Chainlink (LINK)

Chainlink is a decentralized network of independent oracle node operators.

How can a smart contract get data from the outside world? That's the problem that Oracles solve. They act as middleware between smart contracts and external sources of data.

Software Oracles handle data that originates from online sources e.g. temperature, prices of commodities and goods, flight delays. Hardware Oracles get data from the physical world (e.g. from IoT devices) and are popular in the supply chain industry.

Inbound Oracles provide data from the external world to the blockchain while Outbound Oracles enable smart contracts to send data to the outside world.

Consensus-based Oracles get their data from human consensus and prediction markets e.g. Augur, Gnosis, etc.

Chainlink is a decentralized network of independent oracle node operators. It provides:

  • price feeds of financial market data,
  • verifiable randomness that is needed for on-chain gaming,
  • proof of reserve for asset-backed cryptos such as stablecoins.

Chainlink is NOT a blockchain.

Each Chainlink oracle network comprises multiple independent oracle nodes. These nodes fetch data from multiple independent data providers. This data is then aggregated into a single data point and delivered "on-chain" for consumption by smart contracts.

LINK is the crypto token that is used for paying Chainlink node operators for providing oracle services.

Consensus mechanism: LINK is an ERC-20 token.

Wallets

The popular wallets include Trust Wallet and Metamask.

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