Chainlink Price Prediction

0 32

Written by

No bio yet...

3 years ago

What is chainlink?

blockchain one of the most touted inventions is the smart contract which is quite literally a piece of software written code that lives and executes on the blockchain in a decentralized manner. smart contracts have the ability to revolutionize processes like escrows asset transfers and etc, because of the pure deterministic logical method by which they issue funds and perform actions determinism means that given a certain criteria or input the result will be predictable and constant same it put in same output out in the context of an escrow, example the smart contract will distribute the escrowed funds when and only, when the conditions are met and will pay in full as the agreement states no single party within the agreement facilitated by a smart contract can simply choose to break the terms the code will govern what is allowed and what is not however there's a problem here because 99% of the time not every piece of information needed for the contract to make these critical decisions or measure the criteria for certain actions is on-chain and accessible at the time it needs it for this we need external data.

example if you want to set up an application that will deduct 5% penalties on a payout for produce shippers for every hour that the produce temperatures during transit rise above the target holding temperatures you need to feed the temperature sensor data into the contract somehow for the contract to do its job this external data feed to contracts is called an Oracle now a lot of hype is given to smart contracts but the reality is is that they aren't smart they only do what the developer tells them to do and the conditional logic can only execute with quality results when quality data is input through an Oracle in our example it's not as simple as making the shippers submit the data because as a single data Oracle there's incentive for them as the shipper to fake the data to avoid the penalties you then lose the core benefits of a smart contract the decentralization and the disintermediation by making the decisions and the criteria by which the data is processed unilateral and centralized the value was lost this is where chain link playing and this is where they're solving the problem at its core.

chainlink is designed to provide a trusted decentralized oracle infrastructure and framework for smart contracts on multiple block chains the goal is to provide reliable tamper proof inputs and outputs on multiple blockchain networks that can be used to build complex and valuable smart contract ecosystems chain link is led by CEO Sergey nazarov an experienced entrepreneur and Steve Ellis a software engineer who was formerly at pivotal labs in my opinion the team looks pretty darn solid and as someone who developed some our contracts for a living I think the concept behind chain link has a real value.