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After the development of Blockchain technology, online transactions, data storage, and other related applications of Blockchain took a huge leap. Not only that, but blockchain also started entering new domains and is already garnering a lot of attention and interest of investors due to the low costs and high security that it provides to its users. The rise of blockchain and cryptocurrencies saw the development of new cryptocurrencies and platforms that were designed to cater to specific needs such as cloud storage (Siacoin) and decentralized online entertainment networks (Tron). In the light of these blockchain networks, Chainlink token was created as a medium between real-world applications and smart contracts, using a decentralized oracle network.
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Chainlink token is technically an Ethereum offspring and operates as a decentralized oracle network. The platform grants Smart Contract connectivity to real-world applications too by giving the network access to reliable data feeds, APIs, payments, and other resources. The Smart Contracts, which are also used in the Ethereum network, are pre-specified information that is agreed upon by members of both the parties, which then verifies the conditions of the transactions and automatically executes it if the conditions are met. Since the Smart Contracts are stored on the network blockchain itself, they are immutable (cannot be altered) and can be verified by everyone on the network. This level of transparency ensures the guarantee of trust among both the parties as the Smart Contract will only be executed if all the prerequisites of the transaction are met and agreed upon. But Smart Contracts can only take into account that the data that is available on the blockchain or that can be imputed in the blockchain in a virtual format. This creates a barrier between the real-world assets and the Chainlink blockchain.