When asked, “How do smart contracts get prices from outside the blockchain?”
I usually answer like this: Chainlink aggregates quotes from multiple providers through a network of independent nodes, then writes them to the blockchain. If an oracle is manipulated, contracts that rely on its price could be liquidated incorrectly, so it’s crucial to have diverse data sources and a sufficiently decentralized network of nodes.
$LINK 12.872 (+0.88%)
Comment “1” if you learned something, and if anything wasn’t clear, leave a comment and ask away.
#LINK
Just a note, not investment advice.
I usually answer like this: Chainlink aggregates quotes from multiple providers through a network of independent nodes, then writes them to the blockchain. If an oracle is manipulated, contracts that rely on its price could be liquidated incorrectly, so it’s crucial to have diverse data sources and a sufficiently decentralized network of nodes.
$LINK 12.872 (+0.88%)
Comment “1” if you learned something, and if anything wasn’t clear, leave a comment and ask away.
#LINK
Just a note, not investment advice.