Thread by @cryptoPothu

#Chainlink in 8 tweets

Here are the most important things you need to know about Chainlink, the decentralized oracle.

A thread 🧵👇

1. Smart contracts cannot fetch external data. The only way to efficiently get data into the blockchain is for a software component called an “oracle” to input it into the blockchain. A centralized oracle would have complete control over a smart contract’s outcome.

2. #Chainlink uses a decentralized network of independent entities (oracles) that collectively retrieve data from multiple sources. This data is then aggregated and validated, and finally delivered to the smart contract as a single data point.

3. The #Chainlink aggregating contract can validate data from a single source or from multiple sources. Additionally it can reconcile data from multiple sources.

4. Chainlink use cases:
- DeFi: to price assets, access interest rates, and verify collateralization
- Insurance: currently being used to provide weather data to the Arbol crop insurance market
- Gaming: fair randomness solution (VRF) for games

5. Chainlink will also allow traditional systems like data providers, IoT networks, websites, and enterprises to make their data and services available to any blockchain network.

6. $LINK is central to how #Chainlink operates. $LINK is used to pay node operators for their work. Node operators must also stake $LINK in the network. The #Chainlink network punishes faulty or dishonest nodes by taxing their stake of $LINK.

7. #Chainlink provides multiple security layers to ensure its oracle network can be trusted:
- Generalized Architecture
- Data signing
- Blockchain agnostic
- Reputation systems

8. Chainlink pioneering the charge of bringing Web2 products and services to Web3. It’s crazy to think that we can automatically verify data in such a secure manner. Chainlink’s oracle network has so many uses that it can’t be ignored.

For a full guide to #Chainlink check out the 101 I wrote:

https://twitter.com/cryptoPothu/status/1508563123640299520

Accounts for #Chainlink & $LINK insights:
@chainlink @Smart_Contract @TheCryptoMewtwo @ChainlinkToday @LINK1K @XVGhulk @TheCryptoMewtwo @OniiEth @Crypto_BitC @ModernSociety33 @linkchainlink @CryptoLINKlady @Don_ChainLink @TMNTCrypto @wmtoken @ChartsLink
RT would mean a lot!

More Accounts for #Chainlink & $LINK insights:
@chainlink @Smart_Contract @TheCryptoMewtwo @ChainlinkToday @LINK1K @XVGhulk @TheCryptoMewtwo @OniiEth @Crypto_BitC @ModernSociety33 @linkchainlink @CryptoLINKlady @Don_ChainLink @TMNTCrypto @wmtoken @ChartsLink
RT would mean a lot!

Hope this was insightful. I regularly post 101s and breakdowns, follow to keep up. Check out my Medium for some of my past write ups:
medium.com/@pothu