"What we are building is not just technology, but a whole new economic model."
Interview & Article by: Anderson Sima, Executive Editor of Foresight News
Chainlink co-founder Sergey Nazarov, Image source: Chainlink
By the coast in Hung Hom, Sergey Nazarov gave a thumbs-up to the audience below. As a co-founder of Chainlink, he has been active on the front lines of the blockchain industry from New York to Singapore to Beijing.
On October 30, Chainlink's annual SmartCon summit was held for the first time in Hong Kong. In his speech, Chen Haolian, Deputy Secretary for Financial Services and the Treasury of Hong Kong, expressed excitement about the innovative potential of blockchain and virtual assets, looking forward to more integration between virtual assets and the real economy.
In real life, Sergey Nazarov fits the stereotype of a tech engineer, always wearing a T-shirt or plaid shirt. In an interview with Foresight News, he mentioned that he might seem a bit "weird" due to jet lag. Interestingly, he has an unusual curiosity about electronic devices, such as being concerned about the heat dissipation of laptops on the desk.
Sergey Nazarov's journey in blockchain began in 2011, when the blockchain industry was still in its infancy, with Bitcoin being the only existence. Nazarov initially encountered Bitcoin as a gaming enthusiast but was soon attracted by the decentralized concept behind Bitcoin. He realized that Bitcoin, as a global standard that did not require corporate support, had the potential to persist for the next 100 years, which was unprecedented in the digital currency history at that time.
With the rise of the concept of smart contracts, Nazarov saw the enormous potential of blockchain technology. He and his team chose not to compete with emerging platforms like Ethereum but decided to build an oracle network, a crucial infrastructure that did not exist at the time. The development of the oracle network provides a bridge that connects real-world data and systems to smart contracts, greatly expanding the application range of blockchain technology.
Nazarov emphasized that Chainlink plays an indispensable role in the rapid growth of DeFi (decentralized finance). With the support of Chainlink, the total value locked in DeFi surged from less than $100 million to over $200 billion at its peak. The services provided by Chainlink have become the industry standard, enabling more advanced smart contracts and providing a solid foundation for the development of DeFi.
When discussing Chainlink's latest technological advancements, Nazarov specifically mentioned the Chainlink Runtime Environment (CRE). This technology can coordinate multiple blockchain technologies, similar to the applications of Cobalt and Java in the financial sector. He believes the introduction of CRE marks an important step for Chainlink in the integration and application of blockchain technology.
Additionally, Chainlink has also made progress in privacy technology. Nazarov mentioned privacy managers and cross-chain privacy trading technologies, which are crucial for the integration of traditional financial systems with DeFi. By providing privacy protection, he stated that Chainlink enables more financial services to securely migrate to the blockchain.
Nazarov likened the CCIP (Cross-Chain Interoperability Protocol) that Chainlink has been promoting to the TCP/IP of the blockchain world. Just as TCP/IP unified the internet, CCIP provides a unified connection platform for different blockchains. Through CCIP, Chainlink simplifies and enhances the efficiency of cross-chain transactions and communications.
Nazarov also emphasized Chainlink's efforts in promoting the standardization of blockchain technology. He believes that standardization is key to the development of blockchain technology and a prerequisite for mass adoption. Chainlink is working with global regulators, financial institutions, and technology innovators to advance the standardization process of blockchain technology.
"We believe that through standardization, blockchain technology can better integrate into the existing financial system and bring more value to the global economy," said Nazarov.
Regarding the tokenization of real-world assets (RWA), Nazarov pointed out that unlike cryptocurrencies, RWAs need to provide proof of authenticity and existence. Chainlink's role in this aspect is to provide the necessary proof and identity verification, allowing RWAs to be tokenized and traded on the blockchain.
In addition, Nazarov discussed the application of AI technology in the Chainlink oracle network. He explained that AI excels in converting unstructured data into machine-readable structured data. Chainlink can run multiple AI models and compare their results to reach a consensus. This AI consensus mechanism is similar to how Chainlink handles price data, providing reliable data inputs for smart contracts.
Nazarov also shared some of his thoughts on the future development of blockchain technology. He believes that the development of blockchain technology is not just a technological iteration but a profound transformation involving finance, economics, and even social structures. He foresees that as blockchain technology develops, we will see a more open, transparent, and decentralized world.
"What we are building is not just technology, but a whole new economic model," said Nazarov. "Chainlink's mission is to be the bridge connecting traditional finance (TradFi) and decentralized finance (DeFi), allowing both to seamlessly integrate and jointly promote global economic development."
