Chainlink - the glue that binds blockchain & the physical world

Let's keep it simple.

Read that name again.

(Block)chain link is the link that binds any blockchain's smart contract to the physical world data.

What are oracles?
Third-party (google or Bloomberg for eg) or
decentralized data feed services (prices of ethereum/ bitcoin)
that provide external data ( decentralized sports betting requires sports data)
/ off-chain data it onto the blockchain.

Chainlink is an oracle network.

Why is chainlink important?
As always in crypto - because of the problem they are solving

"The blockchain oracle problem is one of the most important barriers to overcome to enable smart contracts on networks like Ethereum to achieve mass adoption across a wide variety of markets and use cases."

Blockchains cannot pull in or push data to external systems

The true potential of blockchain lies in the outer world. The real world.

There are several such use cases now enabled by Chainlink:
https://blog.chain.link/44-ways-to-enhance-your-smart-contract-with-chainlink/

A short clip from Sergey (Co-Founder of Chainlink) explaining the true potential of smart contracts that Chainlink can unlock.

The technology is indeed revolutionary.

The problem? -
https://blog.chain.link/what-is-the-blockchain-oracle-problem/

blockchains cannot pull in data from or push data out to any external system as built-in functionality. Blockchains are isolated networks & very similar to a computer with no Internet connection.

The isolation of a blockchain is the precise property that makes it extremely secure and reliable.

did the public key holder sign the transaction with their private key?
Does the public address have enough funds to cover the transaction?
is the type of transaction valid within the particular smart contract?

all can be answered in true/false.

The very narrow focus of blockchain consensus is why smart contracts are referred to as being deterministic; they execute exactly as written

with a much higher degree of certainty than traditional systems.

Chainlink's responsibility -
To deliver this promise

Some more interesting oracle projects can be found here -
https://cryptoslate.com/cryptos/oracle/