wallet by entering George's wallet address and the amount. Bitcoin is stored in digital wallets which have two important codes: one is the wallet address (known as the public key) and the other is the private key, a code only the owner of the wallet should know (similar to an ATM pin).

Once Amal has initiated the transaction, it will enter a pool of pending transactions on the network. From there, miners will "pick it up" and compete with one another to be the first to solve a complex cryptographic puzzle. The first one to do so will execute the transaction. 

The funds will then leave Amal's wallet and be deposited into George's wallet. This will be recorded on the blockchain, a transparent digital ledger shared across the entire network, citing the date, time, wallet addresses and amount in a block, which are stored in chronological order. Each Bitcoin wallet's balance will then be updated.

Wallets typically require 3 confirmations before the funds can be spent. This means that three new blocks need to be added to the blockchain, each block representing a confirmation. 

What Gives Bitcoin Its Value?

Bitcoin's value is determined by supply and demand, fluctuating in price when supply decreases and demand increases. When Bitcoin was created it was written into its code that only 21 million BTC will exist. By putting a cap on its total supply, the currency is naturally deflationary in value, the opposite of fiat currencies.

Due to Bitcoin's prominent increase in value over the years many investors have deemed it a strong store of value. This paired with its constant availability and high liquidity makes it an excellent long term investment, known in the industry as "hodling". 

What Is Bitcoin Used For?

With the seamless functionality of cash, its "always open" usability and the fact that it can be transferred anywhere in the world in a matter of minutes, Bitcoin is an excellent medium of exchange. 

Anyone can use Bitcoin as payment for goods and services - many merchants around the world accept the cryptocurrency - or as a store of value. As long as the person has an internet connection, they can send and receive Bitcoin. 

Where Did Bitcoin Come From?

First announced to the world on 31 October 2008, Bitcoin was officially launched in early January 2009. The creator, who remains anonymous to this day, goes by the name of Satoshi Nakamoto and is the pioneer behind the crypto revolution. 

They stated in the project's whitepaper that Bitcoin was created as a response to the global financial crisis. Instead, they wanted to create a currency that was free from government and banks' control, allowing people to take ownership of their funds and be solely responsible for them. 

Somewhere in 2010, Satoshi Nakamoto disappeared and no one has managed to track down their identity since. Many speculate that it was a group of people and not one acting alone.

Since the advent of Bitcoin, a number of new cryptocurrencies have been created. Any new currency that launched was referred to as an altcoin (alternative coin), and this term has stuck. There are over 12,000 cryptocurrencies today, each with its own unique use case. For example, Ethereum was created so that developers could build decentralized applications, while cryptocurrencies like Litecoin were created to improve on Bitcoin's payment system.

Where to buy Bitcoin (BTC)

If you're considering including BTC in your cryptocurrency portfolio, look no further than the Tap app. With the Tap app, you can conveniently manage and trade a diverse range of digital assets, including BTC. Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage in the crypto market

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If you know anything about the NFT craze in the cryptosphere, you’ve likely heard of the wildly successful Bored Ape Yacht Club (BAYC). Expanding on this concept is the ApeCoin ecosystem, a cryptocurrency positioning itself at the forefront of Web3. ApeCoin is controlled by the ApeCoin DAO, a decentralized autonomous organization of which all APE holders can become a part.

What is the ApeCoin ecosystem?

ApeCoin is an ERC-20 utility and governance token used within the APE ecosystem. The founding roots of ApeCoin lie in the NFT series Bored Ape Yacht Club (BAYC), a creation by Web3 company Yuga Labs. 

Enjoying viral success and arguably one of the most successful NFT collections to date, the 10,000 unique BAYC cartoon drawings earned cult status when their prices soared and big celebrities started buying them. To date, the most expensive BAYC NFT sold for a staggering $3.4 million.

ApeCoin, the fungible token, and a number of products and services make up the ApeCoin ecosystem. The coin is governed by the ApeCoin DAO, of which all token holders are eligible to become members. The ApeCoin DAO makes decisions on matters such as governance rules, partnerships, projects, Ecosystem Fund allocations, and more. The Ecosystem Fund supports community-driven initiatives and was allocated 62% of the ApeCoin supply when launched. 

