Crypto: The New Chainlink Project Disrupts The Banking Game Rules

The blockchain oracle giant Chainlink has just unveiled a major innovation: the “Chainlink Runtime Environment”, a revolutionary framework aimed at creating a unified gateway 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 on November 16 its new framework “Chainlink Runtime Environment”, an ambitious architecture designed to seamlessly integrate traditional financial systems with blockchains.

This framework replaces and modernizes historical technologies like the COBOL language from 1959, which still handles 95% of transactions at ATMs today, as well as the Java Runtime Environment (JRE) from the 90s that powers current online banking.

The main objective is to drastically simplify the interaction between the thousands of existing financial systems, thereby creating a unique layer of abstraction. This approach will allow financial institutions to more easily adopt blockchain technologies without having to manage their underlying complexity.

This initiative is part of the continuation of the integration announced with SWIFT in October 2024, thus allowing banks to interact with blockchains via the standard interbank messaging protocol.

Privacy and interoperability at the heart of the device

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 CCIP (Cross-Chain Interoperability Protocol) enable companies to leverage 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. 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 enhance its oracles, particularly for use cases like real-time proof of reserves.

In summary, this major initiative by 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.