summary: Chainlink is a decentralized oracle network that brings off-chain data into an on-chain format across Web2 and Web3.
content: Chainlink is a decentralized oracle network that brings off-chain data into an on-chain format, bridging the gap between the isolated blockchain and real-world data. Chainlink was developed by Chainlink Labs (formerly Smart Contract Ltd.) and founded In September 2014 by Sergey Nazarov and Steve Ellis. It currently supports not only Ethereum, but also additional blockchains and layer 2 networks such as Polygon, BNB Chain, Avalanche, and Arbitrum. LINK is the native token of the protocol, which is secured by a proof-of-stake (PoS) consensus mechanism. On September 19, 2017, Chainlink raised USD 32,000,000 by selling over 350 million LINK tokens in an ICO (initial coin offering). Chainlink has partnered with various mainstream organizations like AccuWeather, FedEx, FlightStats, and the Associated Press. On October 21, 2021, The Associated Press partnered with Chainlink to make its trusted economic, sports and race call datasets available to leading blockchains. Also, IQ.wiki formerly Everipedia in partnership with the Associated Press, using the Chainlink infrastructure, published the results of the 2020 U.S. Presidential Elections onto the blockchain for the first time. On June 7, 2022, Chainlink Protocol announced information about its long-term objectives and new roadmap, which will usher in the "Chainlink Economics 2.0" era for the network. Chainlink will finally roll out staking for LINK holders to secure the network and earn rewards. As of 2022, the Chainlink ecosystem presently has access to over 1 billion data points and manages over $75 billion in value through integrations with 1,000 projects across 700 oracle networks. Overview Chainlink is a decentralized oracle network that feeds a stream of data to smart contracts running on several blockchains. Its goal is to make smart contracts even more powerful by allowing them to use variable data from other sources. Through Chainlink oracles, smart contracts can pull data from off-chain sources and bring it onto the blockchain. The innovative concept introduces new ways for smart contracts to be used. Prediction markets are just one example of how aggregating knowledge on-chain from trusted sources can add value to smart contracts while removing middlemen and uprooting traditional markets. Since blockchains are generally intended to operate as a “trustless” Network, using outside data requires integrating with a trusted source – an “oracle.” Through decentralization, the Chainlink network can verífy oracle integrity, order match, and aggregate results to ensure that all data being sourced is valid. Chainlink is designed to be modular and flexible and even allows smart contracts to be upgraded through a migration function. Oracles Oracles allow blockchains to access data outside of their network. They find and verify real-world occurrences through trusted sources, submitting the information to a blockchain to be used in smart contracts. The oracle provides external data that is necessary to execute pre-defined conditions within smart contracts. !61277245f4962c179dcab303_Hybrid Smart Contract.pngChainlink developed an intricate framework to approach the difficult task of determining whether or not an oracle is trustworthy. Oracles must be reliable because smart contracts may be self-executing based on certain conditions. If inaccurate data is supplied, the smart contract could execute the wrong function. Use Cases DeFi Anyone can build a Defi app using Chainlink. It is the industry standard oracle network for DeFi. A decentralized finance ecosystem can be powered using Chainlink Decentralized Oracle Networks. !615d62fb71e7cb07e8e3c151_defi-diagrams_money-markets.pngChainlink is decentralized and secure since it is powered by node operators running security-audited software that has been rigorously validated. It is resistant to manipulation and provides its users with high-quality data sourced from multiple premium, authenticated APIs that are aggregated into a final validated answer. Chainlink also connects hybrid smart contracts with high-quality data and off-chain computation which it uses to help secure tens of billions of dollars within the DeFi ecosystem. Chainlink offers a diverse range of decentralized services and Rapid integration and deployment of advanced DeFi applications. Some of its Integrated applications include: Aave Compound Synthetix Paxos Truefi Nexus Mutual ENS Enterprise Chainlink is the industry standard middleware for connecting enterprises to the blockchain economy. Its oracle infrastructure enables organizations to securely and easily connect their existing systems to all major blockchain networks. Enterprises can now use Chainlink to generate new revenue streams