Latest / The Paul Barron Crypto Show / U.S. Dollar Dominance Tech Race🚨Chainlink Cofounder Sergey Nazarov INTERVIEW

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U.S. Dollar Dominance Tech Race🚨Chainlink Cofounder Sergey Nazarov INTERVIEW · The Paul Barron Crypto Show

• 0:05
  Speaker 1: Today we're going to be talking a little bit about
• 0:07
  Speaker 1: trad fy and DeFi, how all of this could be
• 0:10
  Speaker 1: coming together in the crypto markets just and also around
• 0:13
  Speaker 1: the world. We'll break it in with a great interview
• 0:15
  Speaker 1: for you guys. My name is Paul Barre, Welcome back
• 0:16
  Speaker 1: in the tech path. Joining me today today is Serga Nazarov,
• 0:19
  Speaker 1: who comes in as CEO of Chainlink. You guys are
• 0:21
  Speaker 1: seeing him out there many times. SERGEI, how are.
• 0:24
  Speaker 2: You doing well? Thank you for having me.
• 0:26
  Speaker 1: All right, So, what was it like setting next to
• 0:28
  Speaker 1: Trump in that room up there? Did you Was it
• 0:31
  Speaker 1: as fun? It seemed like it was. You guys were
• 0:34
  Speaker 1: having a good time in terms of discussion around the
• 0:36
  Speaker 1: future of crypto.
• 0:37
  Speaker 2: Yeah, many people commented how surreal it was that we
• 0:41
  Speaker 2: are at this stage in the industry's development. It's one
• 0:44
  Speaker 2: of those cases where you actually see the US government
• 0:46
  Speaker 2: move quickly to make a change, which is kind of uncommon.
• 0:51
  Speaker 2: That's the first time I've been part of something like that,
• 0:53
  Speaker 2: and I've seen that happen. But you know, you have
• 0:56
  Speaker 2: a whole new bunch of regulators. The old ones are out,
• 0:58
  Speaker 2: that new ones are in, and the Congress is very
• 1:02
  Speaker 2: positive and the executive branch is basically inviting you to
• 1:04
  Speaker 2: the White House. So it's like the rapidity of the shift, right.
• 1:10
  Speaker 2: This shift did not happen gradually like I see it
• 1:13
  Speaker 2: in other countries, because we work with many other governments
• 1:15
  Speaker 2: as well, and there it's much more gradual. In the US,
• 1:18
  Speaker 2: it was extremely rapid.
• 1:20
  Speaker 1: I want to talk about a little bit about where
• 1:24
  Speaker 1: the US dollar is in comparison with some other of
• 1:26
  Speaker 1: the global currencies out there. One of course, has been
• 1:29
  Speaker 1: the Chinese yuon and when you look at the bricks nations.
• 1:33
  Speaker 1: We've covered bricks on this show quite a bit. The
• 1:37
  Speaker 1: potential here now with the euon really flowing falling to
• 1:41
  Speaker 1: its lowest level for quite some time, the dollar could
• 1:44
  Speaker 1: kind of respond here. First of all, what are your
• 1:47
  Speaker 1: thoughts around how the global stage is being set that
• 1:51
  Speaker 1: could flow into the use of stable coins, cbdc's, etc.
• 1:55
  Speaker 1: Give me a kind of an insight there.
• 1:57
  Speaker 2: I think the US dollar generally seems to do well
• 1:59
  Speaker 2: when there's more and more global instability. I think it's
• 2:03
  Speaker 2: pretty correlated to various international and global instability events because
• 2:09
  Speaker 2: it's often viewed as a safe haven asset, so that
• 2:12
  Speaker 2: I think is part of what's striving this How this
• 2:15
  Speaker 2: will impact CBDCs and stable coins. I think CBDCs and
• 2:20
  Speaker 2: stable coins are just different transactional rails that are more
• 2:25
  Speaker 2: in the control of either the commercial bank in the
• 2:29
  Speaker 2: form of stable coins, or the fintech in the form
• 2:32
  Speaker 2: of stable coins, or the government in terms of central
• 2:35
  Speaker 2: bank digital currencies. And so I think the trend towards
• 2:40
  Speaker 2: central bank digital currencies and stable coins is part of
• 2:43
  Speaker 2: GLO deglobalization.
