The episode posits that today's financial system runs on outdated, batch-based database technology from the 1970s. Blockchain and smart contracts represent a fundamental upgrade, creating a programmable, 24/7, and more efficient infrastructure for capital markets.
Blockchains are inherently isolated and cannot access external data. Chainlink's core function is to act as a secure 'oracle' network, providing reliable, tamper-proof data from the real world to on-chain applications, which is essential for any financial use case.
AI is proficient at cheaply creating outputs from vast datasets, but these outputs can be unreliable or manipulated. Blockchain technology offers an immutable, globally verifiable ledger, creating a "single source of truth" to validate and anchor AI-generated information.
The future of blockchain is not one single network, but a fragmented ecosystem of many public and private chains. Chainlink aims to be the interoperability standard, like TCP/IP for the internet, allowing assets and data to move seamlessly and securely between these different environments.
Major financial institutions like DTCC, Swift, and UBS are actively building on blockchain technology with Chainlink. A key focus is creating systems that allow these regulated entities to interact with the world of "permissionless innovation" in a compliant way, incorporating KYC/AML standards.
Keep pulling the thread on Ryan Lovell.