by operating critical smart contract infrastructure in the form of a Chainlink node, providing hybrid smart contracts access to a secure source of real-world data and off-chain computation. !61c31f48d7e2b1708e2854c7_enterprise-diagram-v2.pngIt also gives these enterprises access to the blockchain economy by enabling its systems to read data from and write data to smart contracts, helping businesses securely digitize existing workflows, mitigate counterparty risk, and reduce intermediary overhead. Examples of these enterprises using chainlink include LexisNexis, Swisscom, AccuWeather, and The Associated Press. Insurance Chainlink can also be used to power the next generation of blockchain-enabled insurance. Its Decentralized Oracle Networks securely provides blockchain-based insurance products access to real-world data and off-chain computation. Chainlink can be used to design secure parametric insurance products/applications, help developers to monetize their data by selling it to blockchain-based insurance projects. NFTs and blockchain games Chainlink also supports the integration of NFT and blockchain gaming projects. Its oracles power top NFT and gaming applications across the blockchain ecosystem, helping dApps provide users with dynamic and provably fair gameplay. Users can confirm that their rare and unique digital assets are unique by using Chainlink to ensure that NFT minting, distribution, and trait assignment are done in a provably secure manner. It also brings secure entropy to blockchain games to randomize in-game parameters. !61b86eaa8940c7e60310e081_nft-gaming_nft-minting.pngA tamper-proof source of on-chain randomization is provided by Chainlink, enabling an infinite variety of voting procedures to meet the requirements of DAOs for fair decision-making in governance. Social Impact Chainlink helps promote blockchain innovations to bring about great social change. Through Chainlink, organizations, NGOs, businesses, and other institutions with a social conscience can harness the potential of smart contracts to advance financial inclusion, environmental sustainability, and the common good. Climate Markets Chainlink is known for being the industry standard for on-chain climate data, which it offers to its users. Enterprise-grade middleware, provided by the Chainlink Network, enables high-integrity, interoperable, and effective climate markets. The Chainlink Network connects carbon markets and helps bring transparency to the measuring and tracking of climate commitments. Chainlink Token (LINK) The LINK token is an ERC-20 token, with the additional ERC223 “transfer and call” functionality of transfer (address, uint256, bytes), allowing tokens to be received and processed by contracts within a single transaction. To compensate for the off-chain needs of the Chainlink system, the LINK token has been established as the currency of choice to pay Node Operators. According to the developers, the LINK token is required to perform this function, with the demand and value of the tokens being directly correlated to the number of operators that offer off-chain services to the system. As LINK tokens are used as a currency on the Chainlink platform, the more usage the Chainlink platform has, the more valuable LINK tokens should be. !Token-Sale-Terms-1.jpg The LINK token has a total supply of 1,000,000,000 LINK tokens. Token Distribution The initial coin offering (ICO) took place in September 2017 and a total of 350 million LINK tokens were sold to investors at $0.11 per token. 35% of the total token supply will go towards node operators and the incentivization of the ecosystem. Another 35% of LINK tokens were distributed during public sale events. Lastly, the remaining 30% of the total token supply was directed towards the company for the continued development of the Chainlink ecosystem and network. Uses Internal Payment This is the currency used to pay the Chainlink node operators for their work. Staking Chainlink node operators have to stake in the network to participate and provide data services. Nodes with higher stakes have a higher chance of getting selected to provide the requested data. Ecosystem A large open-source community of data producers, node operators, smart contract developers, researchers, security auditors, and other professionals powers Chainlink Ecosystem. Data Providers Data providers sell their existing data and API services to the most widely used oracle networks, quickly expanding their business model into the emerging smart contract economy with minimal costs. Data providers can monetize their current infrastructure and concentrate entirely on delivering high-quality data since Chainlink takes away all the difficulties associated with managing nodes and processing cryptocurrency payments. Node Operators At the core of the Chainlink, Network is the