• 2:45
  Speaker 1: Yeah, I think you're right. I think the key here
• 2:47
  Speaker 1: is is the amount of adoption that we're starting to see. Obviously,
• 2:51
  Speaker 1: the United States could lead the way with that with
• 2:54
  Speaker 1: some stable coin regulation, especially getting into maybe the banks
• 2:59
  Speaker 1: starting to I think become much more familiar and also
• 3:02
  Speaker 1: trusting of where that market is going. I want to
• 3:05
  Speaker 1: get to that in a second. I know that chain
• 3:08
  Speaker 1: Link has partnered with Swift in the past. There is
• 3:10
  Speaker 1: a countdown to the ISO two hundred and twenty two
• 3:15
  Speaker 1: coming soon. I think it's later this fall. Tell us
• 3:18
  Speaker 1: a little about what that means for chain Link and
• 3:22
  Speaker 1: are you guys set for being able to hit that deadline.
• 3:25
  Speaker 1: I think it's in November.
• 3:26
  Speaker 2: Yeah, Yeah, we're set. We already work with I saw
• 3:29
  Speaker 2: twenty oh two two messages now as well as the
• 3:31
  Speaker 2: old messages, so we work with the old messages to
• 3:34
  Speaker 2: fifteen and twenty oh two two. We've been working with
• 3:36
  Speaker 2: twenty oh two two for some time and working with
• 3:39
  Speaker 2: Swift now for some time, well over seven years now,
• 3:44
  Speaker 2: and that's continuing and I think we're getting deeper and
• 3:47
  Speaker 2: deeper integration progress there. And yeah, we're set up for
• 3:51
  Speaker 2: twenty oh two two. I think twenty oh two two
• 3:53
  Speaker 2: is really more of a big shift for the banks
• 3:56
  Speaker 2: and others that were on the previous fifteen fifteen standard, the.
• 4:00
  Speaker 1: Swift UBS Asset management and obviously you guys partnering on this,
• 4:06
  Speaker 1: this was a pilot. Has this rolled out now? Is
• 4:09
  Speaker 1: this like a full on program now?
• 4:11
  Speaker 2: It hasn't rolled out into production yet, but it's on
• 4:14
  Speaker 2: track to get to that. And we're working continuing to
• 4:17
  Speaker 2: work with UBS and Swift and actually many other counterparties
• 4:22
  Speaker 2: now that are also interested in both being part of
• 4:25
  Speaker 2: a transact that transaction and other transactions that work that way.
• 4:30
  Speaker 2: And generally this has been our view that all of
• 4:32
  Speaker 2: these existing systems like Swift don't need to really go away,
• 4:37
  Speaker 2: they just need to be made compatible with blockchains. I
• 4:40
  Speaker 2: think eventually you'll actually be able to instruct the stable
• 4:43
  Speaker 2: coin movement on a chain through a Swift message, for example.
• 4:48
  Speaker 2: And so this is the kind of work that we're
• 4:49
  Speaker 2: doing with them where we allow the Swift signing infrastructure
• 4:55
  Speaker 2: and the Swift ISO twenty two standards, and even the
• 4:59
  Speaker 2: Swift routing infrastructure and messaging infrastructure to be reused for
• 5:03
  Speaker 2: the purposes of signing blockchain transactions and interacting with blockchains,
• 5:09
  Speaker 2: because I don't feel that people fully understand what's Swift is.
• 5:13
  Speaker 2: It's actually a member owned kind of technology cooperative that
• 5:18
  Speaker 2: redistributes its profits back to its owners. So it's actually
• 5:22
  Speaker 2: much more decentralized than people think, and it's actually not
• 5:26
  Speaker 2: as for profit as people think. And it's basically the
• 5:29
  Speaker 2: world's largest private key signing infrastructure that signs the most
• 5:33
  Speaker 2: value moving between the world's banks. It's a good way
• 5:36
  Speaker 2: to sign for transactions, and they sign on the transactions
• 5:42
  Speaker 2: based on their usage of this ISO twenty two to
• 5:45
  Speaker 2: two and other isostandards, and those standards are kind of
• 5:48
  Speaker 2: like the English language of the financial world to describe
• 5:51
  Speaker 2: various transactions. So you can keep using all of that
• 5:55
  Speaker 2: infrastructure if you can make it compatible with blockchains. That
• 6:00
  Speaker 2: kind of the direction, and that's what you see in
• 6:02
  Speaker 2: that previous pilot.
• 6:03
  Speaker 1: Yeah, that's the well. And I think that also starts
• 6:06
  Speaker 1: to lead to really a new financial architecture that most
• 6:10
  Speaker 1: likely will start to flow out there within a lot
• 6:12
  Speaker 1: of these blockchains going forward. If you look at the
• 6:15
  Speaker 1: dollar dominance in comparison to other currencies, and you compare
• 6:20
  Speaker 1: to what's happening right now with China's digital R and B,
• 6:24
  Speaker 1: that in itself starts to shift things around a little bit.
