ChainLink: A Decentralized Oracle Network for Smart Contracts
This whitepaper introduces ChainLink, a decentralized oracle network designed to bridge the gap between smart contracts and real-world data. It addresses the limitation of blockchains, which cannot natively communicate with external systems, by proposing a network of oracles that provide secure and reliable data feeds to smart contracts. The document details ChainLink's architecture, including on-chain and off-chain components, and discusses various approaches to ensuring oracle security and decentralization, such as distributing data sources and oracles. It also explores the use of trusted hardware, like Intel's SGX, to enhance confidentiality and integrity. Furthermore, the paper proposes security services like validation and reputation systems, and a contract-upgrade service to ensure reliability. Finally, the long-term technical strategy focuses on oracle confidentiality, infrastructure changes, and enabling off-chain computation.