ChainLink is doing a great job by facilitating reliable data which they call is the definitive truth. For the success of any agreement or smart contract, it is important for the data to be reliable and true. High quality data when coupled with the efficiency of computing systems and the blockchain technology providing for immutability can lead to transactions that are based on reality.
Every kind of transaction should be based on truth. Whether token generation, token movement, voting, lending, borrowing or other kinds of transactions truth should be the basis of smart contracts. Since smart contracts are designed to provide for real world application, they need to be backed by real-world data that is true and reliable. ChainLink has been looking at the need for reliable and real time data as its opportunity and made it the point of focus of its day to day business.
The blockchain architecture needs some help to connect to real-world and off-chain data to provide for efficient usage of Dapps and Smart Contracts and the purpose for which they are designed for. The disconnection between the blockchain world and the real time world data is known as the oracle problem. This has also been the hurdle for adoption.
ChainLink Oracles are hailed the holygrail of reliability in terms of transparency and the guarantees, which are required for block chains. The ChainLink oracles consist of external data feeds of different events and thus makes it possible for smart contracts to be able to connect securely for customized execution of their purpose.
ChainLink and Definitive Truth
It has been previously published, “At Chainlink, we generate definitive truth about real-world data and events to a sufficiently high threshold for it to be useful to blockchain systems.”
Chainlink tweeted: “Introducing the first Chainlink Builders Session: Building DeFi Protocols & Preventing Price Oracle Attacks. In this dev workshop, PatrickAlphaC will show you how to use ChainLink Price Feeds to protect DeFi protocols against price oracle attacks.”
Sergey Nazarov when commenting about the Data Quality for DeFi Smart Contracts stated that the risk also extends beyond on-chain oracles, and it is something which DeFi smart contract developers are to become aware of as a key security consideration. He also pointed to how there are several flavors of price oracles attacks and different methods being employed to avoid them.
Sydney Ifergan, the crypto expert tweeted: “ChainLink (LINK) is all geared to put an end to price oracle attacks. Awaiting Development.”