/biz/ - Business & Finance

How much Link for pic related?

>smart contracts need off chain data from apis
>data gets on to blockchain via middleware called oracles
>current oracles are centralized defeating the purpose of blockchain (trustless, immutable ledger, no single point of failure, etc.)
>chainlink proposes decentralized oracle network comprised of independent nodes
>contract exists on chain
>contract calls chainlink contract
>chainlink contract gives nodes on oracle network orders
>nodes query relevant apis from (not necessarily) disparate sources for data
>apis return data to nodes
>nodes aggregate data with algorithms that return accurate data despite potentially faulty nodes (aggregation algorithms and their proofs are technical, just go slow/be patient and look up relevant terms)
>aggregated data is returned to contracts on chain
>contract executes according to conditions satisfied by the returned data
>nodes build reputation by several reliability metrics
>node uptime and timliness in query reponse
>correct data reported
>number of contracts offered to node
>number of filled contracts
>>number of correctly filled contracts
>average node response time
>penalty payments offered (nodes may or may not be required to stake LINK as collateral in case data they report is incorrect and causes faulty execution of a contract)
>LINK token is used both to pay node operators for successfully filling an on chain request and as collateral/penalty payment for serving up faulty/incorrect/fraudulent data to an on chain contract
>nodes can also operate on intel SGX "trusted hardware" that allows them to parse contract related data in a private environment or to perform calculations with that data in private (some users may not want certain calculations or transactions to appear on a public blockchain)