/biz/ - Business & Finance

>>56197294

>>55039368
Now, you might wonder how Chainlink incentivizes these Node Operators to provide accurate data and behave honestly. Well, that's where LINK tokens come into play. LINK is the native cryptocurrency of the Chainlink network. Node Operators are required to stake a certain amount of LINK tokens as collateral to ensure their good behavior. If a node provides incorrect or malicious data, it can be penalized by losing some of its staked tokens.

By combining these elements – decentralized nodes, multiple data sources, cryptographic proofs, and economic incentives – Chainlink creates a robust and reliable system for fetching real-world data into smart contracts.
It ensures that smart contracts can access accurate and trustworthy pricing information, critical for various use cases such as decentralized finance, supply chain management, options contracts, insurance contracts, and more.