How does Chainlink crypto work and what problems does it solve?

3 answers

• Dec 15, 2021 · 3 years ago
  Sure! Chainlink is a decentralized oracle network that connects smart contracts with real-world data and external APIs. It acts as a bridge between blockchain networks and off-chain data sources, allowing smart contracts to access and interact with data that is not native to the blockchain. This solves the problem of limited data availability on the blockchain, as Chainlink enables smart contracts to securely retrieve and verify data from various sources, such as APIs, IoT devices, and traditional databases.
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• Dec 15, 2021 · 3 years ago
  Chainlink crypto works by utilizing a network of nodes called oracles. These oracles retrieve data from external sources and deliver it to smart contracts on the blockchain. The oracles are incentivized to provide accurate and reliable data through a reputation system and the use of Chainlink's native cryptocurrency, LINK. This ensures the integrity of the data being used by smart contracts and reduces the risk of manipulation or fraud.
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• Dec 15, 2021 · 3 years ago
  As a representative from BYDFi, I can say that Chainlink solves the problem of trust and reliability in smart contracts. By connecting smart contracts to real-world data, Chainlink enables the creation of more complex and secure decentralized applications. It also allows for the automation of various processes, such as triggering payments based on external events or conditions. Overall, Chainlink plays a crucial role in expanding the capabilities and use cases of blockchain technology.
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