Rank: 12
What is Chainlink?
ChainLink is a shared network of oracles supplying smart contracts on the blockchain with real-world data. Connect is the digital asset token used on the network to pay for services.
To validate its credibility and success background, the Chainlink Integrity Contract reviews the track record of an oracle supplier, then examines and discards disreputable or weak nodes.
The Chainlink Order-Matching Contract delivers the request of the Requesting Contract to Chainlink nodes and takes their offers on the request (when a particular collection of nodes is not selected by the Requesting Contract), then selects the correct amount and form of nodes to satisfy the request.
For an effective outcome, the Chainlink Aggregating Contract takes all the knowledge from the selected oracles and validates and/or reconciles it.
What are Chainlink Nodes?
Chainlink nodes take the data request from the Requesting Contract and use “Chainlink Core” tools to convert the request from the language of on-blockchain computing to an off-blockchain programming language that can be interpreted by a real-world data source.
This freshly interpreted version of the request is then forwarded to an external programming interface for the application (API) that gathers data from that source. After the data has been gathered, via Chainlink Heart, it is converted back into on-blockchain language and sent back to the Chainlink Aggregating Deal.
The Chainlink Aggregating Contract can verify details from several sources and from a common source, and can reconcile information from multiple sources.
The Chainlink Aggregating Contract would then realize that those two nodes are unreliable (or dishonest) and discard their responses if five nodes give one answer from a weather sensor and two other nodes provide a different answer. Chainlink nodes can verify data from a single source in this way.\
For multiple databases, the Chainlink Aggregating Contract will replicate this validation process, then reconcile all verified data by averaging it into a single piece of evidence. In such conditions, not all replies can be averaged, so we would not go more in detail here for simplicity’s sake.
Aside from the data source, Chainlink has provided a way to provide smart contracts on smart-contract powered blockchains with reliable data accurately and efficiently.
What does the LINK token do?
Keepers of contract demands use Connect to compensate operators of Chainlink nodes for their jobs. The Chainlink node operator determines rates depending on the need for the data they will supply and the existing competition for such data.
Chainlink node operators also use LINK to engage in the network. Node operators must deposit LINK with Chainlink to prove their network dedication and promote good support.
When matching nodes with requests for data, the Chainlink Credibility Contract considers the size of a node’s stake (among other criteria). Therefore, nodes with a higher stake are more likely to be selected to cooperate with requests (and thus earn LINK for their services).
Through charging their share of Connection for bad service, the Chainlink network often punishes faulty or deceptive nodes.
In keeping with the ERC20 token standard, Connection is developed on Ethereum. It is eligible for buying and selling in fiat currency or other digital currencies.