In April 2022, Yuga Labs started minting virtual land in their Otherside metaverse, using ApeCoin for payment. ApeCoin is used to facilitate all transactions taking place in this virtual world.

Who created ApeCoin?

ApeCoin was created by Yuga Labs, inspired by the Bored Ape Yacht Club project. Supported by the Ape Foundation, ApeCoin is governed by the ApeCoin DAO which creates a framework for permissionless governance processes. These decentralized authoritative frameworks are designed to create a fair and inclusive ecosystem in which the coin can flourish. 

Within the Ape Foundation is an administrative council known as the "Board" which is responsible for implementing the decisions made by the ApeCoin DAO members. This Board is voted in by the ApeCoin DAO members on an annual basis and is not controlled by Yuga Labs. 

How does ApeCoin work?

ApeCoin grants holders access to exclusive games and services within the Ape Ecosystem and can be used for transaction purposes on the Otherside metaverse. It also acts as a tool in which third-party developers can tap into the Ape Ecosystem by incorporating APE into their own projects, games, and services. 

Animoca Brands, for instance, created a play-to-earn (P2E) game called Benji Bananas that utilizes ApeCoin, incentivizing and rewarding players with APE. 

From a governance perspective, holders of APE can become members of the ApeCoin DAO which vote on decisions impacting the ecosystem's functioning and growth. This might include anything from which partnerships the ecosystem should pursue to how funds are allocated. These decisions are then implemented by the ApeCoin Foundation, the 5-member Board acting as the DAO's legal representative. 

What are APE tokens?

ApeCoin (APE) is an ERC-20 token compatible with the Ethereum blockchain and any supported wallet. The coin was launched in March 2022, with all 1 billion tokens minted at once. When minted, 62% of the coins were allocated to the Ecosystem Fund which are then allocated to community-based projects based on Ape DAO decisions. 30.25% were released into circulation for the community to engage with. 

How can I buy the APE token?

If you're considering including APE in your cryptocurrency portfolio, look no further than the Tap app. With the Tap app, you can conveniently manage and trade a diverse range of digital assets, including APE. Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage in the crypto market

While you’ve likely come across the world of cryptocurrencies, you most probably have stumbled upon the term “blockchain”. But what is the blockchain solution? Blockchain is not only the revolutionary technology behind cryptocurrencies, it also has a large use case outside of the cryptocurrency and even the finance sector.

In the decade since blockchain technologies and digital ledger technology came to light, a host of blockchain networks have been created, most with their own digital currency. As the industry has grown and new blockchain networks have emerged, innovation in the space has increased significantly.

From the Ethereum blockchain providing a platform on which developers can create digital assets and smart contracts to corporate organizations implementing a private blockchain in order to streamline their services, the technology is propelling mankind forward in ways not witnessed in decades.

The blockchain solution provides much more than just digital assets, and industries far beyond just the payment processing ones are catching on. With traditional business networks incorporating the technology, the world of permissioned blockchain is igniting.

What is blockchain?

Blockchain is a decentralized, transparent, immutable technology that keeps a public record of all information entered. Designed to record and distribute information, not to be edited. Also referred to as a public ledger, a blockchain keeps a record of all information ever inputted and stores it chronologically in blocks.

These blocks are linked to each other through a hashing system, which ensures that no one can ever tamper with the previous records, or try to manipulate the information on them. The “chain” of blocks make up the blockchain database.

The decentralized technology is not typically run by one entity, but rather from a variety of computers (also known as nodes) that make up the network, and work together to validate transactions and all information added to the blocks. Blockchain can be used in two forms, as a public blockchain or as private blockchain networks.

The public version allows anyone to view all information on the network, while the private reserves the information for members granted access.

The advantages of blockchain technology

Powerful Technology

Invented in 2008 alongside Bitcoin by an anonymous entity Satoshi Nakamoto, blockchain is the technology that fueled the new way that money is transacted. Not only that, the technology offers incredible use cases far beyond the financial world. 

