Chainlink leverages AI to bring on-chain market data

Chainlink has launched an initiative that combines AI, blockchain, and oracles to bring unstructured market data on-chain. To do this, the crypto analysis company has involved eight major financial institutions such as UBS, Franklin Templeton, and Sygnum Bank, and three partners from the blockchain ecosystem. 

Chainlink: combining AI, blockchain, and oracles to bring on-chain unstructured market data

Chainlink, the renowned crypto company, has launched an initiative to tackle the challenge of unstructured data for the financial sector. Here is how it is described on the official website:

“This initiative leverages cutting-edge artificial intelligence models and an institutional-grade Oracle infrastructure to create unified gold records of corporate action data that operate across multiple blockchains. Euroclear, Swift, UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank participated.”

In practice, Chainlink’s initiative aims to combine AI, blockchain, and oracles to create unified gold records of corporate action data that operate across multiple blockchains. 

To succeed in this endeavor, Chainlink has involved two financial and market infrastructures Euroclear and Swift, and six financial institutions such as UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank.

Not only that, the initiative also saw the participation of three partners from the blockchain ecosystem: Hyperledger Besu, Avalanche, and ZKsync. 

From what has emerged, the initiative has successfully demonstrated how Chainlink’s decentralized oracles can be used in combination with large language models (LLM) to validate and provide critical financial data on-chain. 

The LLMs used include ChatGPT 4o by OpenAI, Gemini 1.5 pro by Google, and Claude 3.5 sonnet by Anthropic. The Cross-Chain Interoperability Protocol (CCIP) by Chainlink was then used to securely move corporate action data onchain across various public and private blockchains.

Chainlink and its initiative that combines AI, blockchain, and oracles for corporate data on-chain

Essentially, the new initiative by Chainlink aims to address the lack of standardized and real-time data on corporate actions. 

In fact, these current inefficiencies in corporate action processes cost regional companies of investors, brokers, and custodians about 3-5 million dollars a year, while 75% of companies manually reconfirm deposit and exchange data. 

This is a situation that causes inconsistencies in the structure, format, terminology, timing, support, and standards of data dissemination. 

Here the Chainlink solution combines its oracles with LLMs to distribute near real-time data of corporate actions events on three blockchain networks. The new interoperable and unified golden ledger is the winning architecture for the management and dissemination of data on corporate actions. 

In this regard, Sergey Nazarov, co-founder of Chainlink, said:

“The combination of AI and oracles is a powerful tool for taking corporate action data and transforming it into highly reliable structured data. Transforming the various disconnected corporate action data into unified golden records on which hundreds of market participants can rely as a single and definitive source of truth is truly a huge step forward in the way financial markets handle critical and error-prone data. Solving this problem creates many advantages for asset managers, banks, and financial market infrastructures, which can be synchronized much faster than today, at a fraction of the costs and with a massive reduction in costly errors that affect the financial system.”

From data to the decentralized telecommunications sector

While now the Chainlink solution concerns the world of unstructured market data, at the beginning of this month, the company had launched the Cross-Chain Interoperability Protocol (CCIP) for the telecommunications sector.

In fact, in collaboration with the decentralized project World Mobile Token, the new CCIP protocol aims to improve cross-chain token exchange and staking within the World Mobile ecosystem. 

Specifically, with the support of Chainlink CCIP, World Mobile Token will be able to interact with some blockchains like Ethereum BNB Chain, Base, and Arbitrum. In this way, in addition to expanding the possibilities of token usage, it will be possible to increase adoption and scalability within the World Mobile ecosystem.