Bitvavo makes Chainlink as easy as possible. Here are answers to common questions to help you make your first steps in the world of digital assets.
Chainlink (LINK) is a decentralized network of oracles, meaning "nodes" in this context, which focuses on making external data usable for smart contracts. Smart contracts cannot access data themselves now that the underlying blockchains cannot support communication with external systems because of their underlying consensus protocols. As a result, smart contracts cannot always be executed, for example when external data is required for the implementation of the agreement. Chainlink wishes to change this through its decentralized network of oracles.
The objective of Chainlink is to make external data (off-chain) usable for smart contracts (on-chain) and as such Chainlink has the following two important components:
1. On-Chain functions
The first component of Chainlink consists of smart contracts that run on the Ethereum Blockchain. These smart contracts relate to the processing of external data from parties who want to use the oracle services. The smart contracts ensure that the requested external data is matched with the correct oracles.
2. Off-Chain fuctions
The second component of Chainlink consists of oracle nodes which are connected to the Ethereum Blockchain. The oracle nodes are responsible for collecting the external data as requested in the smart contracts. After retrieving the relevant data, this is processed by the oracle nodes and made applicable for the smart contracts on the Ethereum Blockchain. In exchanges for this work, you will receive the Oracles Link.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store Chainlink. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing Chainlink and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store Chainlink without any technical knowledge. Here is a brief overview of the existing wallet options to store your Chainlink:
Hosted wallets are wallets where the private keys to your Chainlink are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your Chainlink online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your Chainlink. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your Chainlink, and if malicious parties have access to your device, your private keys (and therefore your Chainlink) can be stolen.
A hardware wallet is a physical device on which you can store your Chainlink offline. It is one of the safest ways to store your Chainlink, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your Chainlink is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive Chainlink. Once you have purchased Chainlink on Bitvavo, you can choose to send your Chainlink from your Bitvavo wallet to your own software or hardware wallet.