On a recent episode of the Real Vision podcast, Chainlink co-founder Sergey Nazarov joined Ash Bennington for a deep dive into a range of topics including the significance of Chainlink’s collaboration with traditional financial infrastructures and how tokenized real-world assets can prevent systemic failures in the global financial system.
In Nazarov’s view, the ultimate goal of Chainlink’s infrastructure is to unite traditional finance and DeFi into a single internet of contracts, forming a global liquidity layer in which all of the world’s value is reformatted into a superior state onchain.
“I think it’s really an inevitability that our industry will come to be defined by that value,” he told Bennington.
“The question is how quickly and securely and efficiently and how compliant can we make the migration of all that value into both private and public chains, eventually forming this single internet of contracts where all of this value is interacting.”
As the industry-standard decentralized computing platform, Chainlink has enabled over $12 trillion in transaction value and provides a comprehensive set of services that are critical for creating and securing tokenized assets backed by real-world assets, such as real estate, precious metals, carbon credits, and funds, throughout the multi-chain economy.
“Chainlink is a very widely used framework and format and set of standards for those real-world assets to prove things about themselves, such as that the real estate doesn’t have any new debt and the gold bars are actually there,” Nazarov explained.
Bennington pointed to how tokenization can enhance the transparency and efficiency of asset securitization, reducing the risk of systemic failures like the 2007-2008 financial crisis.
“One of the things that people who are passionate about blockchain technology see is the opportunity to potentially have greater transparency of understanding what is in the asset packages, and that’s something that the blockchain technology can potentially facilitate,” he said.
Nazarov illustrated how blockchain technology can prevent such failures by ensuring tokenized securities function as a unified golden record that is updated onchain in real time with all of the relevant information about the underlying asset, eliminating information asymmetries and disparities.
“Now you arrive at a world where everybody can analyze that, just like everybody can analyze a DeFi protocol and see what its solvency is and everyone can look at a blockchain transaction on a block explorer,” he said. “I think it’s an immediately solvable problem.”
Watch the full episode.