What is Chainlink?

Chainlink is a decentralized oracle network that connects smart contracts with external data, addressing the limitations of blockchains in accessing real-world information. The platform utilizes a network of nodes that fetch, validate, and deliver data, allowing smart contracts to interact with verified information. Its services include Data Feeds for asset prices, cross-chain token transfers and messaging, smart contract automation, and asset collateralization verification.

Launched in 2017 by co-founders Sergey Nazarov and Steve Ellis, with Ari Juels contributing to the white paper, Chainlink raised $32 million during its initial coin offering. The LINK token serves as the native asset for compensating node operators, funding subscriptions, and incentivizing network security through staking. Node operators are required to stake LINK, which may be subjected to penalties if inaccurate data is supplied.