How do smart contracts know off-chain prices?
Chainlink aggregates price feeds from multiple sources through a network of independent nodes, then publishes them on-chain. Smart contracts can’t directly access off-chain data, such as cryptocurrency prices or match results, so an oracle has to deliver that data on-chain.
If an oracle is manipulated, contracts that use its prices may settle incorrectly. That’s why it’s crucial to use diverse data sources and a sufficiently decentralized network of nodes.
$LINK is the token of the decentralized oracle Chainlink.