• 6:28
  Speaker 1: What is your opinion of and what first of all,
• 6:31
  Speaker 1: what does this mean? You know, when you look at
• 6:33
  Speaker 1: just how currencies are moving globally, especially across swift, what
• 6:37
  Speaker 1: does this mean overall? With this shift in the strategy
• 6:41
  Speaker 1: of China.
• 6:42
  Speaker 2: Blockchain technology is basically the leading transactional technology of the
• 6:48
  Speaker 2: next let's say, fifty years, and so it's very natural
• 6:52
  Speaker 2: that PBOC chose to use that technology. This digital R
• 6:58
  Speaker 2: and B I think comes out of their main Lange
• 7:00
  Speaker 2: division and it's already been being used within mainland China
• 7:04
  Speaker 2: for many transactions internally, so it's not completely new in
• 7:09
  Speaker 2: the sense that they're just launching something. I think it's
• 7:11
  Speaker 2: something they've been using in mainland China for I think
• 7:14
  Speaker 2: a few years now. Even the nearest thing that I've
• 7:16
  Speaker 2: seen so far of how the people People's Bank of
• 7:21
  Speaker 2: China looks at moving value and doing transactions internationally was
• 7:25
  Speaker 2: something called Mbridge. Mbridge was done in the Bank of
• 7:29
  Speaker 2: International Settlements program, and then Mbridge started to get closer
• 7:32
  Speaker 2: to launch, and basically they went in the direction of
• 7:36
  Speaker 2: I think, spinning it out into a standalone thing, and
• 7:40
  Speaker 2: there was a whole big thing there where you know,
• 7:43
  Speaker 2: the West. I don't think fully new if they wanted
• 7:45
  Speaker 2: wanted Mbridge and then put the People's Bank of China
• 7:47
  Speaker 2: did want mbriage, and I think they're now kind of
• 7:51
  Speaker 2: still in the process of resolving that. So if I
• 7:54
  Speaker 2: have to guess what one of the nearest term technologies
• 7:56
  Speaker 2: is for these international transactions from the historical direction and
• 8:01
  Speaker 2: developments that they've done outside of mainland China, the one
• 8:07
  Speaker 2: that comes to mind is Mbridge. Also, yeah, the HKMA
• 8:12
  Speaker 2: also has other projects underway, but I would think those
• 8:15
  Speaker 2: would be the two likely candidates for the technologies used here.
• 8:19
  Speaker 2: It would be whatever comes out of the HKMA, Because
• 8:22
  Speaker 2: Hong Kong is kind of seen by mainland China as
• 8:25
  Speaker 2: the window to the rest of the world or mbridge.
• 8:28
  Speaker 2: An mbridge, for example, was made out of the Hong
• 8:31
  Speaker 2: Kong office of the BIS, the Bank of International Settlement.
• 8:35
  Speaker 2: So I think whatever you're going to see is probably
• 8:39
  Speaker 2: going to start coming out of Hong Kong, either the
• 8:42
  Speaker 2: Central Bank there, the HKMA, or you might see resurgence
• 8:46
  Speaker 2: in mbridges plants. That would be my guess, and how
• 8:49
  Speaker 2: that develops technically.
• 8:50
  Speaker 1: That would be well, that was could change things up
• 8:53
  Speaker 1: quite a bit when you look at just the involvement
• 8:56
  Speaker 1: of bricks and m bridge over this past twelve months.
• 9:00
  Speaker 1: So maybe the strategies might shift around a little bit
• 9:03
  Speaker 1: as things starts to develop. And I think that's what
• 9:04
  Speaker 1: we're dealing with right now. Even when you look at
• 9:07
  Speaker 1: the US government, which has started to see a lot
• 9:09
  Speaker 1: of new innovation almost state siding now where so many
• 9:14
  Speaker 1: country or I should say blockchains are starting to build
• 9:16
  Speaker 1: here in the United States, so some great opportunities. Stable coins,
• 9:20
  Speaker 1: of course, are leading the way.
• 9:22
  Speaker 2: Serge.
• 9:22
  Speaker 1: When you look at stable coins and you compare to
• 9:24
  Speaker 1: what's happening right now, obviously the growth of stable coins
• 9:28
  Speaker 1: you can kind of see here that's Tether, obviously, USDC,
• 9:31
  Speaker 1: et cetera. The launch of RLUSD with Ripple, many of
• 9:35
  Speaker 1: them going PayPal having their own one. Do you think
• 9:38
  Speaker 1: that we will enter maybe a technology war when it
• 9:43
  Speaker 1: comes to stable coins with countries like China? What are
• 9:46
  Speaker 1: your thoughts on that.
