Chainlink

Chainlink is a cryptocurrency and decentralized oracle network first developed in 2017 by Sergey Nazarov, Steve Ellis and Amit Kumar. Chainlink connects external data sources, payment systems, cloud-based services, and other real-world applications to activate smart contracts that are "real world aware".

Chainlink is specialized for use in smart contracts. Whereas currencies like Ethereum and Cardano are primarily used for transactional purposes, Chainlink focuses on comprehensive data access and ability to transfer value across networks. By offering these features combined with lower transactions fees, Chainlink has quickly become one of the most popular cryptocurrencies.

With more developers creating new decentralized finance applications on a daily basis, the total value locked up in DeFi projects has quickly grown to billions of US dollars. Chainlink plays important role in this as it provides oracle functionality for protocols that need external data to function properly - for example decentralized stable coins, pegged to exchange rates of fiat currencies.