Company
Date Published
Author
Chainlink
Word count
2247
Language
English
Hacker News points
None

Summary

Smart contracts, which automate multi-party processes using blockchain networks, face the oracle problem due to their inability to connect with external systems for API calls. Chainlink addresses this by providing a secure middleware solution that enables data providers to sell data to all blockchains without altering their existing infrastructure. It offers two main methods for data monetization: utilizing existing APIs or running a Chainlink Node for enhanced data reliability and signing capabilities, which allow direct interaction with smart contracts. Chainlink's network serves as a strategic integration point across various blockchains, making it easier for data providers to reach a vast market without the need to individually connect with each blockchain. By abstracting complexities related to running nodes and handling cryptocurrency payments, Chainlink allows data providers to focus on data quality, facilitating the on-chain availability of data and accelerating the development of smart contract applications. The platform is already used by leading data providers and supports advanced oracle technologies that ensure privacy and security, thereby offering a robust framework for data vendors to expand their business models and participate actively in the decentralized economy.