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.

What is Tether?

Read

How are cryptocurrency and NFTs taxed in Norway?

Read

What is phishing simulation and security awareness training?

Read

What is a DApp?

Read

What is Proof-of-Stake?

Read

What is Shiba Inu?

Read

Is Bitcoin a scam?

Read

What is USD Coin?

Read

What is staking?

Read
Blog

Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.
#crypto101

Litecoin: The Digital Silver Revolutionizing the Crypto Market

Discover why Litecoin (LTC) is the "digital silver" complementing Bitcoin and revolutionizing the crypto market. Uncover its unique features and attributes.
3 min
2023-06-09
#crypto101

The Remarkable History of Dogecoin: From Meme to Global Crypto Sensation

The history of Dogecoin is a testament to the power of community, humor, and collective enthusiasm within the cryptocurrency space. What started as a playful meme coin has evolved into a global sensation, embraced by a vibrant community that continues to push the boundaries of what a cryptocurrency can achieve.
4 min
2023-06-01
#crypto101

Everything You Need To Know About NFTs: A Comprehensive Guide

In recent years, the world of digital assets has undergone a revolutionary change with the emergence of Non-Fungible Tokens (NFTs). These unique tokens have captured the attention of artists, collectors, and investors alike.
10 min
2023-05-31
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.