A Simple Introduction to Chainlink

What is Chainlink (LINK)?

  • Designed to connect smart contracts to the outside world
  • Use of the “Oracle” which serves as a bridge between data from the outside world into the blockchain
  • Smart contracts = Decentralized, However Data = Centralized
  • Aims to build a decentralized oracle network
  • Data can include market data, events data, weather data, payment data, retail payments, backend system data etc…
  • Gathers data from a network of data sources (e.g. if it’s weather data, it takes weather data from multiple weather sources like weathernetwork, yahoo weather etc…) and creates a consensus of the data sources in order to output into a smart contract

Link Token

  • Use to pay node operators for retrieving data for smart contracts
  • + Deposits made by node operators by contract creators (used as insurance to ensure that the operators’ data are available)

Pros:

  • First mover advantage: first oracle network
  • Open source
  • Big partnerships: Google, Oracle

Cons:

  • Adoption is uncertain
  • Value of Link

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Ricky Young

My belief is that financial freedom can only be achieved through a combination of smart investing and passive income. This is my journey to achieve financial freedom.

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