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Chainlink (LINK) is a decentralized network of nodes that seeks to connect external data and information to on-chain smart contracts. The platform enhances the capabilities of smart contracts by allowing access to real-world data and off-chain computing, while retaining the security of blockchain technology. Smart contracts function like regular contracts, except they run in the form of protocols on the blockchain, making them immutable and verifiable by all stakeholders. However, since most data and services do not reside on the blockchain, the challenge lies in linking outside information to blockchain smart contracts in a language both parties understand.

Chainlink solves this challenge by linking off-chain and on-chain data through oracles, acting as intermediaries that translate data from the real world to smart contracts on the blockchain and back again. Chainlink aims to provide a secure, decentralized, tamper-proof "blockchain-middleware" and an easy way to access the multiple inputs and outputs needed by a complex smart contract, ultimately accelerating the development of useful smart contracts through secure access to important off-chain resources.

To achieve its goals, the Chainlink network delivers a reliable, tamper-proof network, a seamless connection to any API, proven, ready-made solutions, and secure off-chain computation. The platform's foundation is built on decentralized oracle networks (DONs), maintained by a committee of nodes and performs functions as decided by the committee. DONs enhance and expand the capabilities of smart contracts on a target blockchain by providing more functions than available natively.

The native token of the platform is LINK, which users can pay Chainlink node operators using LINK tokens. The token finances the platform's growth and provides an incentive to users to create more tokens. Users can pay node operators for their services using LINK tokens. Chainlink node operators stake LINK in the network to indicate their commitment to the network and reward good service. LINK is also used to govern the network, and nodes with a higher stake are more likely to be chosen to fulfill data requests and thus earn LINK tokens for their services. Similarly, the Chainlink network penalizes faulty or dishonest nodes by taxing their LINK stake.

Sergey Nazarov is the cofounder of Chainlink, who also cofounded SmartContract and Secure Asset Exchange. The updated whitepaper, called Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks, was released on April 15, 2021.

In the growing Chainlink network, nodes deposit liquidity in the form of LINK tokens as an explicit incentive and are liable to forfeiture if a node fails to deliver services or misbehaves. The Chainlink network also offers an implicit incentive called future fee opportunity (FFO) for good behavior, where users pay fees to nodes that have a good track record or reputation. These two incentives are mutually beneficial, allowing oracle nodes to generate a steady stream of staking from users while benefiting from their good behavior collectively.

In conclusion, Chainlink (LINK) is a decentralized network of nodes that connects off-chain and on-chain data through oracles to enhance the capabilities of smart contracts. The platform delivers a reliable, tamper-proof network, a seamless connection to any API, proven, ready-made solutions, and secure off-chain computation. The LINK token finances the platform's growth and provides incentives for users to create more tokens, pay node operators for their services, and govern the network. The Chainlink network offers explicit and implicit incentives for good behavior, allowing oracle nodes to generate a steady stream of staking from users while benefiting from their good behavior collectively.