Chainlink
Data & interoperability
History, architecture and utility
Chainlink connects on-chain applications with external information and other networks. Its oracle services evolved beyond price feeds to include verifiable randomness and cross-chain messaging. LINK has a fixed total supply of one billion tokens; circulating supply and service-specific token flows are separate questions.
Follow the chapters below to examine the mechanisms, supply, upgrades, ecosystem and risks. The asset’s usefulness does not guarantee a market price or an investment return.
Inside the system
Chainlink and the oracle problem
A lending contract needs collateral prices, but its blockchain does not natively know every market price.
How Chainlink Data Feeds work
Data Feeds aggregate observations and expose results to applications, commonly through a proxy pointing to an aggregator.
CCIP and cross-chain messages
Cross-Chain Interoperability Protocol supports messages and token transfers between supported networks.
Verifiable randomness and automation
Smart contracts may need verifiable randomness or an external trigger when a condition is met.
What is the LINK token used for?
LINK participates in the economics of Chainlink services, including payments and certain staking arrangements.
Oracle and interoperability risks
Evaluate an oracle at the level of its particular feed and deployment.
From a market price to a contract
Sources
Observations originate from selected markets and data providers. Market quality affects input quality.