• 9:48
  Speaker 2: I don't think it's going to be a technology war
• 9:49
  Speaker 2: because stable coins are relatively straightforward technology, and the cost
• 9:54
  Speaker 2: and complexity of blockchain operations and the cost and complexity
• 10:00
  Speaker 2: of having your own blockchain for your own stable point
• 10:02
  Speaker 2: if you don't want to base your stable coin on
• 10:05
  Speaker 2: someone else's blockchain, the cost of that is also going down.
• 10:09
  Speaker 2: So I don't think it'll be some kind of technical competition.
• 10:13
  Speaker 2: I think it'll be a competition of market adoption and
• 10:17
  Speaker 2: essentially distribution and essentially the settlement mechanism for blockchain based transactions,
• 10:25
  Speaker 2: just like US dollar denominated contracts are the method of
• 10:29
  Speaker 2: settlement for non blockchain transactions. And this is kind of
• 10:33
  Speaker 2: what we've been saying for years, is that all of
• 10:35
  Speaker 2: the world's value and transactions will migrate into the blockchain
• 10:38
  Speaker 2: format and inside of the blockchain format for everything from
• 10:43
  Speaker 2: derivatives to commodities to equities to global trade to insurance.
• 10:46
  Speaker 2: You right now have a big lead in what stable
• 10:49
  Speaker 2: coins are denominated in because you have this kind of
• 10:53
  Speaker 2: tailwind from the traditional world saying I want to nominate
• 10:55
  Speaker 2: things in the US dollar, and so I want a
• 10:59
  Speaker 2: dollar denominated mechanism to you know, trade dollar against some
• 11:03
  Speaker 2: cryptocurrency or some tokenized fund or something. But I think
• 11:09
  Speaker 2: to two things will happen. One thing will be what
• 11:13
  Speaker 2: are the legally required methods of contract settlement in global trade?
• 11:18
  Speaker 2: So I think that there can be certain levels of
• 11:21
  Speaker 2: control over how contracts need to be denominated in global
• 11:25
  Speaker 2: trade transactions. And then I think what assets are issued
• 11:32
  Speaker 2: inside of what system gives that system more leverage over
• 11:36
  Speaker 2: the currency used to buy the assets. So if all
• 11:40
  Speaker 2: if all the tokenized assets after stable coins, if all
• 11:43
  Speaker 2: the tokenized funds full, the tokenized real estate full, the
• 11:46
  Speaker 2: tokenized commodities full, the tookenized equities, if all the tokenized
• 11:51
  Speaker 2: non currency, non crypto things, which is by the way,
• 11:54
  Speaker 2: the majority of everything, if all of that gets tokenized
• 11:59
  Speaker 2: predominant outside the US, then people forcing others to buy
• 12:06
  Speaker 2: and settle and purchase those assets in non US dollar
• 12:11
  Speaker 2: denominated payment methods on a blockchain. The likelihood of that rises.
• 12:17
  Speaker 2: If all the assets, the best assets, the best tokenized funds,
• 12:21
  Speaker 2: the best tokenized equities, best tokenized commodities, best tokenized versions
• 12:26
  Speaker 2: of every asset is issued from the US financial system,
• 12:31
  Speaker 2: then the likelihood that the US dollar gets used to
• 12:34
  Speaker 2: buy them goes up very high and much much higher
• 12:37
  Speaker 2: than otherwise. And really even the US financial system could
• 12:41
  Speaker 2: gain market share in that scenario. And so this is
• 12:44
  Speaker 2: the scenario that we've painted to people in Washington and
• 12:48
  Speaker 2: explained to them. This is also the scenario of explained
• 12:50
  Speaker 2: to people in other parts of the world. As more
• 12:53
  Speaker 2: and more global trade, as more and more assets go
• 12:55
  Speaker 2: on chain, and more and more transaction volume is done
• 12:58
  Speaker 2: on chain, governments will compete with each other for the
• 13:03
  Speaker 2: use of their currency as the method of settlement on
• 13:06
  Speaker 2: a blockchain, and that will be a new arena in
• 13:09
  Speaker 2: which they need to win. And I think the US
• 13:13
  Speaker 2: has not yet fully started to compete in that arena.
