Last Updated on December 17, 2021
Chainlink is a decentralized network of nodes launched on the Ethereum blockchain that power the network through decentralized data providers called oracles. It provides real-world data from third-party sources to on-blockchain smart contracts through the oracles. Its native ERC-20 token (LINK) is rewarded to oracles who provide accurate data.
Chainlink runs on different blockchains simultaneously. In this way, it enables external blockchain, such as API integration, in exchange for data feeds. The use of smart contracts allows Chainlink to access not only real-world data but also payments and events, all without sacrificing security.
The Chainlink platform is able to connect cryptocurrencies and the banking segment. With Chainlink’s help, it is now possible to use smart contracts in the traditional financial system. From a technical point of view, Chainlink presents software using an API for cryptocurrency contracts.
Chainlink is a network, whereas LINK is the native token used to incentivize nodes to complete a request. The token used depends upon the ERC-20 protocol to facilitate seamless interaction with one another.
Use decentralization, trusted nodes, premium data, and cryptographic proofs to connect highly accurate and available data/APIs to any smart contract. Use a decentralized network of Chainlink Keeper nodes to automate contracts, mitigating risk of manual interventions and centralized servers.