What is Chainlink?

Chainlink is a decentralized Oracle blockchain network built on Ethereum.

This network is used to facilitate the transfer of tamper-proof data from off-chain sources to on-chain smart contracts.

What problem does Chainlink solve?

The essence of the blockchain or smart contract is that the lines of code operate based on the “If-this, then-that” files (if this, the result will be that). They cannot interact with data and systems that exist outside of their native blockchain environment. This prevents the development of smart contracts with more diverse functions. Chainlink appears as a connector between the smart contract and the real outside world.

The operation of Chainlink

Oracle’s Choice

During this phase, Chainlink users draft a service level agreement (SLA), which is a commitment between a service provider and a customer using that service. This commitment does not stop at the quality aspect but also includes factors such as quantity, availability, supplier responsibility, etc., which are agreed with the customer.Then specify the set of data requirements you desire.

Users deposit their LINK cryptocurrency into an order matching contract that accepts bids from oracles as committed in the SLA.

Data report

The oracles connect to external sources and retrieve the real-world data required in the SLA. The data is then sent back to the contracts running on the Chainlink blockchain.

Summary of results

Check the results of the collected data and send them back to the aggregation contract.

The aggregate contract receives the responses, reviews them, and returns the score to Oracle, using the sum of all the data received.

Three types of intelligent contracts in Chainlink

The Chainlink blockchain is powered by three types of smart contracts.

Aggregate Contracts: Collect data from Oracles and compare the most accurate results with smart contracts.

Order Matching Contracts: Match service level agreements (SLAs) of smart contracts with contractors. reputable contract. The reputation of these Oracles is checked by their track record. This includes factors like the total number of completed requests, the average response time, and the amount of LINK cryptocurrency the oracle has staked.

Reputable contract: The reputation of these Oracles is checked by their track record. This includes factors like the total number of completed requests, the average response time, and the amount of LINK cryptocurrency the oracle has staked.

What is ChainLink Coin (LINK)?

ChainLink (ticker: LINK) is a token in the ChainLink decentralized Oracle network. released to the market via ICO at the end of 2017.

ChainLink (LINK) is running on the Ethereum Blockchain platform according to the ERC-677 standard.

What is ChainLink Coin used for?

The Oracles in the Chainlink network are required to provide accurate data because of the reputation points included in each Oracle. When nodes follow the software’s rules and provide useful data, they are rewarded with Chainlink’s cryptocurrency, LINK.

The LINK token is used to pay for nodes operating in Chainlink, and it is paid by the customer.

Nodes are made up of two components:

The Chainlink Core will read the SLAs for the Chainlink Adapter.

Chainlink Adapter: The adapter can read, process, and write data to the blockchain.

The future of Chainlink

Oracles as a whole play an important role in enabling the full potential of smart contract utilities. Smart contracts cannot effectively serve the real world without a reliable connection to real-world conditions.

Currently, ChainLink still has no competitors because ChainLink has created its own market. And it can be said that ChainLink’s development potential in the future is huge because it has properly addressed the needs of the current market and is led and developed by a team with extensive experience in the field. With the era of Web 3.0, the need to use Smart Contracts in businesses and dApps will increase in the future, leading to the need to buy LINK tokens to use ChainLink.

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