ChainLink serves as a general bi-directional computer-enabled connector that connects the online and offline systems.
David Miller, a ChainLink Community Factsheet coordinator, expresses that Chainlink IS NOT a new blockchain, it’s not even meant to be a cryptocurrency.
Further stated that smart contracted blockchains do have the power to run certain actions under certain inputs, however by definition – he clarifies that blockchains are not able to connect to the real world.
Therefore, to unleash the full power of smart contracts, it is important to have a way to connect to the outside world. These are known as Oracles. Typical oracles have been 3rd party corps that offered that info via APIs.
When it comes to clarifying the question of “The Oracle Problem,” it stated that ETH, Tezos, or others make use of a centralized ORACLE, which breaks the whole paradigm.
This is known as the “The oracle problem.” Chainlink resolves this oracle problem in a decentralized way. Also, “It’s blockchain agnostic = all blockchains can use it to feed inputs.”
Sydney Ifergan, the crypto expert, tweeted: “ChainLink (LINK) has been facilitating sustainable price feeds for the oracle, thus empowering the growth of blockchain DeFi applications.”
Chainlink clarifies that Link is not a cryptocurrency. Further states that it is not created to be spent anywhere; however, it does have value.
The Link tokens were created to make use of the oracle network. The Link is further used to pay for the nodes which process the transactions. Thus, Link acts as an incentive to provide access to data.
ChainLink (LINK) Token-Powered Digital Interchange
ChainLink News recently announced the launch of the Interwork Alliance, which is “a platform-neutral, non-profit organization dedicated to creating the business-level standards and tools needed to build distributed applications.”
The Interwork Alliance have formally launched their operations as a platform-neutral, non-profit organization who focus on creating the standards frameworks required to improve innovation across the token-enabled ecosystems.
It is expected that this alliance will simplify the world of the Token-Powered Digital Interchange.
Secure and transparent price determination is crucial for exchanges to ensure true decentralization. Chainlink is providing the technology required to empower the same.
They are progressively working on their algorithms to provide the best quality data to ensure price transparency and authenticity. ChainLink, in reality, is writing the pages of authenticity and reliability in terms of price data feeds, which is obvious from the growing numbers of clients who subscribe to their price feeds.
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