Although cryptocurrencies have been around for quite some time now, it was only recently that its development has seen a dramatic push in the past few years. However, there are still some limitations that prevent the widespread implementation of different cryptocurrency technologies. The issues at hand that need to be addressed before cryptocurrency technologies can be adopted for use in daily life are its scalability, privacy, security and physical integration.
At the core of cryptocurrencies lies a concept known as smart contracts. A smart contract can be thought of as a digital version of legal contracts deployed on decentralized networks. The execution of smart contracts require data from the real world, and therefore, there must be some way of acquiring data and interaction with the physical world. This interaction with the physical world is achieved through a middleware known as ‘oracle’. The story of ChainLink starts from here basically.
What the technology behind ChainLink provides is the blockchain based secure oracle network which allows and further streamlines the interconnectivity of smart contracts and external resources. The Chainlink network consists of two separate parts, on-chain and off-chain, both of which work synchronously to deliver the end-service.
ChainLink was founded in 2014 and launched by a company named SmartContract. The team is being directed by two master-minds of the cryptocurrency industry, Sergey Nazarov and Steve Ellis, who both have been a part of different projects before.
Unlike the recent cryptocurrency projects, a lot of research has been put into ChainLink since it was announced. However, it was in the year 2017, when ChainLink started to send waves into the crypto-markets and its news was well-received within the cryptocurrency community as well. ChainLink is built upon the Ethereum Blockchain, and its team have really focused on its development rather than its marketing.
The project addresses the short-comings of the present-day cryptocurrency technologies like their inability to get integrated in to the day-to-day applications on a widespread scale. ChainLink also has a history with SWIFT, which is one of the largest global provider for secure financial transactions. Its relationship with SWIFT has helped it to get widely acclaimed acceptance. In fact the year 2019 has been tremendous for ChainLink in terms of its growth.
To talk a little about the underlying technology that ChainLink offers is that simply put, it is a middleware that bridges the gap between the blockchain cryptocurrency networks and the real-world data that is involved in the processing of a transaction. The actual product was reportedly launched in May 2019 and is getting listed on many different cryptocurrency exchanges ever since.
Perhaps the single most important achievement for Chainlink in the past year has been that it managed to get listed on famous exchanges like Binance and Coinbase. The cryptocurrency was selected to get included in the exchange listings based on popular opinion and the remarkable merits of its technology. The technology is rapidly gaining momentum and is getting much-anticipated feedback from the crypto-community. With the recent shift of the cryptocurrency-sphere towards the underlying science of smart contracts, the world will see ChainLink leading the concerned field. Some analyst even predict that Chainlink can increase by tenfold over a course of two years.