Chainlink's Oracle Infrastructure: Solving Smart Contract Challenges

Chainlink's (LINK) infrastructure provides essential services for smart contracts, including data from external sources and cross-network communication. This is achieved through oracles, which enable contracts to access information from the external world.

The problem that oracles solve is the inability of a contract to inherently know the price of an asset on exchanges. For example, a lending application may need a price feed to calculate the dollar value of collateral.

Chainlink's services and the market value of the LINK token are separate matters. An application using Chainlink may not require all users to hold LINK.