Chainlink Connects Smart Contracts to Real-World Data

Chainlink is an oracle network that connects smart contracts to real-world data. This gap was identified by its creators, who recognized that blockchains are closed systems and cannot access external information on their own.

The Chainlink network uses a decentralized approach to provide accurate and reliable data feeds to smart contracts. Premium data providers collect raw price data from multiple exchanges, which is then aggregated by independent Chainlink nodes and published on-chain for use by smart contracts.

This process ensures that the data is tamper-proof and secure, reducing the risk of manipulation or exploitation. Chainlink's product stack includes a range of tools and protocols, such as the Cross-Chain Interoperability Protocol (CCIP) and the Chainlink Runtime Environment (CRE), which enable seamless interaction between different blockchains.

The LINK token is used to pay for services provided by node operators and data providers, with holders able to stake their tokens to help secure the network. The project's economics page reports that there are currently 748 million+ LINK in circulation, with a total supply capped at 1 billion.