Fully Trusted, Fully Automated

One of the key features of blockchain is its ability to function without a central authority. The technology is designed to be maintained by various operating systems on the network, with full autonomy dispersed evenly. Information is stored on the blockchain in such a way that everyone can view it but no one can go back and tamper with it.

Powering Industries

While blockchain is the technology behind crypto, it also offers an incredible backbone to a diverse range of industries outside of this space. Companies like Nestle, Microsoft and Walmart are onboarding blockchain, proving to offer a strong and highly adaptable infrastructure to financial, property, and supply chain management entities. The number of blockchain companies is growing by the day.

The core benefits of a blockchain network

Decentralized

Blockchain networks are designed to be entirely decentralized meaning that there is no one central authority. The entire network is maintained by nodes (computers) around the world and no single entity has control. 

Immutable

Once the information has been added to a blockchain, no one can tamper, edit, or remove it. As information is verified and added to blocks, this solidifies its presence on the blockchain forever. 

Transparent

Blockchain offers a transparent view of all the activity that takes place on the network. This takes away the need for any checks or balances as all the information is available at any given time, in real-time.

What is the difference between a public blockchain and private blockchain?

When understanding what is blockchain, a common question is whether blockchain is secure. The answer is yes, blockchain is very secure.

Due to its decentralized nature, the technology requires a network of operators (computers) to verify and input all the information. As soon as one tries to input incorrect information or conduct illicit transactions, the network will recognize this and reject it immediately. 

The difference between a public and private blockchain is that public blockchain networks are open for anyone to see, while private blockchains are closed to an organization or a selected group of people.

Cryptocurrency networks are examples of public blockchain networks in that anyone can view all the transaction data. For a private blockchain, however, users will need special permission to access this information.

How is blockchain tamperproof?

Each block is made up of three things: the hash code of the previous block, the relevant information, and its own hash code.

When a new block is added, the new block will again have the hash of the previous block, the relevant information, and its own hash. This special sequence of hashes ensures that all blocks are stored chronologically, in a linear fashion, meaning that you cannot tamper with one block's information without tampering with every block after that.

Tampering with blocks would take an enormous amount of computing power and is largely considered impossible. Hence the security of using a digital asset or digital currency.

Blockchain explained: how does it work

At its core, blockchain records and distributes information to a wide network of users that participate in verifying the information and maintaining the network. Let’s take a deeper look at Bitcoin transactions to further explain how blockchain works. 

If one user wanted to send a portion of Bitcoin to another user, they would require the user’s wallet address. Each wallet is made up of two codes, a public and private key, which enable the user to receive BTC (through the public key), as well as access BTC and conduct transactions (through the private key). The sender will then input the receiver’s wallet code and send the amount of Bitcoin they desire. 

This transaction will then enter a pool of transactions waiting to be verified by a miner on the network. The miner will ensure that the sender owns the amount they are sending, and verify the transaction along with a number of other transactions.

On the Bitcoin network, the size of one block is 1MB, which equates to roughly 3,200 transactions able to be stored in one block. When building a blockchain network, the size of the blocks can be increased or decreased to suit the use case. 

Once the transaction has been verified, the miner will record transactions processed and ensure they are added to the chain. The transaction ledger will then be distributed to the rest of the operators on the network. This new version will then override the older versions, and so on as more blocks are added.

Once the block is added to the blockchain and distributed, the funds will reflect in the receiver’s wallet. No need for a bank account or legal contracts, Bitcoin (and other digital currencies) operate entirely separately from traditional banking institutions and allow for the fast, efficient and cost-effective transaction of value.

Fraudulent transactions cannot take place as this will be flagged long before the block is added to the chain. Blockchain work in such a way that network participants can immediately flag ill actors and dismiss fraudulent financial transactions.