• 13:16
  Speaker 2: I think they are still focused on cryptocurrencies and bitcoins
• 13:21
  Speaker 2: and market structure and stable coin legislation, the first version
• 13:25
  Speaker 2: of stable coins legislation. I think if they're able to
• 13:28
  Speaker 2: do that, if they're able to make market structure go
• 13:31
  Speaker 2: through the legislative process before August, before the August recess,
• 13:35
  Speaker 2: and if they're able to get the stable coin bill
• 13:38
  Speaker 2: passed well before the state the August recess, then I
• 13:42
  Speaker 2: think they'll turn their attention more and more to real
• 13:44
  Speaker 2: world asset issuance. And I think their fundamental goal should
• 13:48
  Speaker 2: be to make all the highest quality on chain assets
• 13:52
  Speaker 2: initially issued in the US system, and if they're able
• 13:55
  Speaker 2: to do that, then all the wrapping of those assets
• 13:59
  Speaker 2: won't don't matter as much. So I think everyone is
• 14:03
  Speaker 2: a little bit confused on the need for all the
• 14:05
  Speaker 2: teams to be in the US. What actually matters is
• 14:08
  Speaker 2: that the underlying assets or the first tokenized version of
• 14:12
  Speaker 2: any asset is issued in the US financial system, and
• 14:16
  Speaker 2: then the ability to wrap that asset is not as critical.
• 14:21
  Speaker 2: People in Dubai or people in Singapore can wrap that
• 14:23
  Speaker 2: asset and repackage it and send it into their ecosystem.
• 14:27
  Speaker 2: What's important is that the first tokenized iteration of something
• 14:32
  Speaker 2: or the underlying asset is in the US system or
• 14:35
  Speaker 2: in whatever financial system you like. That is the key
• 14:39
  Speaker 2: competitive dimension that everyone will begin to compete on more
• 14:42
  Speaker 2: and more. That will actually drive our industry's growth because
• 14:47
  Speaker 2: they will want more and more of high quality assets
• 14:50
  Speaker 2: in their financial ecosystem to attract more and more payments
• 14:55
  Speaker 2: in the currency that they prefer those assets to be
• 14:58
  Speaker 2: transacted against.
• 15:00
  Speaker 1: Well, I think that's an excellent argument there. My question is,
• 15:03
  Speaker 1: I don't know if you've got a chance. Did you
• 15:05
  Speaker 1: get a chance to talk to David Sachs when you
• 15:07
  Speaker 1: were in DC, because I think obviously Sachs would understand
• 15:10
  Speaker 1: that you put that in combination with Scott Bessant, who
• 15:13
  Speaker 1: also would understand that from a hedge fund standpoint, and
• 15:16
  Speaker 1: especially with what Wall Street is trying to do, if
• 15:20
  Speaker 1: they could accelerate that, maybe that vision, maybe we could
• 15:24
  Speaker 1: see something go in front of Congress that would start
• 15:26
  Speaker 1: to accelerate the tokenization of a lot of real world assets, which,
• 15:30
  Speaker 1: to your point, is critical right now for this to
• 15:34
  Speaker 1: kind of succeed. Did you get any kind of feedback
• 15:37
  Speaker 1: from DC when you mentioned that.
• 15:39
  Speaker 2: Yeah, I got a lot of positive feedback from that
• 15:41
  Speaker 2: in DC and Dubai and Singapore and Hong Kong and
• 15:45
  Speaker 2: many of the places. We've discussed this topic with various
• 15:48
  Speaker 2: central banks and regulators more recently in the US. But
• 15:53
  Speaker 2: to answer your question, yes, in DC, I think people
• 15:56
  Speaker 2: are starting to understand this, and the game. The game
• 16:01
  Speaker 2: that matters here is not which country has the most
• 16:04
  Speaker 2: cryptocurrency penetration for their consumer user base. It's maybe partly
• 16:10
  Speaker 2: which country has a good cryptocurrency reserve in addition to
• 16:14
  Speaker 2: a good goal reserve. But what it is mainly is
• 16:18
  Speaker 2: which country gains market share for its financial system on
• 16:25
  Speaker 2: the basis of that financial system issuing the highest quality
• 16:28
  Speaker 2: tokenized everything. Because the new transactional environment is the blockchain
• 16:34
  Speaker 2: based transactional environment. So I do think people in DC
• 16:38
  Speaker 2: are starting to understand this. I think the problem for
• 16:41
  Speaker 2: folks in DC is that they're moving extremely quickly to
• 16:46
  Speaker 2: catch up, and they are moving extremely quickly, which which
• 16:49
  Speaker 2: everyone in the United States as a citizen and everyone
• 16:54
  Speaker 2: that's interested in crypto generally should be very positive about.
