A method of applying a wear resistant surface to chain links and pins of a chain by the application of an electroless nickel coating containing hard particles. The coating reduces the friction on the chain links and associated chain components, such as pins, bushings, rockers and other components. The hard particles contained in the coating may be a carbide or nitride formed using the following elements: silicon, boron, chromium or vanadium. The coating may contain a combination of carbide or nitrides. The hard particles may additional include natural diamond and/or synthetic diamond like carbon (DLC) particles.