Understanding the difference between blockchain and the Bitcoin blockchain

The burning question: how does blockchain compare to Bitcoin. The answer is that it doesn’t, there are two separate, co-dependent technologies. Bitcoin, the cryptocurrency, is built on blockchain technology and requires it to function. There is no Bitcoin without blockchain technology.

Consider it the backbone of all cryptocurrencies. Blockchain technology, however, is an adaptable technology that can be used outside of the cryptocurrency industry. The technology can be used in any industry, provided that they require a transparent, immutable public ledger. 

One thing the two do have in common is that they were both introduced to the world at the same time. While the concept of blockchain technology was initially invented by researchers W. Scott Stornetta and Stuart Haber in 1991, it was referred to as distributed ledger technology (DLT) and was created purely to store office documents.

The anonymous entity Satoshi Nakamoto built on this and ultimately solved the double spending problem it was plagued with. In 2008, Nakamoto released both blockchain technology and Bitcoin in a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

The Bitcoin blockchain refers to the network, while blockchain technology refers to the technology as a whole.

In conclusion

What is blockchain? Blockchain technology is the transparent, immutable storage of information. As mentioned earlier, this technology has use cases far outside of just the cryptocurrency and financial ecosystems.

Industries like renewable energy, supply chain management, and even farming sectors are now incorporating blockchain technology into their business systems, empowering them with a fully automated and safe means of storing records. 

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A recent addition to the top 5 biggest cryptocurrencies based on market cap, Cardano has earned itself an impressive position in the market. In 2021, the Cardano price saw significant price gains as the cryptocurrency went from $0.15 (December 2020) to highs of $3.10 (September 2021). This proved to be a valuable investment for early buyers.

The innovative chain saw increased trade volume on exchanges, not to mention a peaked interest in the service that the platform provides. Designed to be the next generation of Ethereum, let's explore what Cardano is and why has it risen in the ranks so quickly. 

What Is Cardano?

Cardano is the blockchain platform that is taking the industry by storm. Alongside its cryptocurrency, ADA, Cardano provides developers with a platform on which to build decentralized applications (dapps) and smart contracts. Through a more scalable and sustainable model, Cardano seeks to improve on Ethereum's offering and propel the blockchain and crypto industry into a more eco-friendly future. 

Cardano uses a Proof-of-Stake consensus to facilitate the network and is considered to be a third-generation blockchain platform (Bitcoin being the first, Ethereum the second). Unlike other blockchain platforms, Cardano does not have a whitepaper and instead relies on rigorous academic and peer-reviewed research. The platform has numerous ties with universities around the world, contributing to the funding of the development of blockchain research. 

Who Created Cardano?

Cardano was first conceptualized in 2015 and later launched in September 2017 by Ethereum co-founder, Charles Hoskinson. His goal was to build a highly scalable and energy-efficient smart contract platform. After leaving the Ethereum team, Hoskinson grouped together a team of expert engineers and academics and set out to build a layered blockchain platform from scratch. 

Today, the platform is developed by a group of organisations that each focus on different elements of the business. The first is the Cardano Foundation which is responsible for standardizing, protecting and promoting the protocol technology. Input-Output Hong Kong (IOHK) focuses on building technological solutions centred around financial inclusion, while its sister company Emurgo is a global initiative designed to "support developers, startups and enterprises in developing blockchain solutions".

Together these companies assist in the growth and development of Cardano and appear to be doing a great job considering the impressive price gains recently witnessed. While regulatory news and Bitcoin may be behind many altcoin price swings, Cardano has done well to establish its value in the crypto market and build a community that supports its goals.

How Does Cardano Work?

Through a Proof-of-Stake (PoS) mechanism known as Ouroboros, Cardano provides peer to peer transactions, dapp development and the creation of smart contracts. The layered architecture makes this possible, with one layer, known as the Cardano Settlement Layer (CSL) responsible for validating transactions and maintaining the ledger of balances while the Cardano Computing Layer (CCL) is responsible for the execution of all dapp computations via smart contracts. 

