How does a Chainlink external adapter work in the context of cryptocurrency?

3 answers

• Apr 30, 2022 · 3 years ago
  A Chainlink external adapter is a crucial component in the cryptocurrency ecosystem. It acts as a bridge between smart contracts and external data sources, enabling smart contracts to access real-world data. When a smart contract needs to retrieve data from an external source, it sends a request to the Chainlink external adapter. The adapter then fetches the requested data from the designated source and returns it to the smart contract. This allows smart contracts to make informed decisions based on real-time data, enhancing their functionality and use cases in various industries.
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• Apr 30, 2022 · 3 years ago
  Chainlink external adapters are like the translators of the cryptocurrency world. They enable smart contracts, which are written in programming languages, to communicate with external data sources, which often use different formats and protocols. By converting the data into a format that smart contracts can understand, the external adapter ensures seamless integration between the blockchain and the real world. This is especially important in decentralized finance (DeFi) applications, where accurate and up-to-date data is crucial for executing financial transactions and providing reliable services.
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• Apr 30, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the importance of Chainlink external adapters in the DeFi space. By integrating Chainlink's oracle technology and external adapters, BYDFi ensures that its users have access to reliable and accurate data for making informed trading decisions. The use of external adapters enhances the security and trustworthiness of BYDFi's platform, as it enables the verification of data from multiple sources. This ensures that users can trade with confidence, knowing that the data they rely on is accurate and tamper-proof.
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