• 16:58
  Speaker 2: Because the US is what's known as a superregulator who
• 17:02
  Speaker 2: is followed by other regulators, and so if the US
• 17:06
  Speaker 2: does these things, then the facto becomes the way the
• 17:09
  Speaker 2: world operates, because even though there's deglobalization happening, the US
• 17:14
  Speaker 2: is still kind of the superregulator that the majority of
• 17:18
  Speaker 2: these other key regulators admitted or not, they follow their
• 17:22
  Speaker 2: behavior because they want to be compatible with the US
• 17:25
  Speaker 2: financial systems. So I think they're in a mode where
• 17:28
  Speaker 2: they're very very rapidly doing the work that other geographies
• 17:32
  Speaker 2: have done over two or three years in three to
• 17:36
  Speaker 2: six months. Right, There's only so many issues that people
• 17:41
  Speaker 2: in DC can focus on or actually or actually process
• 17:46
  Speaker 2: at any one time, and stable coin legislation and market
• 17:51
  Speaker 2: structure about security commodity differences is basically the bandwidth limit
• 17:58
  Speaker 2: of what you know that place can process about this.
• 18:02
  Speaker 2: I think there is a way to get more about
• 18:04
  Speaker 2: real world asset tokenization and institutional grade tokenization from the
• 18:09
  Speaker 2: US system into the Market Structure bill, which is something
• 18:12
  Speaker 2: we've discussed with a few of the folks working on that.
• 18:15
  Speaker 2: In stable coins, there's still some space to improve proof
• 18:19
  Speaker 2: of reserves and to make sure that you're proving things
• 18:22
  Speaker 2: on chain, which is something we're very familiar with.
• 18:25
  Speaker 1: Let's end up here on doge because we hear Elon
• 18:29
  Speaker 1: talk about saving you know, government abuse and the issues
• 18:34
  Speaker 1: that they've found throughout the American government, and he mentions
• 18:39
  Speaker 1: the idea of transparency. As we know on our show
• 18:42
  Speaker 1: that means blockchain, or you would think that that would
• 18:44
  Speaker 1: mean blockchain. Can those be done correctly without the use
• 18:49
  Speaker 1: of blockchain. What are your thoughts.
• 18:52
  Speaker 2: I think blockchains and oracle networks and smart contracts are
• 18:55
  Speaker 2: a tool to resolve various trust issues, fraud issues, and
• 19:01
  Speaker 2: the kind of manipulation of data, manipulation of logs, manipulation
• 19:07
  Speaker 2: of voting records issues. So I think at the end
• 19:11
  Speaker 2: of the day, when you say can DOGE be done
• 19:14
  Speaker 2: without blockchains, I think there's a large percentage of what
• 19:17
  Speaker 2: doge wants to do that doesn't have anything to do
• 19:19
  Speaker 2: with blockchains, But then they will encounter specific problems where
• 19:25
  Speaker 2: blockchains and oracle networks and smart contracts are very effective
• 19:29
  Speaker 2: tools for creating transparency that everyone can trust because they
• 19:33
  Speaker 2: know that no one can modify or manipulate it, for
• 19:36
  Speaker 2: creating verification of key aspects of people's budgets, of how
• 19:41
  Speaker 2: they're spending money, of whether certain things are being followed
• 19:44
  Speaker 2: through on, and also for the security of various key
• 19:48
  Speaker 2: records like voter records, cybersecurity logs, all kinds of key
• 19:53
  Speaker 2: pieces of information that if you were to be able
• 19:56
  Speaker 2: to manipulate them, you would create, you know, a kind
• 19:59
  Speaker 2: of ha in that category of the government. So I
• 20:05
  Speaker 2: think it's going to be all three of those things.
• 20:06
  Speaker 2: I think it's going to be creating its parency, it's
• 20:09
  Speaker 2: going to be creating a certain level of accountability for spending,
• 20:14
  Speaker 2: and it's going to be protecting certain key records, whether
• 20:19
  Speaker 2: that's voting or logs for cybersecurity. All of those use
• 20:24
  Speaker 2: cases are very attractive, I think to them.
• 20:26
  Speaker 1: Yeah, for sure, I want to end up here on
• 20:29
  Speaker 1: your twenty twenty five roadmap. The potential for chain link
• 20:33
  Speaker 1: to continue the standard for unchained finance. Anything big happening
• 20:37
  Speaker 1: the rest of the year that you can share.
