The blockchain oracle giant Chainlink has just unveiled a major innovation: the “Chainlink Runtime Environment”, a revolutionary framework aimed at creating a unified bridge between traditional finance and the blockchain universe. This technological advancement promises to radically transform the interaction between legacy banking systems and smart contracts.
Chainlink presents a framework to connect banks and crypto
Chainlink unveiled its new “Chainlink Runtime Environment” framework on November 16, an ambitious architecture designed to seamlessly integrate traditional financial systems with blockchains.
This framework innovative replaces and modernizes historic technologies such as the COBOL language from 1959, which still manages 95% of ATM transactions today, as well as the Java Runtime Environment (JRE) from the 90s which powers today's online banking .
The main objective is to drastically simplify the interaction between the thousands of existing financial systems, thereby creating a single abstraction layer. This approach will make it easier for financial institutions to adopt blockchain technologies without having to deal with their underlying complexity.
This initiative is a continuation of the integration announced with SWIFT in October 2024, thus allowing banks to interact with blockchains via the standard interbank messaging protocol.
Confidentiality and interoperability at the heart of the system
To meet the strict requirements of financial institutions, Chainlink has integrated advanced privacy features into its new framework. The Blockchain Privacy Manager and private transactions via the Cross-Chain Interoperability Protocol (CCIP) allow companies to operate public blockchain networks while protecting their sensitive data and trade secrets.
A pilot program conducted with SWIFT and UBS in November 2024 has already demonstrated the viability of the system for tokenized fund settlements. The promising results pave the way for wider adoption by the traditional banking sector.
The crypto platform is also exploring the integration of artificial intelligence to enrich its oracles, particularly for use cases such as proof of reserves in real time.
In short, this major initiative from Chainlink marks a decisive step in the convergence between traditional finance and blockchain. The success of the framework could significantly accelerate the adoption of blockchain technologies by global financial institutions.
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