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Sunday, December 5, 2021

Chainlink is a Decentralized Oracle Network

Lets learn about Chainlink,a decentralized network of oracles thatconnect Blockchains to real-world data. Chainlink is an Ethereum-basedproject with multi-chain support. The primary purpose of ChainLinkis to make real-world data,events, and payments information availableto smart contracts on any Blockchain. Chainlink network supports many price feeds,securing billions in value for manyleading applications and companies. However, the Chainlink Network canreliably deliver data from any API,for example viewership dataas a service to Theta.tv.

As the project evolved, Chainlinkspurpose has expanded to offer smartcontracts with highly scalable, confidential,and secure off-chain computation resources. The Chainlink network now also acts asa secure off-chain computation layer. It partly relies on Blockchains for security,yet also operates with the connectivityand scalability of off-chain systems. Sergey Nazarov, CEO of ChainlinkLabs, founded Chainlink and Chainlink Labs is responsiblefor overseeing its development. The LINK token is the currency that is usedfor all payments on the Chainlink network,as well as for staking by node operators.

Staking LINK tokens is reallyimportant for network health,because parts of the Chainlink networkoperate outside the bounds of the Blockchain. This means that nodes servingoff-chain data could act dishonestly. The staking features of Chainlinkattack this problem head-on. Dishonest nodes will not only be ignoredfrom serving future data requests,they will also be taxed on the staked tokens.

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This incentivizes nodes to act honestly and servehigh quality data to enhance their reputation. As the stake and reputation increases, it becomesmore likely to be selected for datarequests and earn token rewards. Learn more about Chainlink in our videoThe Blockchains of Ready Player One. Youre watching the video channel of MarketSquare,the new homepage for the decentralized Web.

Read More: What The Next Price For ChainLink?

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