Chainlink is a

decentralized oracle network that allows smart contracts on the Ethereum blockchain to interact with data from the outside world.

Smart contracts are self-executing contracts with conditions written in code.

They execute automatically when certain conditions are met. However, in order for such contracts to work with real-world data (like currency rates, stock prices, or weather conditions), they need data sources outside the blockchain.

That's where

Chainlink comes into play.

Chainlink provides the infrastructure to obtain this data through

decentralized oracles.

Oracles are independent third-party services that collect and transmit data to the blockchain. Instead of a single oracle,

Chainlink uses a network of independent oracles that verify data and avoid manipulation.

The process goes like this: when a smart contract requires data, it sends a request to the Chainlink network.

Oracles receive this request, collect information from different sources, verify it and pass it back to the smart contract. This makes the data more reliable and secure #Chainlink #ETH #Ethereum