"Chainlink is a decentralized oracle network that enables blockchain-based smart contracts to access reliable real-world data stored off-chain. To accomplish this, Chainlink rewards data providers, known as oracles, for providing accurate and useful data in exchange for Chainlink's native ERC-20 cryptocurrency, LINK.
Chainlink is made up of nearly 1,000 independent decentralized oracle networks that provide crypto market data, FX rates, indices, weather readings, sports stats, election results, flight information, and other information to smart contracts running on over 12 blockchain networks. Arbitrum, Avalanche, Ethereum, Fantom, Harmony, and Polygon are among the blockchains supported by Chainlink.
To become an oracle in the Chainlink ecosystem, data providers must first stake a predetermined number of LINK tokens to maintain the integrity of the network. If data providers are found to be involved in jeopardizing the network's viability, Chainlink will reduce their stakes.
Beyond being a provider of decentralized data, Chainlink offers several services, such as Verifiable Random Function (VRF), Keepers, Proof of Reserve, and Cross-Chain Interoperability Protocol (CCIP). The network's Off-Chain Reporting (OCR) also enables nodes to provide ten times more data to smart contracts while reducing operating costs by 90%."