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Connecting your smart contracts to the inputs and outputs it needs.
Building a truly valuable smart contract requires the use of multiple inputs to prove contractual performance, as well as multiple outputs to affect outside systems and/or send payment to complete the smart contract. Chainlink provides your smart contract with the inputs and outputs it needs to reach its full potential.
Smart contracts require secure middleware to connect them to real world data. This external data will trigger the contract, creating the need for its high reliability.
The problem: smart contracts can't access data on their own.
When developers implement their chosen smart contract, they encounter a connectivity problem. Their smart contract is unable to connect with key external resources like off-chain data and APIs. This lack of external connectivity is due to the method by which consensus is reached around a blockchain's transaction data and is a problem for every smart contract network.
Centralized oracles are a point of failure.
Connecting smart contracts to data inputs through a single node creates the same problem that smart contracts themselves seek to avoid, a single point of failure. With a single oracle node, your smart contract is only as reliable as that one node.
The solution: a highly reliable decentralized oracle network.
Chainlink’s decentralized oracle network provides the same security guarantees as smart contracts themselves. By allowing multiple Chainlinks to evaluate the same data before it becomes a trigger, we eliminate any one point of failure and maintain the overall value of a smart contract that is highly secure, reliable, and trustworthy.