Chainlink and how the blockchain uses AI

During the Hong Kong Fintech Week, we interviewed the Co-founder of Chainlink, Sergey Nazarov, with whom we talked, of course, about blockchain, but also about AI.

The new tools of Chainlink

The protocol Chainlink launched the Blockchain Privacy Manager a few weeks ago, a tool that is used to make transactions even more private.

Together with this tool, Chainlink has also recently announced the CCIP to execute cross-chain transactions protecting the privacy of sender and recipient thanks to the fact that it can be combined with the aforementioned blockchain tool privacy manager.

CCIP stands for Chainlink Crosschain Interoperability Protocol and is the only protocol that connects the public blockchains of Web3 with the private DLT (distributed ledger technology) of banks.

Chainlink and Swift: a close relationship

Chainlink has also started collaborating with Swift, and a few days ago the integration of the traditional payment system with blockchain technology moved to a production-ready phase.

For several years now, Chainlink has been working with SWIFT to create a connection between traditional SWIFT messages and blockchains. 

Nazarov explained that the system has moved from concept to pre-production, allowing financial institutions to begin testing in the real world and emphasized that the integration is now ready for use by institutional entities.

Chainlink and the future of DeFi

With all these new tools, the company aims to build a sort of ‘Internet of contracts’ to help DeFi and traditional financial institutions to unite in a single world and be increasingly faster.

Among the many innovations at Chainlink, there is also Deco, a system to have on-chain data while keeping users anonymous thanks to zero knowledge proof. 

In reality, Chainlink has been working on this system for years, but it will soon be available to the public in a test environment.

The relationship between blockchain and AI

During the press conference, the co-founder Sergey Nazarov explained that the company uses three artificial intelligence (AI) models to generate transactions on blockchain and compare the results: if the latter are the same, consensus is reached and the data goes on the blockchain.

To do this, Chainlink collaborates with the Swiss bank UBS, Swift, and other companies.

This system solves the so-called unstructured data problem, meaning that the lack of standardized formatting makes indexing, archiving, retrieval, and management of data a bull and bear task.