Chainlink
What is Chainlink?
ChainLink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. LINK is the digital asset token used to pay for services on the network.
Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met.
ChainLink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.
The Chainlink protocol registers this request as an ‘event’ and in turn creates a corresponding smart contract (Chainlink Service Level Agreement (SLA) Contract), also on the blockchain, to get this off-chain data. The Chainlink SLA Contract generates three sub-contracts: a Chainlink Reputation Contract, a Chainlink Order-Matching Contract, and a Chainlink Aggregating Contract.
Key elements of Chainlink include:
1. Oracle Selection — First, Chainlink users draft a service-level agreement (SLA) that specifies a set of desired data requirements. The software then uses the SLA to match the user with oracles that can provide the data. Once the parameters are set, the user submits the SLA and deposits their LINK cryptocurrency in an Order-Matching contract, which accepts bids from oracles.
2. Data Reporting — This is where the oracles connect with external sources and obtain the real-world data requested in the SLA. The data is then processed by the oracles and sent back to contracts running on the Chainlink blockchain.
3. Result in Aggregation — The last step involves tallying the results of the data oracles collect and return it to an Aggregation contract. The Aggregation contract takes the responses, assesses the validity of each, and returns a weighted score, using the sum of all the data received, to the user.
BuyUcoin is an exchange that provides buying and to Sell Chainlink in India as well as other cryptocurrencies.
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