The decentralised Oracle network chainlink has grown exponentially since its launch in 2017. A cryptocurrency that started out as a way of connecting blockchains with real-world data, has since evolved into one of the most prominent cryptocurrencies. From a data point of view, here is a timeline, as to how Chainlink has become popular, backed by the latest data and some key milestones.
Chainlink was developed in September 2017 by Sergey Nazarov and Steve Ellis through an Initial Coin Offering (ICO). The team managed to attract $32 million in funding, but back then, blockchain oracles were not quite popular yet. Oracles enable blockchains to introduce third-party information such as stock prices, weather forecasts, etc., and this was probably Chainlink’s key role.
At this time, it was still considered possible to link off-chain data to smart contracts. In its whitepaper, Chainlink described a decentralised oracle system which could be relied on to feed accurate and unmodifiable information to blockchains. Still, having such a vision, the project continued to develop relatively unnoticed for the next year.
Chainlink started rising through the ranks in 2019 through high-profile partnerships that started making rounds. The most prominent of such partnerships was with Google Cloud. In June 2019, Google unveiled that Chainlink’s Oracle solutions will launch its local integration with Google BigQuery to support hybrid blockchain-cloud apps. This integration was a massive vote of confidence in Chainlink’s technology as it showed how the business can be applied in practice.
This partnership defined the turning point for Chainlink as it started to be perceived as a real actor in the blockchain market. The same year, Chainlink also collaborated with Oracle, and SWIFT, as well as several decentralised finance (DeFi) projects and became a popular provider of an essential service.
The year 2020 can rightly be called the year of decentralised finance or DeFi, and Chainlink was one of the main drivers of that trend. Often, DeFi platforms heavily depend on accurate data feeds commonly.
The year also witnessed the release of tokenised versions of new technologies into the Chainlink environment. As an example, Chainlink unveiled the Chainlink 2.0 whitepaper that featured plans for so-called ‘hybrid smart contracts’ which would incorporate off-chain computation. Consequently, this vision enriched the toolkit of oracles, which were no longer limited to reporting data. On the contrary, they could help develop smarter contracts on a higher scale.
The Chainlink’s network expanded increasing the demand for the LINK token, which increased significantly in value and was trading at around $52 in May 2021 as ranked by CoinMarketCap. This exponential growth was anchored on the general cryptocurrency market sentiment, the ongoing decentralised finance space and growing confidence in the Chainlink ecosystem.
In 2021, Chainlink continued to expand beyond just DeFi, entering sectors such as gaming, insurance, and NFTs. As smart contracts became more complex and required diverse data inputs, Chainlink’s oracle solutions became even more essential.
The year also saw the introduction of new technologies within the Chainlink ecosystem. For example, Chainlink introduced the Chainlink 2.0 whitepaper, outlining plans for “hybrid smart contracts” that would leverage off-chain computation. This vision expanded the utility of oracles, allowing them to do more than just provide data. Instead, they could enable more complex and scalable smart contracts.
Chainlink’s network continued to grow, and the value of the LINK token skyrocketed, hitting an all-time high of $52 in May 2021, according to CoinMarketCap. This meteoric rise was fueled by the broader crypto bull market, the growing adoption of DeFi, and increasing trust in Chainlink’s technology.
By 2023, Chainlink has been committed to partnering in over 1000 projects ranging from financial to games, and insurance. It emerged as the market leader in delivering safe and distributed data feeds to blockchain environments. New data, available on Chainlink’s blog, shows that Chainlink oracles minted more than $75 billion in value across DeFi platforms by the end of 2023.
In addition, Chainlink announced the Cross-Chain Interoperability Protocol (CCIP), through which data and tokens can move freely between chains. This could be a great frontier in the multi-chain fantasy world that most experts in the blockchain industry see in the years to come.
Thus, like most organisations, the growth of Chainlink has not been restricted to a technological aspect only. The developers operating the system referred to as “Node Operators”, have multiplied; as a result, there are ambassador programs that have escalated their international acknowledgement. In 2023, the main highlights of Chainslink are its focus on sustainability since the Oracle nodes’ energy consumption was optimised, and the project met the growing trend of environmentally friendly blockchain solutions.
Estimated for 2025, Chainlink again sustains its poised position to dominate the Oracle market. As we move into the era of more advanced AI, as well as more intricate smart contracts as part of the system, there will be a constant need for accurate data that is decentralised. Besides, the CCIP technology of Chainlink and the expansion of the DeFi market will strengthen this infrastructure in the future.
Some experts expect Chainlink to follow through on more partnership deals with large institutions, to strengthen its functionality in real-world scenarios. The decentralised finance market itself is projected to reach well over $200 billion by the time 2025 rolls around, and Chainlink will be at the very centre of it all.