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Chainlink Overview

Created By : Admin

 What are Node Operators?

 

 Node operators are the backbone of the Chainlink network. They wait for data requests from smart contracts then go retrieve data from an external source such as an API. Once they have retrieved said data they can go on-chain and report this information to a smart contract. Nodes do not depend on one another. A node can choose to be part of a variety of networks or even run independently if they so choose. Networks can restrict individual nodes from operating in their network and choose how data is accumulated and obtained.               

                             

 Node Requirements

There are several things required to operate as a chainlink node.

 

Chanlink Software is open source software ran by nodes to bridge off-chain and on-chain environments 

 

 Oracle on chain smart contract detects any data requests from provides a response towards the smart contract requesting said data.

 

Data Source Subscriptions are the APIs that oracles rely on for data fetched for a smart contract. 

 

External monitoring systems keep an eye on the accuracy and performance of nodes in real-time.


 

                                    Node Reputation

Everything that occurs in the network is documented. Responses and requests are recorded on the chain and are transparent for anyone to observe. Statistics on these actions can provide insight into the performance, accuracy, and reliability of any node operators and even the network as a whole.  This allows for reputations to be built and incentivizes nodes to be more reliable.


 

               Chainlink Use Cases

Chainlink currently secures billions of dollars across Defi and several other facets of the crypto world. There are a multitude of oracle services that are provided by networks or even individual nodes in the chainlink system and with the number of nodes growing everyday the network’s data pool grows larger. Here are examples of some use cases for chainlink data.

 

  • Price feeds
  • VRF for gaming 
  • Connecting off chain bank payments
  • IoT sensors.

 

Chainlink also gives developers the tools to make their own oracle network so as to not limit the types of data that can be acquired from oracle networks. So realistically there is no limit to the possibilities available with Chainlink.

                  

Closing remarks

Chainlink is an innovator in the crypto world and the system they have set in place is a step forward in the complete decentralization of data and a major leap in the right direction for crypto due to the number of vulnerabilities that will be avoided in the future with this technology. Good tech requires good data and for the crypto sector to succeed there has to be both. Chainlink is an integral piece in that decentralized puzzle.