What is Chainlink? Chainlink is a decentralized Oracle network aimed at smart connect contracts with actual data. Chainlink was developed by Sergey Nazarov, with Steve Ellis as the co-founder. It held an ICO with $ 32 million in September 2017, with a total offer of 1 billion LINK tokens. LINK, the original cryptocurrency of the decentralized Oracle Chainlink network, is used to help node operators pay.
Because the Chainlink network has a reputation system, node providers with a large number of LINKs are rewarded with larger contracts, while the failure to provide accurate information, a sign subtraction results. The developers describe LINK as an ERC20 token, with the additional ERC223 transfer functionality of ‘transfer and call’ (address, uint256, bytes), which allow tokens are received and processed within one transaction via contracts. ‘
Following the $ 32 million ICO LINK in 2017, 32 percent of LINK tokens are sent to node operators to boost the ecosystem, and 30 percent remained within Chainlink for development (35 percent were sold in the public token sale).
What are oracles? Chainlink is a platform aimed at bridging the gap between smart contracts based on blockchain technology (distributed by Ethereum) and bridge real-world applications. Because blockchains do not have access to data outside their network, oracles (a defined tool) needed to function in smart contracts as data sources. In the case of Chainlink, the oracles are connected to the Ethereum network. Oracles provide external data (e.g. Temperature, weather) which causes smart contract executions when predetermined conditions are met.
Chainlink network participants are encouraged (through rewards) to smart contracts with access to external data sources such as API to provide information. If users want to access data outside the chain, they can create a submit contract with the Chainlink network. These contracts will correspond to the request to contract with the appropriate proverbs. The contracts include a reputation contract, an order matching contract and a total contract in. The merge contract collects data from the selected oracles to find the most accurate result.
ChainLink security services Thanks to the protocols we only described in the previous section, ChainLink proposes to guarantee availability and correctness in case of defective forums. Reliable hardware is also considered acting as a safe approach to protect against corrupt proverbs that provide incorrect answers.
However, reliable hardware does not provide the best protection for three reasons not. First, it will not be implemented in the initial versions of the ChainLink network. Second, some users may not trust trusted hardware. Finally, reliable hardware can not stop the node does not protect, but only against bad node behaviour. Therefore, users will want to ensure that they can choose the most reliable words and the likelihood that USER-SC will trust> reduce incorrect words.
To do this, we suggest using four key security services: a validation system,’ a reputation system, a certification service and a contract update service. All these services can initially be managed by a company or group that is interested to launch ChainLink but is designed to work strictly in accordance with ChainLink’s decentralized design philosophy. ChainLink’s proposed security services cannot participate in Do not block Oracle nodes or change Oracle responses.
Only the first three services offer user classes or guidance, while the Contract Update Service is fully optional for users. In addition, these services are designed to support providers whose participation should be encouraged so that users eventually end up from various security services can choose.
Using the LINK token The ChainLink network uses the LINK token to Pay ChainLink Node Operators for Off-Chain Data Recovery data sources, the data format in blockchain readable formats, off-chain computing and time guarantees for the activity they offer as operators.
For a smart contract on networks like Ethereum to use a ChainLink node, they need to the selected ChainLink Node Operator pays using LINK tokens, with the prices determined by the node operator based on the demand for the chain resource that their ChainLink provides, and the provision of other similar resources.
The LINK token is an ERC20 token, with additional ERC223 transfer “transfer and call” functionality (address, uint256, bytes), which allows characters within one transaction for contracts received and processed. Long-term technical strategy The long-term technical strategy for ChainLink that presented in this white paper contains three key directions: Oracle Confidentiality, infrastructure changes and off-chain computing.
Off-chain calculation Some interesting uses of oracles, such as the use of faith-dependent APIs requires an oracle to do much more than just sending data. You may need to manage credentials, log in to accounts to extract data, etc. In fact, given trustworthy and confidential words – something that SGX-supported systems and techniques like Town-Crier style like zero proof evidence can help reach – can the boundary between oracles and smart contracts become fluid.
ChainLink already supports a regex-based language for queries using users can flexibly process data outside the chain specify. However, our long-term strategy seeks to create a ‘world where oracles’ is an important computer resource outside the chain that is used by most smart contracts are used.
We believe this will be possible if it is built on a completely general, private computer model outside the chain inside oracles whose results by smart contracts are consumed. If it can be achieved with great security, as you think it can, the push of expensive and oracle-sensitive computational logic leads to better confidentiality, lower execution costs for contracts and more flexible architectures. Design principles.
As they continue their work at ChainLink, they seek the following prioritize core values: Decentralization for open and secure systems. Decentralization is not only the basis of blockchains’ toddler-resistant properties but the basis of their permissible nature. By continuing to build decentralized systems, our goal is to enable unauthorized development within the ecosystem.
We believe that decentralization is an important component for a thriving global ecosystem with long-term sustainability. Modularity for a simple and flexible system design. We appreciate the philosophy of building small tools that do one thing right. Simple components can be reasoned and therefore safe in larger systems to be combined. We believe that modularity not only allows for upgradeable systems but that it facilitates decentralization. Where the key pieces of ChainLink depend or too few parts are managed, we will try to design an ecosystem that allows the use of competitive enable implementations. Open source for secure and scalable systems.
ChainLink is made possible by relying on many open source projects. We value the community and will continue to contribute by developing ChainLink in open source. behaviour. We plan to constantly work with developers, academics and security experts in entering into the conversation for peer review. They encourage formal safety tests, audits and testing, all with the aim to create a platform whose robustness and security can support future innovations.
With these principles in mind, we hope the scope and impact of blockchains and smart expand contracts by making oracles a safe cornerstone of the ecosystem. Conclusion ChainLink, a decentralized Oracle network for smart contracts to communicate securely with resources outside the blockchain. We outlined the ChainLink architecture, which includes components within and described outside the chain.
After defining safety in the context of oracles, we describe ChainLink’s multilayered approach to decentralization. They proposed a new protocol with new features such as free upload protection (with additional protocols and safety evidence on the appendix).
We also offer a roadmap on how ChainLink can benefit from technology development and infrastructure, such as reliable hardware and the digital signature of source data. Finally, after researching the existing Oracle solutions and their shortcomings, today we the need for a system such as a ChainLink.
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