Sergey Nazarov, co-founder of Chainlink and CEO of Chainlink Labs, sees a clear case for decentralized finance and the adoption of blockchain as market reels and global pressure on trade relations following the price war of President Donald Trump.
ChainLink is a decentralized oracle network that connects out -chain external data to Blockchain smart contracts. Because it uses an open source infrastructure, any blockchain can connect to out -chain data via Chainlink and contribute.
The ChainLink platform has enabled more than 20 billions of dollars in commercial transactions on several blockchains with more than 2,200 projects from decentralized finance to capital markets, according to the company.
Nazarov attended the
The event was organized for hours after President Donald Trump signed an executive decree
Last week, the president
The American banker spoke on Wednesday with Nazarov before Trump announced a
People around the world are looking at prices. Where is decentralized finance in this area?
Sergey Nazarov: I think that our industry will become even more important during deglobalization periods because it is an industry that is not brought up. Globalization is generally a very powerful force and it is very powerful on the markets, because if you have a globalized market – what the crypto is and why we were able to grow so quickly – you have access to global liquidity or the purchasing power of everyone in the world. While traditional financial systems do not really have global liquidity. They have it in some places, but they mainly have local and domestic liquidity.
In the end, the few things that are still globalized in nature will be very large. If you had 15 different contact points between countries and you only have five, these five are more important because the countries care more about them.
How do market fluctuations due to prices affect crypto?
The prices of assets drop are generally bad for our industry overall. Our industry is still in correlation with the Nasdaq.
I think that the flow of Chinese capital in our industry has always been good. If our industry is perceived with an orientation centered on the West, it could negatively affect this dynamic. Although I don’t think it will happen. Chinese capital is what brought the price of bitcoin to $ 1,000. The first really important jump when people started to take Bitcoin seriously, it was when it went to $ 1,000 and it was led by outgoing money from China. Historically, there has been a lot of movement on the Chinese capital market.
On the other hand, as inflation increases, I think that consumers at retail will have less capital to spend on risk assets and investments in general. What was going on before was that inflation benefited from assets, but now inflation will go to goods and consumption items, and this is not good for the long -term crypto.
Will this uncertainty affect the rhythm of the adoption of blockchain technology or do you see the financial institutions go ahead?
What happened now is that we have reached a kind of critical mass of institutions that will launch blockchain solutions in production, and when this critical mass of institutions launches these solutions, it will suffice for a signal that the transition of the financial system in a format based on blockchain occurs. In fact, you don’t need 100% of all institutions to involve. What you need is that a percentage of them does it at the same time; It is starting to create an institutional blockchain transaction ecosystem. The types of people who do this with us are not small: UBS, SBI and Fidelity, whose tokenized funds we feed. Blackrock is also publicly on the channel. I think that’s what will happen.
What other indicators do you pay attention to?
One of the other good reasons to believe that this will happen is that it is motivated by the purchase side. Historically, in capital markets, when behavior, transactions or adoption are motivated by the purchase side, it continues to grow. Basically, the rest of the financial system is service providers to the purchasing team. If the Buy side begins to make tokenized funds and starts using tokenized assets in these funds, service providers cannot ignore it. They will have to explain how they will serve their client.
It’s interesting.
I thought that the prices could disrupt part of the work on blockchain projects, but I think it only accelerated it for banks. We are still talking with banks now and generally when there are market slowdowns, people tend to withdraw from projects, but that has not happened at all. Maybe it will always happen. Maybe there is a delay there, but maybe there is really no delay. Perhaps what is happening is the need for global payments and the need for global assets to move through ecosystems becomes even more pronounced.
It will be interesting to see what is happening with cryptographic industry, because more traditional links between countries and institutions collapse. Cryptographic industry and blockchains as technology may become more and more a parallel system for institutions and people and countries to be transformed.
Why do you think there have been so many movements recently in this space?
All the dynamics have changed completely because the United States has now decided that it should catch up.
There is now an understanding that cryptocurrency is a key market in which the United States wants to drive. There is an understanding that stablecoins are a distribution mechanism for the US dollar and ownership of the US Treasury. … They begin to understand that the financial system will migrate to this model based on blockchain and consider, what will be the position of the United States in this financial system? … The most important thing is the place where all the assets are issued. Are the assets emitted in Singapore, Hong Kong, Dubai or Europe? Or are they issued in the United States?
