What is Chainlink and what is its role?
Chainlink is oracle software, not a blockchain: it carries outside data to smart contracts, and the LINK token pays the node operators who fetch it.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
On this page
- Nodes find and check data before delivery.
- It is oracle software, not a blockchain.
- Its services include price feeds and messaging.
A smart contract is a program that runs on a blockchain. It cannot read facts that live outside the chain. An oracle brings outside facts to a chain, and Chainlink does that for many blockchains.
How does Chainlink work?
Chainlink runs no blockchain of its own. It sits between a chain and the outside world. When a contract needs a fact, independent node operators find it, check it, and the network returns one answer.
What is Chainlink used for?
Chainlink says its services cover more than prices. They include:
- Data feeds that publish asset prices.
- Messaging that moves data between chains.
- Randomness for games and lotteries.
- Proof of reserve checks on holdings.
How is Chainlink different?
Chainlink works alongside blockchains rather than competing with them. Many people call it an early oracle network.
Who created Chainlink?
Chainlink was co-founded in 2017 by Sergey Nazarov and Steve Ellis, with Ari Juels as a white paper co-author. It raised $32 million in an ICO in September 2017, and its mainnet launched in May 2019.
What risks and legal issues?
Oracle networks can fail. A node can go offline, and the group can still answer. LINK pays for delivery, not for accuracy. US regulators have debated whether tokens like LINK count as securities.
Frequently asked questions
It pays the operators who fetch and deliver data, and it funds subscription accounts.
Yes. A developer can run a single feed or use another oracle network, which usually means trusting its operators.
No. It pays operators for their work, and a wrong figure can still reach a contract.
