Is Chainlink Just a Price Feed Oracle?

What is Chainlink?

Chainlink is a blockchain middleware project the enables smart contracts, like those on Ethereum and DeFi to access key off-chain resources such as data feeds, web APIs and traditional banking infrastructure or payments.

Critically, Chainlink figured out a way to get information in and out of a blockchain in a manner that is secured, decentralised and ultimately trustworthy. They achieved this by creating a network of nodes that provide information to and from the blockchain, which is now a vital piece of blockchain middleware for smart contract infrastructure.

This middleware now provides essential information for many cryptocurrency and blockchain projects for data like price feeds, event results and much more without sacrificing security or decentralization.

How does Chainlink work?

Chainlink is a decentralized oracle network that consists of both providers of data and purchasers of data. Purchasers request the data and providers return data securely on the network.

Purchasers leveraging the Chainlink network select certain data they want and the the provider bids to provide the data. The providers must commit a stake of LINK (the underlying token of Chainlink), which can be taken away from them if they misbehave or provide poor data.

Example of Chainlink use case