Chainlink is a decentralized network of oracles consisting of buyers and data providers. Buyers request data, and suppliers supply it. The ChainLink was released at the end of 2017 by the American blockchain startup Smartcontrast, specializing in smart contracts and their application in real life.
However, unlike the well-known Ethereum and NEO, ChainLink operates on the basis of "oracles", smart software that forms a secure channel for the execution of a smart contract. This is a publication from company cryptodefix. This channel allows you to exchange data, according to the conditions specified in the contract. In simple terms, the oracle creates an "information network" between businesses or people. Such a network excludes interaction with intermediaries, therefore can be considered as decentralized and cannot be regulated by anyone.
Data buyers select the specific data they want, and suppliers provide only that data. For the sake of additional security, data providers block a certain share of Link tokens when they publish a data supply offer. Thus, these tokens can be confiscated in case of unfair behavior of the supplier. At the same time, Chainlink uses the oracle reputation system to collect and evaluate the data provided. Hence, in case when everything goes right, the suppliers get their payment.
Chainlink special characteristics:
- LINK lines are used to pay data providers, project node operators, payment providers, and other online service providers.
- The Chainlink network uses the ERC677 token, which almost exactly takes over the functionality from the standard ERC-20 token.
- Both independent developers and large companies can deal with the purchase and sale of data.
- ChainLink supports Ethereum, Bitcoin, and Hyperledger.