Blockchains are designed for security and reliability, which also restricts their ability to interact with the outside world. Their smart contracts can only use data within the blockchain and execute tasks exactly as programmed, limiting their potential applications.
However, to unlock the full capabilities of smart contracts, they need access to external data. This could be real-time market information for financial contracts, real-life data for insurance contracts, or trade documents and signatures for trade contracts. Some might even need to settle transactions in traditional fiat currencies. Some might even need weather, sports, supply chain, and economic data to bring new applications to the blockchain.
Why learn about oracles? Why are they an important part of Web3 development?
Oracles come into play to bridge this gap between the blockchain and external systems. They provide real-time, reliable off-chain data to on-chain smart contracts, expanding their capabilities and potential uses. With the help of oracles, smart contracts can react to external events, making them more dynamic and interactive.
Understanding oracles is a must-have skill for any Web3 developer. They broaden the applicability of smart contracts, opening up opportunities in various industries such as finance, insurance, and supply chain. Simply put, oracles take smart contracts from being basic, limited tools to flexible systems that can interact with the real world.
What does Chainlink do?
Chainlink is a decentralized blockchain oracle network that provides a vital bridge between the blockchain’s digital ecosystem and the external physical world. By facilitating the secure communication of smart contracts with real-world data and services outside their blockchain networks, Chainlink becomes an integral player in blockchain infrastructure.
At the core of Chainlink’s importance is its ability to significantly extend the functionality of smart contracts. It does so by granting access to off-chain data and computations, all while maintaining the inherent security and reliability features of blockchain technology.
How does Chainlink work?
Chainlink relies on a decentralized network of oracles. These independent entities gather data from various sources, mitigating the risks associated with centralized data points. Moreover, Chainlink aggregates this data to provide a single, validated data point to smart contracts, triggering their execution.
The potential applications of Chainlink span various sectors and use cases. In the realm of decentralized finance (DeFi), it plays a critical role in accessing real-time interest rates and pricing assets, thereby automating the settlement of contracts. For insurance companies, Chainlink can facilitate the settlement of crop insurance contracts based on specific parameters like temperature and rainfall amounts.
By enabling this robust interaction between blockchain networks and the external world, Chainlink is pushing the boundaries of what’s possible with smart contracts, ushering in a new wave of blockchain innovations.
How can you get started with Chainlink?
Singapore Management University Blockchain Club, College DAO, and Chainlink are thrilled to welcome you to an upcoming live webinar designed to equip you with the skills needed to navigate and contribute to the rapidly evolving world of Web3 technology, – “Build Web3 with Chainlink.”
Explore the boundless opportunities of Web3. This webinar is an excellent opportunity for both newcomers looking to get started in blockchain development and seasoned developers aiming to deepen their understanding of Web3 and Chainlink. Our expert instructor, Frank Kong, will guide you through interactive sessions, ensuring you walk away with the knowledge you can immediately apply.
Here’s what we have in store for you:
🔹 Web3 & Oracle Problem: An in-depth look at the concept of Web3, the Oracle problem, and why it is a critical issue in blockchain development.
🔹 Oracle Data Services: We will explore how Oracle data services work and how they can provide accurate, reliable data to smart contracts on the blockchain.
🔹 Oracle Computing Services: You will learn about Oracle computing services and how they contribute to the execution of smart contracts, enhancing the functionality and scalability of the blockchain.
🔹 Chainlink Developer Community: Get introduced to the Chainlink developer community, a vibrant group of innovators dedicated to making the Web3 vision a reality.