Link power: How the chain revolutionizes the DEFI ecosystem
In recent years, the world of Blockchain has recorded a significant increase in innovation and adoption. Of the many exciting events, one project is distinguished by a breakthrough role in a decentralized financial ecosystem (DEFI): chain (link). In this article, we will delve into the world of the chain, examining its history, technology and influence on DEFI.
What is a chain?
Łączklink is a decentralized Oracle network that allows smooth interaction between blockchain applications and external data sources. Founded in 2017 by Robson Liu, Stephen Tarra and Chris Herndon, a chain to limit the gap between intelligent contracts and data in the real world, providing a more reliable and efficient way of application to obtain accurate and current information.
How does the chain work?
The main function of the chain is action as an intermediary between Blockchain applications and external data sources. This is achieved via a decentralized Oracle network, which allows users to ask various data providers (DPS) to obtain specific data. DP can be a traditional database, social media platform, and even a service built.
When an intelligent contract must access external data, it sends a request to the Oracle Link network. The Oracle node receives the request and corresponds to the desired data. This process is called a “question” or “oraching”. In exchange for providing accurate and reliable DP data (data provider), he charges a small fee.
The role of the chain in DEFI ecosystems
The DEFI ecosystem has recorded a rapid increase over the past few years, driven by the growing reception of decentralized loans, loans and trade platforms. However, many DEFI applications have a problem with scalability problems, because they often rely on centralized exchanges and API interfaces to download data from external sources.
Decentralized Oracle chain network solves this problem, providing a scalable and efficient DEFI application to access real data. Using Oracle Network, programmers can reduce their rely on centralized services and increase the overall performance of their applications.
Key functions and cases of use
Several key functions make the chain connection an indispensable element of the DEFI ecosystem:
- Scalability : Decentralized Orachore network in Banlink allows smooth interaction between intelligent contracts and external data sources, even in high traffic environments.
- Reliability : Oracle Link nodes provide accurate and reliable data, ensuring that DEFI applications can trust access to information.
- Interoperability : The chain link enables programmers to interact with many DPS and API interfaces, expanding their ability to create complex and scalable DEFI applications.
Some noteworthy cases of use for a chain in the DEFI ecosystem include:
- Loan platforms : Many credit platforms have integrated the Oracle Link network with their interfaces, enabling users to access interest rates and other relevant data from external sources.
- DEFI portfolio
: Łączkink was used as a safe solution for storing DEFI wallets, providing an additional layer of protection against hacks and feats.
- Decentralized exchanges (DEXS) : BainLink Oracle Network allows DEXS to provide accurate and reliable price data to users.
Challenges and future changes
While the chain has made significant progress in the DEFI ecosystem, there are still several challenges that should be solved:
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- Safety : While decentralized chain architecture provides excellent safety, it is not reliable.