The separation of these two layers allows the platform to offer lower fees, less network congestion and faster transactions. When thoroughly tested in 2017, Cardano was able to process 257 transactions per second (TPS), a large jump from Bitcoin's 4.6 TPS and Ethereum's 15 - 20 TPS. 

Through its network of validators (known as a miner on a Proof-of-Work mining network) who each hold a stake in the network, Cardano is able to deploy smart contracts, facilitate the peer to peer exchange of value and provide the building blocks for dapp and token creation. 

What Is ADA?

Before we answer what is ADA, let's first cover where the name came from. ADA is a nod to the person regarded as the "world's first computer programmer", the 19th-century mathematician, Ada Lovelace. Cardano on the other hand was named after the 16th-century Italian polymath Gerolamo Cardano. Each phase in the project's development is named after famed historical characters pertaining to maths, physics and literature.

While ADA can be used as digital cash to conduct payments, the cryptocurrency has a wider range of uses. The native token to the platform's operations, ADA, can be used to facilitate transactions, as a store of value, to participate in staking functionality, and to pay transaction fees on the network. 

ADA will also be used as a governance token in the future, allowing its holders the ability to vote on upgrades and changes on the platform. This is in line with Cardano's intentions to make the network entirely decentralized and community-driven, incorporating an automated treasury system that would oversee and execute all funding required. 

Cardano's Roadmap

Another interesting element to the Cardano network is that all five development phases are consistently worked on at the same time, as opposed to moving on to the next once one is complete.  

Of the five phases that each focus on specific functionalities, three so far have been completed, the most recent occurring in August 2021 when the platform launched smart contract functionality. The next two are focused on scaling, which involves implementing side chains that can facilitate sharding, and then its governance level, which will upgrade the platform into a fully self-sustainable and decentralized platform. 

Where To Buy Cardano (ADA)

If you're considering including ADA in your cryptocurrency portfolio, look no further than the Tap app. With the Tap app, you can conveniently manage and trade a diverse range of digital assets, including ADA. Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage in the crypto market.

When it comes to understanding Bitcoin, an important aspect to get familiar with is the mining of it. As we explore what is Bitcoin mining and how does it work, we aim to empower you with a greater understanding of how the network functions as well as how blockchain technology facilitates the operations on the backend. Adaptable to many industries outside of the cryptocurrency space, blockchain technology is at the forefront of the tech revolution. Understanding how Bitcoin mining works is the first step to understanding the technology too. 

What is Bitcoin mining?

Forget about shovels and dark tunnels, Bitcoin mining is the decentralized manner in which transactions are verified and new coins are minted. Mining also plays a vital role in the maintenance and operation of the network, ensuring both the security and integrity of the platform at all times. The actual process of Bitcoin mining involves miners using sophisticated computers to solve complex cryptography problems.

The Bitcoin network is made up of a number of nodes (computers) and miners around the world that communicate with each other and constantly share the updated record of the blockchain. The blockchain stores all transactions in a transparent and immutable manner, allowing anyone to view it from wherever they are, however, no one can make any changes.

How does Bitcoin mining work?

Let’s say someone in Japan wants to send money to someone in America through the Bitcoin network. The user in Japan would initiate a transaction from their chosen wallet, pay a network fee, and execute the transaction. This transaction would then enter a mempool, a pool of transactions that are waiting to be confirmed. Typically mempools work on a “first come first serve” basis, however, users can opt to pay a higher network fee should they want to push their transaction further forward in the que. 

Miners will then pick up a number of transactions in the mempool and attempt to solve the complex cryptographic puzzle that will lead them to mining the block. The first miner to solve the puzzle is rewarded with the task of verifying the transactions and adding them to a block, in turn receiving the network fees as well as the block reward. Each block on the Bitcoin network can hold 1MB of transactional data. 

While many miners will attempt to solve the math problem using their own resources, only one miner will be successful. This has sparked a conversation, largely fueled by Elon Musk’s recent tweet, over the electricity consumption it takes to mine Bitcoin. Tesla, the company that Musk heads, recently withdrew Bitcoin from their payment options due to the un-eco friendly manner in which the network operates, as it goes against their company ethos. 

