What Is the Purpose of the Chainlink ‘Service Agreement’?
The Chainlink Service Agreement is a contract on the blockchain that defines the terms of the data request between a requesting smart contract and the Chainlink oracle network. It specifies the data source, the number of oracle nodes required, the aggregation method, the payment (in LINK), and the penalty for a node failing to perform.
It acts as a transparent, cryptographically enforced Service Level Agreement (SLA).
Glossar
Service Level Agreement
Remedy ⎊ A Service Level Agreement within cryptocurrency, options trading, and financial derivatives defines quantifiable performance benchmarks for critical system components, establishing recourse for failures impacting trade execution or data availability.
Agreement Guarantee
Assurance ⎊ Agreement Guarantee represents the critical property ensuring that all honest participants in a distributed financial ledger commit the same transaction set, regardless of network latency or adversarial attempts.
Chainlink
Protocol ⎊ Chainlink functions as a decentralized oracle network, providing verified, tamper-proof external data feeds, which are indispensable inputs for pricing and settling complex smart contracts based on crypto derivatives.
Chainlink Service Agreement
Oracle ⎊ The Chainlink Service Agreement (CSA) fundamentally establishes the legal framework governing the provision of oracle services, critical infrastructure connecting blockchain smart contracts with real-world data and systems.
Requesting Smart Contract
Initiation ⎊ The act of requesting a smart contract, within cryptocurrency derivatives markets, represents a formalized invocation of on-chain execution protocols.
Chainlink Oracle
Oracle ⎊ The Chainlink Oracle represents a decentralized network providing external data feeds to smart contracts on blockchains, notably Ethereum.