What is a link token & how does it work?

It allows the tokens to be processed and received by smart contracts within a single transaction. The LINK token is used in the Chainlink network to compensate Chainlink Node operators for the retrieval of data from the external data sources, turning it to blockchain readable format, off-chain computation, and uptime guarantees.

What are the characteristics and benefits of tokens?

Some of the characteristics and benefits of tokens are: Utility: Tokens are necessary to use the decentralized applications (dApps) they are built for. Users can use tokens to pay for fees, perform actions, or receive benefits. Governance: Tokens can give users a voice in the decision-making process of the blockchain or dApp.

What's the difference between a bitcoin and a token?

Coins are frequently used in everyday transactions, like online shopping or sending someone cash. If someone sends you bitcoin, the blockchain facilitates an entry to increase your wallet and reduce the other person's balance, completing the transaction. On the other hand, tokens are not native to the blockchain they're operating on.

What does it mean if someone sends a token?

If you send someone a token, it "leaves" your account and moves to another person's account. This is why tokens can also signify ownership or facilitate exchanges in property, such as with "non-fungible" tokens. With NFTs, each token is like a "deed" that represents your claim to a particular piece of art or digital artifact.