Once the miner has verified the transactions, ensuring that the wallet addresses exist and that there are available coins in the senders’ account, all the transactions are added to a block. This block is then added to the blockchain after the most recently added block, each block indicating the hash code of that block and the block before. This ensures that no one can tamper with the order or edit the content of any blocks. 

The user in America will then receive a notification confirming that their wallet has received the BTC, however it will need to go through three confirmations (sometimes more) before being accessible. Each confirmation is represented by a new block added to the blockchain following the block with your transaction. 

What is a block reward?

The block reward is a monetary reward given in Bitcoin to the miners for adding a new block to the blockchain. It is also the process used to mint new coins and in the process enter them into circulation. Alongside the block rewards, the miner responsible for adding the new block to the blockchain will also receive the network fees of each transaction verified within that block. 

This makes Bitcoin mining a lucrative endeavour, however, the start up costs are significant and your success rate will depend on the equipment, power, and cost of electricity in your area.

What is the halving mechanism?

As Bitcoin will only ever have 21 million coins released, Satoshi Nakamoto created a mechanism that ensures the slow release of coins over time. This is called the halving mechanism, and it automatically executes every 210,000 blocks. During the halving the block reward is halved, ensuring that the cryptocurrency remains deflationary in nature.

This means that for every 210,000 blocks added to the blockchain, the block reward given to the miners will halve. To date there have been three halvings in Bitcoin’s history, with the last one taking effect in May 2020. The block reward is currently 6.25 BTC for every block added to the blockchain.

Want to enjoy the benefits of Bitcoin without mining?

Experience the Bitcoin phenomenon without the need for complex hardware and excessive energy consumption. The Tap app offers a gateway to the Bitcoin network, enabling users to effortlessly purchase, sell, and retain Bitcoin and other cryptocurrencies. This streamlined process takes just minutes, empowering you to seamlessly engage BTC transactions and holdings.

In a string of new crypto assets available on Tap Global, Chainlink is one of the latest supported cryptocurrencies. The platform is renowned for being one of the biggest oracle platforms in the cryptosphere, making it possible for real-world data to communicate with blockchain applications.

Okay, so it's time to break down exactly what Chainlink is. You might be wondering why you should even care about this network when there are plenty of other decentralized projects out there. It all comes down to the fact that Chainlink aims to fix one obstacle that has prevented smart contracts from becoming more widespread in business and industry. Below we take a deeper look at what Chainlink is and what the platform has to offer. 

What is Chainlink (LINK)? 

Chainlink is a decentralized oracle platform designed to merge the blockchain world with the real world through data integration. The main aim of the platform is to allow smart contracts to capture real-world data, merging the two worlds.

Smart contracts are digital agreements that automatically execute when the agreed-upon conditions are met. Native to the blockchain industry, there is a significant gap between smart contracts capturing blockchain-specific data and external data like the weather, fiat currencies prices, sports scores, etc. 

Bitcoin, for instance, has a very small range of these input capabilities, while Ethereum can handle more due to its smart contract functionality. Chainlink is designed to provide a far greater range of input across the blockchain space through its network of oracles. 

These oracles are data providers that provide a bridge between smart contracts and external data sources. Each oracle is incentivized through a "reputation score" system to provide accurate data and rewarded accordingly with the platform's native token, LINK. 

Who Created Chainlink?

In 2014, Sergey Nazarov and Steve Ellis created a platform called SmartContract which allows smart contracts to come to life by connecting them to external data and widely accepted bank payments. This acted as the prelude to what would become Chainlink. 

The first version of Chainlink first emerged on the scene in mid-2017, founded by SmartContract. Three months later, the Chainlink whitepaper was launched by Navarov and Ellis. This was followed by a successful ICO which raised funds equating to $32 million, selling roughly 35% of the max supply of 1 billion LINK, funding the further development of the platform.

How does Chainlink works?

