Smart Contracts are a major part of the blockchain that helps automate the execution of functions when set conditions are met. However, its functionality was ultimately limited due to one major drawback: lack of access to real-world data. This limitation was solved with the launch of Chainlink, a decentralized oracle network that connects smart contracts with off-chain data sources. In this article, we’ll discuss Chainlink, its history, use cases, and its workings.
What is Chainlink?
Chainlink can be described as a decentralized platform that operates on the Oracle network. It links smart contracts to the real world through nodes that gather data from off-chain sources. This improves the functionality of smart contracts, allowing them to engage with real-world events such as payments, booking services, and more while maintaining security and reliability. In addition to real-time data, Chainlink also involves off-chain computing and cross-chain interoperability, making it suitable for dApps that must get data from sources beyond the blockchain. LINK is used in Chainlink as a means of payment, most especially to the node operators that provide the off-chain data and services provided on the blockchain system.
History of Chainlink
The platform is based on the Ethereum blockchain, and its blockchain-agnostic architecture can support various blockchains. Because of its design, Chainlink is also capable of delivering real-world data feeds to various DeFi projects present in various blockchain platforms while maintaining the same level of security as the Ethereum blockchain.
Use Cases and Features
On the Chainlink platform, smart contracts can receive real-world data thanks to the oracle network, which provides a reliable and secure connection between blockchain and off-chain data sources. This unique capability allows smart contracts to participate in events occurring outside the blockchain, such as weather forecasting, sports events, election results, and more.
Chainlink offers unique opportunities for integrating real-world data into smart contracts, significantly expanding their functionality and applications. Based on the Ethereum blockchain, the platform maintains a high level of security and is an important element in the development of the DeFi ecosystem.
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