#ChainlinkUpdate
Chainlink is a decentralized oracle network that acts as a secure bridge, connecting blockchains (smart contracts) to real-world data and off-chain systems, solving the "oracle problem" by delivering verified external information like prices, weather, or events to the blockchain for advanced applications, with its native LINK token facilitating payments and network security. It's the industry-standard infrastructure powering decentralized finance (DeFi), tokenization, and various hybrid smart contracts, enabling them to interact with the broader digital and traditional world.
Key Functions & Concepts:
Decentralized Oracles: A network of independent computers (oracles) gather data from off-chain sources, verify it, and securely deliver it to smart contracts, eliminating single points of failure.
The Oracle Problem: Blockchains are isolated; they can't inherently access external information. Chainlink solves this by bringing that data on-chain.
LINK Token: Used to pay for data services, rewarding node operators for accurate data provision and securing the network through staking.
Hybrid Smart Contracts: Combines on-chain code with off-chain data/computation, making complex applications possible.
Interoperability: Connects different blockchains and traditional enterprise systems, allowing seamless communication and asset movement.
