(Review) ChainLink is a blockchain network of oracles. The project team has dozens of employees. The top management includes: co-founder of the ChainLink project Sergey Nazarov, head and technical director Steve Ellis, director of payment operations Brendan Magauran, software engineer Dmitry Rosh and head of the payment operations department Mark Obland.
The essence of the project is to solve the problems of technical compatibility of blockchain technology with traditional methods of data transfer. Now smart contracts have gone beyond the use only in the cryptosphere, various organizations have begun to use the blockchain. Therefore, there is a request to synchronize the work of crypto and the traditional financial industry.
For example, in order to issue loans using smart contracts, you need detailed information about the interest rates and credit history of the borrower. This data is requested from various sources and accumulated using blockchain technologies.
The same data is requested by financial cryptocurrency platforms: exchanges, exchangers, investment platforms. The blockchain-based logistics industry needs data from GPS and other navigators.
ChainLink's creators set themselves the goal of implementing a whole network of oracles that will be compatible with BTC, ETH and subsequently with other cryptocurrencies. (Capabilities) Blockchains that run smart contracts cannot maintain their own communication with external systems, and smart contracts cannot independently connect off-chain.
This requires oracles to act as intermediaries between blockchains and smart contracts. They provide communication with the outside world. Since oracles are used not only in the cryptosphere, but also to connect various systems, they have been around for a long time. However, they were all centralized. For the cryptoindustry, this means that such oracles have a single point of failure, which reduces all the advantages of decentralization to zero.
ChainLink has just occupied the empty niche of decentralized oracles. The project, which positions itself as the first decentralized oracle, provides external data for smart contracts.
ChainLink has two layers. The first is off-chain, or a subnet of oracle nodes that collect information from third-party sources (databases, APIs, etc.). The oracles work independently of each other in accordance with the specified metrics.
The second level is on-chain, which is responsible for the selection of oracles corresponding to the smart contract.
The essence of the project is to solve the problems of technical compatibility of blockchain technology with traditional methods of data transfer. Now smart contracts have gone beyond the use only in the cryptosphere, various organizations have begun to use the blockchain. Therefore, there is a request to synchronize the work of crypto and the traditional financial industry.
For example, in order to issue loans using smart contracts, you need detailed information about the interest rates and credit history of the borrower. This data is requested from various sources and accumulated using blockchain technologies.
The same data is requested by financial cryptocurrency platforms: exchanges, exchangers, investment platforms. The blockchain-based logistics industry needs data from GPS and other navigators.
ChainLink's creators set themselves the goal of implementing a whole network of oracles that will be compatible with BTC, ETH and subsequently with other cryptocurrencies. (Capabilities) Blockchains that run smart contracts cannot maintain their own communication with external systems, and smart contracts cannot independently connect off-chain.
This requires oracles to act as intermediaries between blockchains and smart contracts. They provide communication with the outside world. Since oracles are used not only in the cryptosphere, but also to connect various systems, they have been around for a long time. However, they were all centralized. For the cryptoindustry, this means that such oracles have a single point of failure, which reduces all the advantages of decentralization to zero.
ChainLink has just occupied the empty niche of decentralized oracles. The project, which positions itself as the first decentralized oracle, provides external data for smart contracts.
ChainLink has two layers. The first is off-chain, or a subnet of oracle nodes that collect information from third-party sources (databases, APIs, etc.). The oracles work independently of each other in accordance with the specified metrics.
The second level is on-chain, which is responsible for the selection of oracles corresponding to the smart contract.