Chainlink (LINK) is a blockchain oracle network. Oracles help smart contracts use information from outside the blockchain, such as price feeds, events, and other data.
Why oracles matter
A smart contract cannot automatically know real-world facts unless data is brought to it. Chainlink provides infrastructure that many DeFi apps use for price data and other services.
What LINK is used for
LINK is the token associated with the Chainlink network. It can be involved in paying for services, incentives, and network participation depending on the product and setup.
Chainlink is important because reliable data is necessary for many blockchain applications, especially lending, trading, insurance-like tools, and automated settlements.