As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving digital asset landscape, I must say that Chainlink’s latest move to revolutionize corporate action data using AI and decentralized oracle technology has piqued my interest significantly.
As a researcher, I have recently come across an exciting development by Chainlink. They’ve pioneered the use of artificial intelligence (AI) and decentralized oracle technology to establish an on-chain database for corporate actions, as per their announcement on October 21st.
The pilot aims to utilize “the synergy of recent developments in artificial intelligence, oracles, and blockchain technology to tackle the issue of inconsistent and outdated information about corporate activities,” according to Chainlink.
As an analyst, I can share that by implementing data oracles alongside various large-scale AI language models, we’ve discovered a method to access raw, unverified, and frequently hard-to-reach off-chain data automatically. This data is then converted into real-time digital format, providing us with near instant access.
Corporate action information, encompassing items like mergers, dividends, and stock splits, poses one of the most intricate challenges with unorganized data within the financial sector, according to Chainlink’s report on their new project.
According to the report, the data was originally provided in easily understandable formats for humans such as PDF documents and news bulletins. This resulted in a disjointed information environment marked by inconsistent timeframes for data updates, multiple sources of similar data, and the need for extensive cleaning to ensure accuracy.
Each year, these inefficiencies are estimated to cost investors, brokerages, and custodians between 3 million and 5 million dollars, as suggested by Chainlink.
In collaboration with various financial institutions like Franklin Templeton, SWIFT, UBS, and blockchain networks including Avalanche and zkSync, Chainlink successfully executed a pilot phase, as stated in the official announcement.
According to Mark Garabedian, Wellington Management’s director of digital assets & tokenization strategy, by using AI and Chainlink oracles, we can streamline many tasks, leading to a substantial improvement in operational efficiency and cost savings potential.
In simpler terms, services like Chainlink act as bridges between blockchain platforms and outside data providers, such as financial market information.
Chainlink has been exploring various ways oracles can aid institutional financial markets.
On October 2nd, Chainlink teamed up with Taurus, an organization specializing in digital asset infrastructure, for the purpose of simplifying the process of tokenizing assets for institutions.
As a crypto investor, I’m excited about this collaboration that’s all about boosting the use of digital assets within institutional settings. The key is enhancing data clarity, ensuring seamless cross-platform transactions, and prioritizing robust security measures.
21.co, the parent company behind cryptocurrency asset manager 21Shares, revealed on September 23rd that they will incorporate Chainlink’s proof of reserve system into their product, 21BTC. This move aims to alleviate any worries about the Bitcoin wrapper’s backing.
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2024-10-21 23:48