Alright, so now let's dig down into the nitty-gritty of how Chainlink works. Chainlink allows smart contracts to access external data. To do this, it provides an off-chain infrastructure that links smart contracts to all kinds of different data providers. This makes it much easier for smart contracts to get the information they need. The smart contract can then use this data in whatever way it needs to.

The first thing to understand is that smart contracts need external data in order to do their jobs. This makes sense, right? Your standard contract clearly specifies what happens when certain conditions are met. So what determines whether (and when) those conditions occur? Usually, it's some external force that a smart contract simply doesn't know about.

That means a blockchain-based smart contract can't fulfil its purpose without a way to get information from outside of the blockchain. So what do you do? You could have every individual app developer write their own oracles for each and every smart contract... or you can use a decentralized oracle network.

But what is the difference between centralized and decentralized oracles? Chainlink is great because it can be used to provide an 'outside view' to smart contracts... chainlink allows blockchain applications to securely access off-chain resources like traditional APIs, bank payments, and any other resource that's not currently on the blockchain.

Chainlink provides the security that developers need to run smart contracts without worrying about whether their favourite API is having problems. Chainlink also makes it possible for new data sources to be added to any smart contract which needs them.

Chainlink has three main processes in which it facilitates the communication of off-chain data with on-chain smart contracts. This is done through oracle selection, data reporting and result aggregation, as outlined below.

Oracle Selection

In this step, network users create a service-level agreement (SLA) outlining a set of desired data requirements. The platform then connects that SLA with relevant oracles providing that data. Parameters are then set and the user submits the SLA and deposits the required amount of LINK into what is called an Order-Matching contract, which is matched to the best bidding oracles. 

Data Reporting

Oracles then acquire the necessary real-world data outlined in the SLA from external sources, process the information and send it back to the smart contracts operating on the Chainlink network.

Result Aggregation

The results obtained by the data oracles are then tallied in an Aggregation contract, which assesses the validity of the data. It then allocates a score of the sum of all the data received to the user. This "track record" is used to verify an oracle's integrity, keeping a log of its completed requests, amount of LINK staked and average response time. 

Chainlink is also able to connect with oracles outside of its own blockchain network which is able to collect real-world data requested by the contracts. This process is managed by the Chainlink Core and Chainlink Adapter nodes. 

The network uses a Proof-of-Stake (Pos) consensus, relying on a staking protocol to ensure the network's security. 

How does Chainlink benefit me?

Chainlink is a decentralized oracle network that allows smart contracts to connect to external data sources. These can include APIs, internal systems, or other types of external data feeds. Chainlink's goal is to create a platform where developers aren't restricted from having their smart contracts interact with the outside world in any way they see fit.

You can start using Chainlink right away - no new platforms to learn, APIs to configure or other complex integrations.

chain link will never charge a fee for access to any of our oracle services. Our only source of revenue is the tokens you stake when retrieving outsourced data from your peers on the network.

What is LINK?

LINK is the native token to the Chainlink network and facilitates the communication of data. Considered to be an essential tool in merging blockchain technology with real-world applications, the token has gained wide popularity in the blockchain industry. Users use LINK to pay the nodes for their retrieving, verifying and sending of data. These prices are established by the node operator and based on the current market and demand for that data.

The node operators stake LINK in the Chainlink network to prove their commitment and good intentions. Nodes with bigger stakes take priority over nodes with smaller ones when matching them with SLAs.

LINK is an ERC20 token that powers the ChainLink Network. The LINK token serves three primary purposes:

1. A method to pay ChainLink Node operators for the retrieval of data from off-chain data feeds, like web APIs and other inputs
2. Incentivize the development of oracles that provide data to smart contracts.
3. A method of staking by clients who want access to our oracle network. 

The primary purpose of the LINK token is to secure the network by staking them. The user must stake a certain amount of LINK tokens to run a ChainLink node, which then acts as an oracle. In return, the user is paid for providing this service.

How to buy Chainlink

If you're considering including LINK in your cryptocurrency portfolio, look no further than the Tap app. With the Tap app, you can conveniently manage and trade a diverse range of digital assets, including LINK. Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage in the crypto market.