What Is LINK (Chainlink)?
LINK (Chainlink) is a decentralized oracle network that provides real-time data to smart contracts on the blockchain. It enables developers to connect their smart contracts with external resources such as APIs, payment systems, and other off-chain services. LINK tokens are used by users of the Chainlink network to pay for access to its services. The token also serves as an incentive for node operators who provide reliable data feeds and secure connections between blockchains and off-chain applications.
The Chainlink platform consists of two main components: nodes and oracles. Nodes are responsible for providing secure connections between different networks while Oracles act as middlemen that collect information from outside sources like web APIs, databases, etc., then relay it back into the blockchain in a tamperproof manner so that it can be used by smart contracts. This allows developers to create more complex dApps than ever before without having to worry about security issues associated with connecting them directly with external sources of data.