• 20:40
  Speaker 2: Yeah, Yeah, there's a lot of big things happening this
• 20:42
  Speaker 2: year because the capital markets folks are really starting to
• 20:46
  Speaker 2: adopt this. In mass we now have calls with basically
• 20:51
  Speaker 2: the most senior people at these banks that report directly
• 20:54
  Speaker 2: to the CEOs. They're taking this seriously because they see
• 20:58
  Speaker 2: the shift in the US regulatory a system that's in
• 21:01
  Speaker 2: the US. Inside the US, you see continued movement like
• 21:04
  Speaker 2: that pilot with UBS and Swift that you showed that's
• 21:07
  Speaker 2: going to go on to do something I think meaningful,
• 21:11
  Speaker 2: and so we're kind of going towards more and more
• 21:15
  Speaker 2: real world adoption in the capital markets. That's going to
• 21:20
  Speaker 2: be a set of big developments. You know, I'm hopeful
• 21:23
  Speaker 2: that that UBS Swift pilot will will move forward towards real,
• 21:26
  Speaker 2: real world adoption. I'm hopeful about a lot of our
• 21:30
  Speaker 2: engagements with people with big banks institutions in Asia, and
• 21:33
  Speaker 2: I'm increasingly hopeful with the US, very positive now on
• 21:36
  Speaker 2: the US adoption. They're all doing the behaviors that we
• 21:41
  Speaker 2: kind of expected, where they need data, they need identity,
• 21:45
  Speaker 2: they need connectivity across chains, but they don't really have
• 21:49
  Speaker 2: in many cases the ways to solve those problems in
• 21:52
  Speaker 2: a way that will work for everyone in the transaction.
• 21:55
  Speaker 2: So if they can solve it for their end, they
• 21:58
  Speaker 2: can't do it in a way that they can prove
• 22:00
  Speaker 2: to the other party that they did it in a
• 22:02
  Speaker 2: reliable way. And so this is basically what shain link does.
• 22:05
  Speaker 2: What chain link does is even if you could build
• 22:08
  Speaker 2: something internally and get some data there, or connect something
• 22:12
  Speaker 2: or prove some identity, how can you prove to others
• 22:15
  Speaker 2: that you did that correctly? And so what chain link
• 22:18
  Speaker 2: does is it a eliminates the need for you to
• 22:20
  Speaker 2: do any of that because it does it for you.
• 22:23
  Speaker 2: But b it does it in a way that you
• 22:24
  Speaker 2: can prove that to the regulator. You can prove that
• 22:27
  Speaker 2: to the counterparty that you do in the transaction with,
• 22:30
  Speaker 2: you can prove that to the market, you can prove
• 22:32
  Speaker 2: that to the rating agencies, you can prove that to
• 22:35
  Speaker 2: your own internal systems, and so that on chain standard
• 22:40
  Speaker 2: is evolving. One of the more exciting things that we're
• 22:43
  Speaker 2: still on track for as of now is the chain
• 22:46
  Speaker 2: Link runtime environment. So the chain Link run time environment
• 22:49
  Speaker 2: is actually an entire virtual machine where you are able
• 22:54
  Speaker 2: to compose smart contracts across multiple chains together with multiple oracles.
• 23:00
  Speaker 2: Before chain Link and at the time of making chain Link,
• 23:03
  Speaker 2: we understood that the definition of a smart contract is
• 23:07
  Speaker 2: evolving beyond just one piece of code on one chain.
• 23:11
  Speaker 2: A smart contract now is multiple pieces of code on
• 23:14
  Speaker 2: one chain, multiple pieces of code on other chains, multiple
• 23:19
  Speaker 2: Oracle networks, one Oracle network for data, one Oracle network
• 23:22
  Speaker 2: for identity, another Oracle network another, many Oracle networks for
• 23:25
  Speaker 2: the cross chain side. So your definition of a smart
• 23:29
  Speaker 2: contract has gone from a single piece of code on
• 23:31
  Speaker 2: a single chain to many pieces of codes on many
• 23:34
  Speaker 2: pieces of code on many chains, and many Oracle networks
• 23:37
  Speaker 2: running many other pieces of code related to specific outcomes
• 23:40
  Speaker 2: and events, and so chain Link provides over a thousand
• 23:44
  Speaker 2: of these production on chain oracle networks. But the challenge
• 23:49
  Speaker 2: is not just generating the networks that provide you the
• 23:52
  Speaker 2: identity or the data or the connectivity or the swift
• 23:55
  Speaker 2: integration or whatever else you need to make the contract work.
• 23:59
  Speaker 2: The challenge after you have those networks in those building
• 24:02
  Speaker 2: blocks is how do you write a single piece of
• 24:05
  Speaker 2: code to compose them into a into into a working
• 24:09
  Speaker 2: contract that operates across the worical networks, across the chains,
• 24:12
  Speaker 2: utilizing the different A dainty sources, the different data providers,
• 24:15
  Speaker 2: the different swift transaction methods that you want to utilize.
• 24:20
  Speaker 2: And so that's what CR does and it's something.
