Review on Chainlink by onur bln
Chainlink
chainlink is a project that aims to be a decentralized oracle provider for Ethereum, Bitcoin, Hyperledger and other blockchains. It may sound complicated, but hang with me. Smart contracts are great and will undoubtedly transform the internet in ways we can't imagine right now, and smart contracts even have potential far beyond the internet in the real world. Currently, the problem is that smart contracts (as Ethereum does) cannot communicate with real-world APIs and services. What is an API? An API is a set of commands that a program can send to another program, allowing different programs to communicate effectively between each other. APIs power the entire internet, and the vast majority of today's internet cannot work without APIs.
Now, how does Chainlink come into play? As I said Chainlink is a decentralized oracle provider. Oracle is software that enables smart contracts on the blockchain to communicate with off-chain APIs and services. Without Oracle, this is not possible, and smart contract blockchains can only use data on their own blockchains, making them useless to respond to or use anything elsewhere in the real world or on the internet. There are currently several oracle providers for blockchains, but their main problem is that they are all centralized. Smart contracts are all about decentralization, and using data fed from a central oracle is a major attack point.
Suppose you are betting on a smart contract with a friend. The smart contract uses centralized oracle to check the latest ethereum price. If it goes above $ 1000 before a certain date, you win the bet and get your friend's $ 50, otherwise he will get the $ 50 invested in the contract. The problem with a central oracle is that in this case, your friend can simply enter the central oracle, send false data about the price of Ethereum into the smart contract, and get your money without winning the bet. It's not that big of a deal if you bet with a friend, but it's a much bigger deal if you're a huge company that relies on handling millions of dollars with smart contracts using oracle.
What Chainlink does is that it aggregates decentralized oracles (effectively hundreds or even thousands of sources of the same data), making it virtually impossible to hack similar to a blockchain. In this case, there is no way for your friend to hack the prophecy because the oracle is hundreds of different computers sending the same data.
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Pros
- the project does not naturally increase in value as it gains more use and partnerships...
- It provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.
- Smart Contracts,
Cons
- low value
- Not many people have a chance to get into a project like this in its infancy.
