What is Chainlink? LINK Explained with Animations

Summary

Smart contracts are isolated from the outside world — they can't access prices, weather, or sports data on their own. Chainlink solves this oracle problem with a decentralized network of nodes that deliver external data on-chain. LINK is the token that incentivizes honest node operators.

Key Concepts

Things To Remember

• The oracle problem: blockchains can't natively access real-world data.
• Chainlink uses multiple nodes to aggregate data, reducing single point of failure.
• Chainlink VRF provides verifiable randomness for NFTs and games.
• Most major DeFi protocols rely on Chainlink for price data.

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