Chainlink Developers WebinarEvent
Chainlink Developers Webinar hosted last week by Asia Blockchain Centre (ABC). Chainlink is a decentralised oracle network that now provides price data to DeFi protocols securing more than $2 billion in user value. You get to meet Patrick Collins from Chainlink.
To understand the benefits of ChainLink and how it functions, you need to understand some fundamental, interconnected concepts. Let’s start with smart contracts. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. Because smart contracts exist on a blockchain, they are immutable (can’t be changed) and verifiable (everyone can see them), guaranteeing a high level of trust among parties that they accurately reflect the stated parameters of the agreement and will execute if, and only if, those parameters are met. Smart contracts are immutable and verifiable contracts that automatically execute in an IF/THEN framework when conditions are met. The data that defines these conditions has traditionally come from the blockchain.
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 Aggregating Contract can repeat this validation process for multiple sources, then reconcile all validated data by averaging it into a single piece of data. Under certain circumstances, not all answers can be averaged but for simplicity’s sake we won’t go further into depth here. The Chainlink Reputation Contract considers the size of a node’s stake (among other criteria) when matching nodes with requests for data. Nodes with a greater stake are therefore more likely to be chosen to fulfill requests (and thus earn LINK for their services). The Chainlink network also punishes faulty or dishonest nodes by taxing their stake of LINK for poor service.
Missed out the live broadcast? Check out the full video here