Chainlink is a decentralized oracle network that aims to connect smart contracts with real-world data, events, and payments. It enhances the capabilities of smart contracts by allowing them to securely interact with off-chain data sources and APIs, thereby overcoming one of the key limitations of blockchain technology. Chainlink provides reliable tamper-proof inputs and outputs for complex smart contracts on any blockchain, ensuring high-quality data accuracy and integrity. It is widely adopted in various sectors such as DeFi, insurance, and supply chain to enable more advanced and feature-rich applications.