Chainlink Data Feeds give smart contracts secure access to external data. Furthermore, the  Chainlink Price Feeds sources high-quality price data from reputable data aggregators by pulling data from their APIs. The data is then delivered on-chain via a decentralized oracle network composed of multiple independent security-reviewed node operators.

Moreover, decentralization at both the data aggregation and oracle network levels protects against data manipulation and ensures availability for smart contracts that depend on highly reliable price oracles. Because of their security and reliability guarantees, Chainlink Price Feeds have become the industry standard oracle solution for DeFi, now securing billions of dollars in value and supporting a wide variety of use cases and markets, from derivatives to stablecoins.

1. Chainlink nodes source data for a specific data point from multiple data aggregators.
2. Through a process involving multiple layers of aggregation, the Chainlink nodes come to an agreement on the most accurate value for that data point.
3. One of the Chainlink nodes sends a transaction to store this new data point on the ledger.

Chainlink nodes provide this service across multiple chains for a wide range of data points. Developers can use this data in smart contracts as tamper-proof inputs.

How Splunks work

Splunk has built a view of this process as experienced by the Chainlink node operator. Note how each Chainlink node reports slightly different values over time. In the case of the feed, the average of the reported values is used.

For more detailed information about Data Feeds, you can also consult the developer documentation. A popular feed is the ETH/USD pair, which represents the value of Ethereum in US Dollars, created by aggregating price data from multiple exchanges and data aggregators.

Chainlink services have experienced rapid growth in the last few years. By providing access to a rapidly expanding library of critical market data on-chain, we expect Chainlink services will empower us with many more possibilities in the future to gain unique insights from data.

ABOUT Chainlink
Chainlink decentralized oracle networks provide tamper-proof inputs, outputs, and computations to support advanced smart contracts on any blockchain.

Website | Twitter

ABOUT Splunk
Improve data accessibility. Access data-driven insights. Remove data silos. Splunk is a single platform designed for the way you work, with the capabilities your business demands.

Website | Twitter

RESOURCES
Medium

The post Chainlink Oracle Data with Splunk appeared first on Smart Liquidity Research.