CoinWorld reported:
Chainlink has completed a study with leading European financial companies and scalable chain stores. This leading Oracle service provider for cryptocurrencies and market data, Chainlink, has showcased its collaboration with leading financial companies in Europe. Chainlink explored the use of oracles, artificial intelligence, and on-chain transactions in asset services.
Following the news of this study, the trading price of the native token LINK was approximately $11.80, nearing the mid-range of 2024. LINK reached a peak of over $21 in March but crashed before reaching the predicted rebound of $30. LINK is a major asset in the crypto space but primarily functions as a utility token and has been consolidating for several months.
This study was conducted in collaboration with major asset management companies and selected blockchain projects to ensure the gold standard of data transmission. The study included payment provider Euroclear Bank and Swiss Financial Telecommunications Association, as well as banks and investment institutions such as UBS, Franklin Templeton, Wellington Management Company, CACEIS, Vontobel, and Sygnum Bank. Previously, Chainlink had conducted similar exploratory studies with leading financial institutions in the United States.
Chainlink also collaborated with the blockchain ecosystems of Hyperledger, ZKSync, and Avalanche to test data on a large scale. Chainlink discovered simplified enterprise processes.
Chainlink pointed out that traditional enterprise processes are highly complex and disseminate unstructured data through lengthy documents, reports, or PR texts. On the receiving end, all institutions must communicate with custodians, brokers, fund managers, exchanges, and investors.
Data becomes fragmented among various interest points where available. The requirement to publish human-readable data in multiple formats and states slows down this process and leads to duplication or errors.
Investors often face significant challenges in complexity and cost when distributing data. Custodial businesses allocate $3-5 million annually, with up to 75% of companies manually extracting and distributing data. Data also results in costly data errors, causing businesses up to $43 million in losses annually.
Chainlink tested the usage of data oracles paired with LLM to filter unstructured data. Oracle services were able to convert data points into predefined standards aligned with the Securities Market Practice Group (SMPG). Chainlink also achieved near real-time data sharing and provided a unified gold standard record for managers, custodians, and all participants in company processes. Chainlink also studied removing and cross-checking illusions from certain types of language models.
Based on its Oracle experience, Chainlink developed a unified gold standard solution for on-chain projects. Chainlink has been serving the entire blockchain industry but has gone beyond tokenization of real-world assets and obtaining timely data for smart contracts.
In its testing approach, Chainlink transformed company reports into machine-readable text, enabling LLM to extract specific business process events such as dividend payments. Extracted data exists in multiple versions hosted by nodes. Chainlink used three cross-checks with LLM to test data extraction and validation. Currently, Chainlink has not addressed the issue of responsibility when parsing human-readable data using LLM.
Subsequently, nodes reach consensus on events and publish them on-chain. Chainlink’s approach means any business event can be encoded in a way that is usable in smart contracts.
Once acquired and validated, data can be used in any public or private blockchain to trigger events or transactions. Chainlink’s ultimate goal is to create a new data extraction process that verifies data through multiple versions and then disseminates information almost immediately.
This approach can track various types of business entities, including large companies in the FTSE 100 index, leading companies in the Eurozone, and other fixed-income assets or stocks.
Chainlink has secured over $25 billion in projects, mostly related to pure on-chain and crypto activities. However, Chainlink aims to achieve true asset tokenization, obtain reliable data on pricing and business events, and then publish it on multiple chains as needed.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has also reached peak activity. CCIP data primarily contributes to the transfer of stablecoins such as USDC, as well as LINK, wrapped ETH, and several smaller tokens. Since May, there has been an acceleration in requests for Chainlink CCIP, coming from Ethereum and BNB, as well as some leading L2 protocols.
