What is Chainlink?
Chainlink is a decentralized oracle network that provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.
It connects smart contracts to external data sources, APIs, and payment systems in order to facilitate the exchange of information between them. Chainlink was created to bridge the gap between blockchain technology and real-world applications. By providing secure and reliable access to off-chain data, Chainlink enables developers to create more powerful and sophisticated smart contracts that can interact with the real world.
This opens up a whole new world of possibilities for blockchain applications, such as insurance contracts that pay out automatically when certain conditions are met, or financial derivatives that are triggered by changes in market prices. The Chainlink network consists of two main components: on-chain components (oracles) and off-chain components (adapters). Oracles are responsible for retrieving data from external sources and formatting it into a format that can be understood by smart contracts.
Adapters are responsible for translating this data into a format that can be used by the oracles. Together, these two components provide a secure connection between external data sources and smart contracts on any blockchain platform.
