- Linking Chains
Chainlink is a decentralized oracle network that connects smart contracts, such as those on Ethereum, to data outside the platform. Blockchains can’t bind to external applications securely.
Intelligent contracts can communicate with outside data using Chainlink’s decentralized oracles, allowing them to be executed based on data that Ethereum itself cannot bind to.
A variety of use cases for Chainlink’s framework are detailed on the company’s blog. One of the many applications mentioned is monitoring water sources for contamination or illegal siphoning in specific cities. Sensors may be installed to monitor corporate use, water tables, and local water levels. This data could be tracked by a Chainlink oracle and fed directly into a smart contract. The smart contract could be set up to issue fines, issue flood warnings to cities, or invoice businesses using blockchain technology.
Sergey Nazarov and Steve Ellis collaborated on Chainlink. Chainlink’s market capitalization is $8.6 billion as of January 2021, and one LINK is worth $21.53.