Chainlink (LINK) creator Sergey Nazarov is making some predictions for crypto and blockchain technology for the coming year.
In a new interview on Real Vision Crypto, Nazarov says with certain security advancements, more crypto applications will be able to start operating between multiple blockchains.
“With the one caveat that it’s going to take time to create that security, I think this initial dynamic, I expect it to start taking hold more and more in 2023. So in the coming year, I imagine seeing more and more applications starting to become hyper-connected between chains, starting to become composed of multiple parts on different chains, partly with the help of CCIP (Cross-Chain Interoperability Protocol).
So the goal for us is to get out early versions that we end up testing with with production users for initial small subsets of use cases. And then we learn from that and the Chainlink community learns from that and then we’re able to make an increasingly secure system that can handle higher throughput, higher amounts of value, just like we’ve been able to do that with the data side.”
Nazarov also gives an update on the next phase of Chainlink’s partnership with SWIFT using the project’s CCIP technology, which aims to allow for elaborate communication between many blockchains. He says there’s a strong demand among banking institutions to have the capability of operating across multiple chains.
“Now we’re working through the early stages of a second proof-of-concept with (SWIFT) and multiple banks, where we are basically looking to use CCIP to connect multiple chains in the kind of banking infrastructure world, both with public chains as well as private banking chains.
And this is important because collateral and liquidity will live on different chains, both on public chains and on private banking chains, but just like applications would like to have access to users, collateral, liquidity, all these things on various public chains, private chains actually want the same thing between banks and they also want access to public chains.”
Nazarov says Chainlink’s CCIP could attract hundreds of trillions of dollars in value from banking institutions who need it to engage in various types of blockchain-based activity.
“There’s actually multiple multi-trillion dollar asset holding banks that are making kind of crypto decentralized finance (DeFi) subsidiaries. And these crypto DeFi subsidiaries are wholly owned by those banks, and they are not just about custody. They are actually about interacting with public chains as well as other private chain banks. And all of these banks will need a system to utilize multiple chains.
What CCIP does in this context is it allows a bank to integrate with the Chainlink system and with that one integration, to use 10, 15 or more chains, and what that does for the crypto environment, the crypto ecosystem, is it accelerates the appearance of banks, and it accelerates the appearance of value from the banking sector, which has hundreds of trillions of dollars in value.”
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