According to Cointelegraph, Chainlink co-founder Sergey Nazarov said at the TOKEN49 conference in Singapore that the value of real-world assets (RWA) will surpass cryptocurrencies on Web3 in the next few years. This value flow will significantly change the nature of the blockchain industry.
Nazarov believes that traditional finance (TradFi) will become the largest customer of decentralized finance (DeFi). Chainlink's Cross-Chain Interoperability Protocol (CCIP) will play a key role in the emerging Internet of Contracts that connects central bank digital currencies, asset chains, consortium chains, and public blockchains.
The Chainlink oracle network already powers much of DeFi, with $15.49 trillion in transaction value achieved since 2022. In order for TradFi to use blockchain technology, it needs access to a variety of data, including real-time data, for smart contracts to function properly.
CCIP allows users to conduct delivery-to-payment transactions using stablecoins without the need to integrate a large number of chains. Through programmable token transfers, value and data can be included in a single transaction.
Nazarov noted that while TradFi has "decades of systems" to cross, a single standard is ideal. He mentioned the SWIFT network, whose large user base uses a single standard. The next stage is how to get the TradFi ecosystem to properly utilize these technologies so that its value eventually flows into DeFi.
In addition, the legal barriers between TradFi and Web3 are gradually being reduced, especially in Asia and the Middle East. When all the problems are solved, trillions of dollars will flow into Web3.
