In a new video, Chainlink co-founder Sergey Nazarov detailed how the Chainlink Runtime Environment (CRE) allows developers to build multi-chain, multi-oracle, multi-jurisdictional smart contracts with inherent compliance and legacy system connectivity faster than ever before.
“Blockchain transactions have been getting progressively more complex over the last five to eight years,” he explained. “As you make more complex smart contracts, and therefore more valuable and useful ones, all of the inputs into those contracts massively grow.”
He recounted the evolution of smart contracts, from a single piece of code on a single chain to the integration of multiple data sources on multiple chains interacting with various compliance and identity systems.
“You need a piece of code that manages all this complexity for you. You need to track and manage the five to ten oracles for different price data, connectivity purposes, compliance purposes, identity purposes, AI integration purposes, and you need this single piece of code to do this in a highly reliable, verifiable way.”
CRE is designed to dramatically accelerate the rate at which institutional capital can flow onchain. Traditional financial institutions are already putting CRE to work.
Recently, Chainlink, Kinexys by J.P. Morgan, and Ondo Finance announced the success of a cross-chain DvP test transaction powered by CRE. Brought to scale, the novel onchain DvP solution could reduce counterparty and settlement risk from system fragmentation and manual workflows that cost market participants more than $914 billion over the past decade.
As the standard for onchain finance, Chainlink has securely enabled over $22 trillion in transaction value. CRE streamlines access to Chainlink’s essential oracle services, including a full stack of tokenization infrastructure, to expand the capabilities of smart contracts.
“Now you could really look at this orchestration-related code and say this is the new critical part of the smart contract that’s managing all the other parts,” said Nazarov. “And that’s what CRE makes possible for the first time.”
Because CRE compresses the development of advanced smart contracts from months to weeks and even days, he believes it’s an innovation on par with the Ethereum Virtual Machine (EVM).
“That type of efficiency boost, and that type of verifiability, and the ability to control and orchestrate all these key components is something very valuable.”
Watch the full video.