There are thousands of different cryptocurrencies and each has its own story. To reach the stage where they are now, many steps had to be accomplished and it is always interesting to discover their journey. In this article, we will take a look at the history of Chainlink with you and find out how this decentralized oracles project managed to become what it is today. As you can imagine, there are many reasons that led to the creation of Chainlink and the development of this crypto-asset, which is very popular today, has gone through several phases.
The basic idea
We can consider that the story of Chainlink begins in september 2014, when its parent company, SmartContract.com, was founded with the aim of establishing a connection between the blockchain and external data sources.
At that time, the development team launched a product that was then simply called “Chainlink”. It was then possible for a smart contract to interact with data coming from a API a website or a source of information.
However, this posed a major problem: centralization of oracles. Indeed, the data received came each time from a single source and this could pose a problem in the event that the information transmitted was not reliable.
In order to solve this problem, SmartContract.com decided in 2017 to create a system decentralized oracles by attempting to collect information from several different sources in order to be able to provide much more reliable final information, due to the cross-referencing of data.
The arrival on the market
In the month of september 2017, about 3 years to the day after the basic idea, the now renowned company SmartContract Chainlink Ltd managed to lift $ 32 million during ICO in order to start building your project based on decentralized oracles.
Tokens LINK have been tradable from September 21, 2017 and were exchanged around 20 cents of dollars. During the bullrun of December 2017 / January 2018, the LINK token exceeded for the first time a value of $ 1 on January 5.
The price of a token LINK will then fall for almost a year and a half during the market correction, before reaching again an amount of $ 1 the May 20, 2019. In comparison with other projects, the price has held up rather well by losing only the maximum 80% of its value, where many projects have made -95% or have simply been kicked out of the market.
The mainnet of Chainlink came out on June 1, 2019 and the value of the token has continued to increase until a value almost reaching $ 5, before the crash of March 13, 2020 linked to the coronavirus. At this very precise moment, almost the entire crypto-asset market saw its capitalization halve and Chainlink was no exception to the rule.
In february 2020, Chainlink announced a partnership with Polkadot, a blockchain project that wants to allow different blockchains to communicate with each other. This confirms Chainlink’s ambitions to want to work with as many different blockchains as possible. The company will also announce partnerships with certain projects Challenge and some dApps, for which the need to obtain reliable information from oracles is paramount.
In june 2020, SmartContract will announce a partnership with the Blockchain Services Network (BSN) national China in order to obtain and organize the best off-chain data. During the month of july 2020, Chainlink has partnered with Binance in order to provide the data exchange on and off-chain for its platform Challenge.
The project Chainlink being arguably the most successful in the world of decentralized oracles, it didn’t take long for him to attract new investors. Thus, the unit value of a token LINK for the first time exceeded the $ 10 the August 7, 2020.
The Aug 16, 2020, the token reached its maximum capitalization in bitcoins, where it was exchangeable for 0.0016 BTC, nearly five times its value during the coronavirus crash that occurred alone 5 months ago. Its dollar price exceeded $ 19. It is at this precise moment the most fashionable cryptoactive of the moment, ejecting Bitcoin Cash from the top 5 of the most capitalized digital assets.
The January 16, 2021, a LINK token was exchanged for the first time over the $ 20 and the token reached its maximum of $ 52.70 the May 10, 2021.
Conclusion on the history of Chainlink
Chainlink’s history is still very recent, but its technology and reliability already seems to be conquering the decentralized oracle market. Even though we are only at the beginning and there are still quite a few improvements to be made to the functioning of the project, the fact remains that Chainlink is already useful for the functioning of many other digital assets. If the company SmartContract Continuing its momentum, it is very likely that Chainlink will eventually establish itself as the benchmark decentralized oracle system for almost all cryptocurrencies that need it to function properly. If you are interested in the project, we invite you to consult our other guides on Chainlink which will give you more information on the subject.
I discovered the world of cryptocurrencies in January 2018. Having arrived at the worst time to invest, I have never stopped training since then and now share my knowledge to facilitate the adoption of cryptos.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.