Have you ever thought about how real-world data transfers in the blockchain? Or which technology the blockchain ecosystem is using the backend to transfer all of the data from the real world to the blockchain world? It is the same these questions have been triggered in your mind so yes this article is going to help you. Well, there is a technology known as "Chainlink" that acts as a bridge between real-world data and the blockchain network. Chainlink is the combination of various nodes that fetch real-world data from different resources and then shift all the data into the blockchain. To perform each task on the chainlink network, its native token "LINK" token is used. Well, in this article In this article, we will delve deeper into "What Is Chainlink? Oracles, Nodes and LINK Tokens" so without taking more time let's get started!
What Is Chainlink? Oracles, Nodes, and LINK Tokens
A decentralized oracle network called Chainlink seeks to gather real-time data from various sources and then deliver it to the blockchain network. It enables smart contracts to engage with external off-chain data resources (such as weather data, IoT devices, and financial market data) to fetch real-time data and aids in providing secure and dependable access to off-chain data and APIs for smart contracts. In simple words, the purpose to design the chainlink is to help the smart contract access the data that reside outside of the blockchain network. We can also say that chainlink is act like a bridge between smart contracts and real-world data.
Chainlink accomplishes this through the use of various nodes, which are in charge of gathering data from various sources and delivering it to the smart contracts of various blockchains. Additionally, it guarantees that the data is true, precise, and unchangeable. Chainlink's ability to address the "oracle problem," which involves concerns about data accuracy and trust in smart contracts, is a major factor in its popularity.
Chainlink's nodes are run by independent operators who are responsible to provide accurate data and in return for the services they provided are rewarded with LINK tokens. The LINK tokens are the native cryptocurrency of the Chainlink network as well as LINK tokens can also be used to pay for various services on the Chainlink network or they can be traded on various cryptocurrency exchanges such as; such as Binance, Coinbase Pro, Kraken, Huobi Global, Bitfinex, Bithumb, Gemini, OKEx, Upbit, and KuCoin.
To sum up, Chainlink enables the smart contract to obtain off-chain info in a trustworthy and secure manner. Smart contracts constantly request Chainlink nodes by sending various request parameters, and Chainlink employs various nodes to perform this functionality. When processing requests, Chainlink nodes obtain the necessary information, and then they transmit it back to a smart contract. It always functions as a decentralized network, and you need "LINK" tokens (the chainlink network's native currency) to carry out a variety of tasks. Additionally, these nodes provide temper-free data by maintaining the integrity and securing data using various cryptographic methods like encryption.