• 24:24
  Speaker 1: So how close are you on that, serga? I mean,
• 24:26
  Speaker 1: because that seems to be one of the kingpins of
• 24:29
  Speaker 1: adoption for the banking system. You know, you look at
• 24:32
  Speaker 1: CCIP in general as an on rank on ramp for
• 24:36
  Speaker 1: banks in general. This is do you think this could
• 24:39
  Speaker 1: happen this year? Do you feel like we could have
• 24:41
  Speaker 1: early stage on ramps designed within the banking architecture as
• 24:46
  Speaker 1: we know it, Whether it's Chase, Wells, Fargo, some of
• 24:49
  Speaker 1: those companies that could be rolling into this, Could it
• 24:52
  Speaker 1: be as fast as this this year twenty twenty five.
• 24:55
  Speaker 2: I think it's possible, yes, because with CRE, we have
• 24:57
  Speaker 2: it in pridive private beta now and at the end
• 25:00
  Speaker 2: of last year, we actually did a presentation at CYBOST
• 25:04
  Speaker 2: where we built a swift workflow on top of CRE.
• 25:08
  Speaker 2: So the demo that we did at CYBOST the Big
• 25:11
  Speaker 2: Swift conference last year, that demo was running on top
• 25:14
  Speaker 2: of CRI already at the end of last year, and
• 25:17
  Speaker 2: we are now showing CRE to many of the top
• 25:20
  Speaker 2: institutional partners that we have. The reception has been very
• 25:24
  Speaker 2: positive by those partners. In these early kind of private
• 25:27
  Speaker 2: beta stages, they're giving us feedback discussing them the different
• 25:31
  Speaker 2: features and capabilities with us, and I think the early
• 25:35
  Speaker 2: version of CRE will have some of the core functionality
• 25:38
  Speaker 2: that you do need to build key use cases, hopefully
• 25:42
  Speaker 2: something like a tokenized fund that can go a cross chain,
• 25:46
  Speaker 2: and some other capabilities. I mean, we're still defining the
• 25:49
  Speaker 2: final capabilities that will be secure and reliable at the
• 25:52
  Speaker 2: time of launch. But at the end of the day,
• 25:56
  Speaker 2: our goal right now is still to launch CR into
• 25:58
  Speaker 2: general availability and usage this year. That is the goal
• 26:03
  Speaker 2: that was that last year and that's still the goal
• 26:05
  Speaker 2: that we have for this year. So I can see
• 26:08
  Speaker 2: that because we're the conversation about it and being adopted.
• 26:12
  Speaker 1: Now, yeah, that's very very big news. So congrats to
• 26:16
  Speaker 1: everything you guys are doing. I feel like we could
• 26:18
  Speaker 1: dive in a lot deeper on a chain link. I
• 26:21
  Speaker 1: know we don't have time today, we definitely want to
• 26:23
  Speaker 1: get you back on. I was just looking at an
• 26:25
  Speaker 1: array of use cases for many of our audience members.
• 26:28
  Speaker 1: Maybe you guys don't know completely what chain link is
• 26:31
  Speaker 1: all about. Go to their website. Just go to chain
• 26:33
  Speaker 1: that link and you can kind of learn a little
• 26:35
  Speaker 1: bit more about it. Asset tokenization, We've kind of touched
• 26:37
  Speaker 1: on financial services, which is where I think the magic
• 26:41
  Speaker 1: could really be happening with chain links. So congrats to
• 26:44
  Speaker 1: everything you're doing. We definitely want to get back get
• 26:46
  Speaker 1: you back on to dive a little deeper, Surgey. So
• 26:49
  Speaker 1: thanks for coming in today. We appreciate it.
• 26:51
  Speaker 2: Thank you for having me.
• 26:52
  Speaker 1: All right, you guys, if you're not part of the
• 26:54
  Speaker 1: Diamond Circle, this is our own private email group. You
• 26:57
  Speaker 1: guys can be part of that. Also, if you're not
• 26:59
  Speaker 1: in our telegram, you're jumping in that as well. I'm
• 27:01
  Speaker 1: in there every day chatting with you guys about what
• 27:04
  Speaker 1: the markets are doing, different kind of technologies, a lot
• 27:06
  Speaker 1: of the new projects that come out within the marketplace.
• 27:09
  Speaker 1: Make sure and use our link down below. We only
• 27:11
  Speaker 1: have one Telegram group, so don't get scammed or anything
• 27:14
  Speaker 1: out there. Just use that one. Follow me on x
• 27:16
  Speaker 1: at Paul Barren. We'll catch you next time right here
• 27:18
  Speaker 1: on tech Path