What is Chainlink?

What is Chainlink?


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Chainlink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.

 

First of all : what is a Smart Contract?

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

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Crowdfunding is a great example of how a smart contract works: if a certain amount of Ether is deposited in a smart contract within a certain time limit, the payment will be released to the fundraiser, otherwise, the payment will be returned to the donors. Smart contracts are immutable (cannot be modified) and verifiable (everyone can see them) and will be executed if, and only if these parameters are met.

 

So, why ChainLink and why Oracles are so much important?

An oracle is known as ‘middleware’ that acts as an intermediary, translating data from the real world to smart contracts on the blockchain and back again.

A centralized oracle creates the problem of a decentralized, blockchain-secured smart contract aims to solve — a point of weakness. If the oracle is compromised, how would you know if your data is accurate?

As I told before, Chainlink is a network of nodes, providing information from off-blockchain to on-blockchain via ORACLES.

This process eliminates the reliability issues that might occur if using only a single centralized source.

Chainlink can generate multiple subcontracts, while also taking data from only the most trustworthy nodes and oracles for premium accuracy. Although there isn’t a cap on the number of smart contracts the platform can handle, there is a one billion LINK token limit.

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        As you know, I'm not an expert or something, I just want to explain WHAT I KNOW

  For major explanation about ChainLink and how Oracled works, visit HERE  

Thanks for reading :D

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BertRedd
BertRedd

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BertRedd Journey to the Moon !
BertRedd Journey to the Moon !

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