Chainlink is an Ethereum-based cryptocurrency project aiming to standardize how blockchains get access to outside information and communicate across chains. The project consists of nodes called oracles that provide mission-critical information to hundreds of blockchain projects and DeFi protocols. The most prolific example is crypto asset prices.
Chainlink aggregates and comes up with an average price for supported assets and shares this information with customers that need it. While it may seem simple, this information protects customers from flash crashes and other price anomalies that could cause lending and short positions to be incorrectly liquidated.
One of the most compelling use cases for holding Chainlink tokens is the upcoming implementation of Chainlink staking, which allows Chainlink holders to earn staking rewards like interest income. The more Chainlink you hold, the more staking rewards you earn. Before staking goes live, the OKX Earn platform will allow Chainlink holders to earn a regular return immediately.
As Chainlink has so many high-profile partnerships and customers, many proponents of the project strongly believe that Chainlink will significantly appreciate in price in the future. If this happens, it could be wise to consider buying Chainlink regularly through means such as dollar-cost averaging.
As Chainlink tokens are not a currency, there are not many businesses or stores that accept it as a direct form of payment. However, Chainlink is widely supported at all major exchanges and DeFi platforms.