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Chainlink Ecosystem Overview

Yo-An Lin
November 23, 2021

Chainlink Ecosystem Overview

Yo-An Lin

November 23, 2021

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  1. Yo-an Lin (c9s) 2021
    Chainlink Overview
    The ecosystem, how does it work?
    And the real side

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  2. ChainLink
    • Chainlink was created in 2014, though it didn’t launch until 2017. Its founder
    is Sergey Nazarov, a 32-year-old entrepreneur who has a major presence in
    the crypto market.

    • Originally, the Chainlink network was designed to be a centralized oracle
    system that can verify incoming information. However, it has since morphed
    into what it is today: a decentralized oracle network that pairs with smart
    contracts to provide secure transactions using external data sources and

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  3. ChainLink
    Price History
    • When Chainlink’s LINK tokens
    rst hit the market in 2017, they traded for just
    above a cent in USD. The cryptocurrency’s market capitalization was also
    understandably quite low.

    • Prices stayed this way for a while, trading at less than a dollar per token until
    mid-2019, when the price per token increased, and it began trading at
    between $1 and $4 per token. However, for the latter half of 2020, LINK
    tokens began to increase in price even more to over $14. In February 2021,
    LINK reached an all-time high price of nearly $37 per token.

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  5. The Ecosystem
    • Data Clients (mainly DeFi applications)

    • Smart Contract Developers

    • ChainLink Node Operator (CL Node)

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  6. The LINK token

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  7. The LINK token
    • ERC-677 (proposed by ChainLink developers)

    • The ERC-677 issue is not closed yet. Hence it’s not a approved standard.

    • ERC-20 compatible token

    • transferAndCall method (let you transfer a token and call a method on

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  11. Chainlink Node

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  12. Chainlink Node
    • An oracle contract (one-to-one relationship to the node)

    • PostgreSQL (for storing jobs, runs and wallet keys)

    • Low hardware requirement: 2GB~4GB memory is enough.

    • Blockchain node endpoint (for Ethereum, you can use geth, infura.io or

    • Wallet key for the node. (For writing transactions to the blockchain)

    • Gas tokens in the wallet (for Ethereum, it’s ETH)

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  13. Oracle


    Node Wallet
    Monitoring and Sign transaction
    one-to-one relationship

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  15. Chainlink Node
    • An Oracle contract

    • Jobs (Oracle contracts use JobID to call the API on the node)

    • Runs

    • Bridges

    • Core Adaptor

    • External Adaptor (an adaptor connecting to external web service via JSON

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  16. The Oracle Contract
    // SPDX-License-Identifier: MIT

    pragma solidity 0.4.24;

    import "@chainlink/contracts/src/v0.4/Oracle.sol";

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  17. Chainlink Node
    • Each Chainlink Node has its own unique job entry (unique job ID).

    • JobID is an UUID.

    • Oracle contracts use the JobID to execute the API de
    ned on the node.

    • Jobs de
    ne the task sequence.

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  20. Chainlink Node
    Calling Jobs with core adaptor

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  21. Chainlink Node
    Calling Jobs with core adaptor

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  23. Chainlink Node
    External Adaptor
    • External Adaptors are just web services with the required JSON request/
    response speci

    • You register the external adaptor via the Chainlink Node bridge, so that Jobs
    can get the data from the external adaptor.

    • An external adaptor can be a service written in any programming language.

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  26. Price Feeds
    • Major Price Feeds are maintained by Chainlink O
    cial. (They also pay the gas
    fee and LINK token to the oracle contracts)

    • Price feed contracts are not open sourced. They are hidden behind the proxy

    • Some companies did the reverse engineering to implement their own price feed.

    • To join the major price feed oracle network, you need to join the Oracle

    • To add a new token to the o
    cial price feed, $3M market cap is the minimal

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  27. Price Feed
    Using price feed as a Chainlink Client

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  28. The Official Price Feed Arch

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  29. Feed Registry

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  32. An internal document that describes the oracle olympics

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  33. Aggregator
    • Aggregator calls the oracle network.

    • There are 2 kinds of aggregator:

    • Flux Aggregator - no o
    cial documents, only client tutorial. Contract-
    based, high cost.

    • O
    -chain Reporting (OCR), no o
    cial documents as well. O
    computing with a consensus algorithm.

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  34. Chainlink Market

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  39. Wrap up
    • You receive LINK token from your oracle contract.

    • You burn ETH token as the gas token to send the result as a txn.

    • One oracle contract can only have one CL node running.

    • You don’t need LINK token to run a CL node.

    • Chainlink node are isolated, you can not join the price feed by yourself.

    • Price feed smart contracts are closed source. (Club member only)

    • No o
    -chain reporting and
    ux aggregator documentation. (Club member only)

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  40. Comments from Community

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  49. Q & A

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