Cainlink recently announced its cross-chain interoperability protocol, with the goal of making it easier to send money between blockchains. However, co-founder Sergey Nazarov has broader ambitions, envisioning banks and financial institutions creating their own blockchains that are controlled or permissioned in some way. He believes this could bring a huge amount of value to crypto. The recently announced protocol allows for the transfer of tokens between chains and is currently being tested in collaboration with crypto projects like Synthetix and Aave. Nazarov explains that banks would want their own blockchains to have full control over their tokenized real-world assets. He also suggests that banks may choose to connect their private chains to public blockchains in the future, if regulations allow and if it presents more lucrative market opportunities.
Key Points:
– Cainlink’s cross-chain interoperability protocol aims to simplify money transfers between blockchains.
– Sergey Nazarov believes that banks will create their own blockchains to have control over their tokenized real-world assets.
– The protocol is currently being tested with crypto projects like Synthetix and Aave.
– Banks may choose to connect their private blockchains to public blockchains in the future for more market opportunities.
– If regulations permit, banks may see the benefits of connecting to public blockchains for higher returns.
Hot Take:
Cainlink’s cross-chain interoperability protocol has the potential to bridge the gap between private and public blockchains, allowing banks to have more control over their tokenized assets. This could lead to increased adoption of blockchain technology in the banking industry and ultimately drive the growth of the blockchain industry as a whole. However, the success of this integration will heavily depend on regulatory developments and the willingness of banks to explore new opportunities in the crypto space.
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