Chainlink is a blockchain-based cryptocurrency network that provides a link between real world data and smart contracts. It also offers a tradable cryptocurrency token called LINK, which is used to pay for smart contract transactions on the Chainlink network. LINK tokens also hold their own relevant value in comparison to fiat currencies. The platform helps carry out smart contracts, which are blockchain agreements that automatically complete upon the filling of necessary preconditions. Chainlink helps oracles, or outside data sources, to act as liaisons between themselves and the blockchain. Investing in cryptocurrency can be confusing, so consider working with a local financial advisor.
What Is Chainlink?
Chainlink is a decentralized, blockchain network that helps bridge the gap between oracles that send real world data and smart contracts that exist on the blockchain. While using individual oracles to gather this data for smart contracts technically defeats the purpose of a decentralized blockchain, it’s attempting to solve this problem by instead decentralizing the system that uses individual oracles and APIs to gather and verify the data that’s relevant to these contracts.
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,