What is ChainLink?
ChainLink is a decentralized oracle network that provides real data for smart contracts on the blockchain. LINK is a digital token used to pay for services on the network.It works as middleware between onchain and offchain systems. By giving smart contracts access to resources outside the network, Chainlink allows them to respond to real events and execute agreements that would otherwise require external validation of performance.
The LINK cryptocurrency is based on its ability to ensure the successful execution of smart contracts based on the Chainlink network.
Smart contracts are tools made possible by blockchains that automatically enforce conditions. They effectively minimize counterparty risk and provide transparency to the system. However, execution only occurs when the right conditions are met. Generally speaking, blockchain protocols are limited to only receiving information and accessing data that resides on the same network.