Understanding the Chainlink (Ticker: LINK) vision requires a little background knowledge.
Let's delve in! Skip to the good stuffBlockchains
Blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers or nodes. It is designed to be transparent, secure, and resistant to modification. Each transaction is grouped into a block, which is then added to a chain of blocks, creating a permanent and tamper-proof record. Blockchain technology has gained popularity due to its potential applications beyond cryptocurrencies, such as supply chain management, voting systems, and smart contracts.
A blockchain is a distributed piece of software which contains a ledger/notes that is cryptographically verified.
Cryptocurrencies
Cryptocurrency refers to digital or virtual currencies that use cryptography for security. Unlike traditional fiat currencies issued by governments, cryptocurrencies operate independently of any central authority. The most well-known cryptocurrency is Bitcoin, but there are thousands of others, often referred to as altcoins. Cryptocurrencies enable secure peer-to-peer transactions, typically through blockchain technology, and have gained attention for their potential as investment assets and mediums of exchange
A cryptocurrency is a digital coin that lives on a blockchain that is used to transfer value between wallets
Wallets & Public / Private Keys
Crypto wallets are digital tools that enable users to securely store, manage, and interact with their cryptocurrencies. They come in various forms, including software applications, hardware devices, or even paper printouts. Crypto wallets store a user's public and private keys, which are crucial for cryptocurrency transactions. Public keys are cryptographic codes that serve as the user's wallet address. They can be freely shared with others to receive funds. Private keys, on the other hand, are secret codes that provide access to the funds stored in the wallet. It is essential to keep private keys secure and confidential, as anyone with access to them can control the associated cryptocurrency.
A public key is a wallet address and is safe to share. A private key is the encryption key to unlock the public key.
Trust in Encryption
Truth through encryption refers to the concept of using cryptographic techniques to ensure the authenticity, integrity, and confidentiality of data. Encryption involves converting plaintext into ciphertext using complex algorithms and keys. By employing encryption, data can be securely transmitted and stored, preventing unauthorized access or tampering. The use of encryption allows individuals and organizations to establish trust and rely on the accuracy and confidentiality of information, enhancing privacy and security in various digital interactions and systems.
That's a big keychain!
The number of possible private keys for a public blockchain, such as Ethereum, is incredibly vast. The private keys are generated using a mathematical algorithm that produces a 256-bit number. The number of possible private keys in this case is 2^256, which is an astronomically large number with 78 digits. It is estimated that there are approximately 10^80 atoms in the observable universe. While this number is mind-bogglingly large, it is still significantly smaller than 2^256. This vast key space ensures the security of the blockchain network, as the probability of randomly guessing a private key is virtually impossible, protecting the funds stored in the wallet from unauthorized access.
Oracle Networks
Oracle networks act as intermediaries between blockchain platforms and external data sources. They provide a secure and reliable way to fetch and transmit data to and from smart contracts. Oracle networks ensure the integrity and authenticity of the data by employing cryptographic techniques and consensus mechanisms. These networks play a crucial role in enabling smart contracts to access real-time information, enabling the automation of various decentralized applications
Oracles are the only way to get data onto the blockchain.
Multi chains!
Multichain involves multiple blockchains working together, each for specific tasks. Its advantages include better scalability, performance, and security. By spreading transactions across several chains, it can handle more transactions without slowdowns. If one chain fails, others can keep working, enhancing reliability. Multichain also allows customization for different needs, fostering innovation in blockchain applications.
Bridging Blockchains
A cross-chain bridge is a tool that links two separate blockchain networks, enabling the transfer of assets or data between them. It works by using specialized smart contracts or protocols to lock assets on one blockchain and issue equivalent tokens on another, allowing users to access a wider range of assets and services across different chains.