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Understanding The Truth Machine’s Paradigm Shift

Last week, Chainlink co-founder Sergey Nazarov joined David Nage for Episode 230 of the Base Layer podcast to discuss, among other topics, the society-wide paradigm shift inspired by what Nazarov calls the “truth machine.” 

“The truth machine is really just the continual increase in the amount of cryptographic truth-based topics,” Nazarov explained, noting that the process of actualizing the truth machine is already underway.

Currently, he said, the Chainlink Network provides cryptographic truth on many topics involving market data, weather, news, and various events for which it’s possible to transparently aggregate different sources to essentially create “the most guaranteed version” of a fact possible.

The purpose and function of Chainlink oracle networks is to apply the decentralization, transparency, and cryptographically guaranteed nature of blockchain consensus to everything a blockchain cannot, beginning with data-rich and relatively straightforward topics such as financial markets and weather events, and ultimately moving to more complex topics like elections, news, and sporting events. 

Nazarov explained why he believes the truth machine is so important. 

“I firmly believe that there will be greater and greater demand for cryptographically guaranteed systems and relationships, and you can’t have those cryptographically guaranteed systems and relationships without a truth machine,” he said. 

In his view, the truth machine is essential to creating global standards for cryptographically guaranteed agreements. For example, decentralized crop insurance policies depend on accurate, irrevocable consensus about weather events such as whether or not there was rain at a particular time and place.    

“Without a truth machine, creating those cryptographic guarantees beyond anything around tokenization and ownership is largely going to be impossible,” he said. 

In his view, the evolution of DeFi via cryptographic truth in the form of oracle networks illustrates how the truth machine can drive the growth of other emerging decentralized industries – to such a degree that “cryptographically guaranteed relationships will be the new norm for society.”

He predicted that cryptographically guaranteed digital agreements will quickly become as prolific and essential as email.

Essentially, Nazarov sees the truth machine as the mechanism by which Chainlink facilitates a world powered by truth. He painted a picture of what this world would actually look like.

“We mean that there is a way to get to a world where there is no subjective truth about many topics – there is now objective, definitive, cryptographically guaranteed and irrevocable truth on many topics, and there the world can work in a fair, ungamable way. Regardless of who you are, where you are – the truth will decide what the outcomes of your agreements are, not the whims of whoever controls the trading venue or whoever controls the centralized web system that you just happen to use.” 

Listen to Sergey Nazarov’s full conversation with David Nage on the Base Layer podcast.

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