What Exactly Is Chainlink? (LINK)

Chainlink (LINK) is a decentralized oracle network that aims to connect smart contracts with data from the real world. LINK is the native cryptocurrency known as Chainlink, a decentralized oracle network used to pay node operators. Since the Chainlink network has a reputation system, node providers with a significant LINK can be rewarded larger contracts. At the same time, a failure to deliver accurate information results in a deduction of tokens.

What Are Oracles?

Since blockchains cannot access data outside their network, oracles (a DeFi instrument) are needed to function as data feeds in smart contracts. In Chainlink’s case, the oracles connect to the Ethereum network. Oracles provide external data (e.g., temperature, weather) that trigger smart contract executions upon fulfilling predefined conditions. Participants on the Chainlink network earn rewards to provide smart contracts with external data feeds like API information. Should users desire access to off-chain data, they can submit a requesting contract to Chainlink’s network. These contracts will match the requesting contract with the appropriate oracles. The agreements include a reputation contract, an order-matching contract, and an aggregating contract. The aggregating contract gathers data of the selected oracles to find the most accurate result.

Where Can I Buy Chainlink Tokens?

CHAINLINK
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