• Chainlink is a decentralized oracle based on Ethereum that connects non-blockchain systems to blockchain networks.
• The goal of Chainlink is to connect data stored on traditional mediums to the emerging blockchain ecosystem.
• The original Chainlink whitepaper was co-authored by Steve Ellis, Sergey Nazarov, and Cornell University Professor Ari Juels to provide an oracle that would provide outside connectivity to on-chain smart contracts.
Chainlink is a decentralized oracle platform based on Ethereum that enables the connection of non-blockchain systems to blockchain networks. The goal of Chainlink is to bridge the gap between traditional data storage methods and the rapidly expanding blockchain industry. The Chainlink platform was created in 2017 by Sergey Nazarov and Steve Ellis, who were aided by Cornell University Professor Ari Juels in producing the original Chainlink whitepaper (v1.0).
The whitepaper argued that while smart contracts have revolutionized the world, they are limited in their ability to access data from outside sources due to the consensus mechanisms employed by smart contracts. This means that smart contracts lack the capacity to retrieve data from key external resources, thus limiting their potential. The solution proposed in the whitepaper was the introduction of an oracle which could provide outside connectivity to on-chain smart contracts, allowing them to become more resilient and secure against attack.
Furthermore, the whitepaper noted the importance of having a decentralized oracle, as this would extend the tamperproof and independent characteristics of smart contracts to their connection with non-blockchain environments. The whitepaper also argued that smart contracts can only reliably replace digital agreements if they are made “externally aware”, and that Chainlink would provide this link between smart contracts and external data sources.
Since its creation, Chainlink has grown in popularity and is now used by a range of enterprises and organizations, including Google Cloud, Oracle, and SWIFT. The platform is seen as a key piece of technology in the world of blockchain and smart contracts, and is seen as necessary for these technologies to reach their full potential. As the use of blockchain technology and smart contracts continues to expand, Chainlink is poised to become one of the most important pieces of infrastructure in the industry.