What is Chainlink?

Chainlink (LINK) is a decentralized oracle network that aims to bridge the gap between smart contracts on the blockchain and real-world data and events. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code, but they typically do not have access to external data sources on their own. Chainlink aims to solve this problem by providing a decentralized network of nodes that can securely and reliably connect smart contracts to real-world data feeds and APIs.

Chainlink nodes operate as independent oracles, which retrieve and verify data from external sources and deliver it to smart contracts on the blockchain. This allows smart contracts to be triggered by real-world events, such as changes in market prices, weather conditions, or sports scores, which can be used to trigger automated actions and payments.

One of the key benefits of Chainlink is its focus on security and reliability. The network uses a decentralized consensus mechanism to ensure that data is accurate and trustworthy, and it employs a system of incentives and penalties to encourage honest and reliable behavior by node operators.

Chainlink also offers a range of tools and services for developers, including a user-friendly interface for creating and deploying smart contracts, as well as APIs and developer tools for integrating external data sources and services.

The native cryptocurrency of the Chainlink network is called LINK, which is used to pay node operators for retrieving and verifying data, as well as to participate in the network's governance system. LINK is also used as collateral in the network's staking system, which helps to secure the network and maintain its integrity.

Overall, Chainlink is an innovative and promising project that has the potential to significantly improve the functionality and utility of smart contracts on the blockchain, by providing a reliable and secure connection to real-world data and events.

The article does not constitute financial advice.

Start with crypto today

Sign up on NBX, a trusted Norwegian cryptocurrency exchange and custodian, and kickstart your crypto journey safely.
Crypto 101
Explore the most popular crypto terms and find answers to your questions.

How to mine Ethereum?

Read

What is Ethereum?

Read

What does the "fiat money" term mean?

Read

What do the "bull" and "bear" terms mean?

Read

Can Bitcoin go to zero?

Read

What is a DApp?

Read

What is a Private Key?

Read

What is FOMO?

Read

How much shall you invest in cryptocurrency?

Read
Blog

Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.
#crypto101

Adoption of USDM in the Cardano community and NBX trade of USDM in Q4 2024

This article explores the growing adoption of USDM within the Cardano ecosystem and provides an update on NBX's plans to launch ADA/USDM trading now soon in Q4 2024.
2 minutes
2024-10-28
#crypto101

Women in the Cardano ecosystem

NBX takes a look at some of the women that makes the Cardano ecosystem.
2 minutes
2024-10-15
#crypto101

NBX ADA OCTOBER 9-16 TRADING COMPETITION WITH USDM PRIZES

NBX is launching USDM in Q4 2024 and our first event to celebrate this is an ADA trading competition with USDM prices.
2 minutes
2024-10-08
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.