The blockchain sector is facing a problem in communicating information to and from the blockchain. This task is known to be accomplished by oracles. Oracles work by providing the information to smart contracts and acting as a bridge to connect the world with blockchain services. Although oracles are a very reliable way to begin smart contracts, the problem with these is their centralization that makes these oracles the weakest spot of blockchain. The entire network will be at risk by the corruption in an oracle.
Chainlink here comes with the solution. It helps in implementing smart contracts by connecting the blockchain services with the real world. Chainlink creates the decentralized oracle network for blockchain that could leverage all the technologies found in blockchains to ensure data accuracy. Here, if one node gets corrupted, it will soon be replaced by a high ranked alternative. Thus, Chainlink assures its users that their data is correct and free from corruption.
Chainlink works by starting the process after a user requests a Requesting Contract for information. Followed by the listing, Chainlink Service Level Agreement (SLA) Contract will be created. It will further launch three other contracts in the system, namely, Chainlink Reputation Contract, Chainlink Order-Matching Contract, and Chainlink Aggregating Contract. Chainlink officials are continuously trying to update the platform with new launches.
Chainlink has a great hype in the market. It seems to be a worthy contestant because Chainlink provides developers with a higher level of flexibility and expands the blockchain’s functionality.