What happened?
For a long time, the financial market has been plagued by the problem of “data standardization”. Information such as mergers and acquisitions, dividend distributions, and press releases are all “non-standardized” data, which poses a major challenge for professionals to organize.
Blockchain technology provider Chainlink utilizes artificial intelligence (AI) and blockchain technology to automatically convert these non-standardized data into “golden records” that comply with international financial standards. This helps reduce manual operations and can save investors and financial institutions $3-5 million in operational costs annually.
Chainlink’s partners include financial institutions such as Franklin Templeton, UBS, and the Society for Worldwide Interbank Financial Telecommunication (Swift), as well as blockchain platforms like Avalanche and ZKsync.
Oracle technology further empowers institutional markets to reduce operating costs and manual processing processes.
On October 21, blockchain technology provider Chainlink announced that its team has completed a pilot project. This project uses artificial intelligence (AI) and decentralized oracle technology to create a blockchain-based enterprise mobile database, solving the long-standing problem of data standardization in the financial market.
Oracles: An important infrastructure in the blockchain world that links on-chain and off-chain data, serving as a bridge between the blockchain world and the real world.
Currently, many companies present corporate mobile data such as mergers and acquisitions, dividend distributions, and stock splits in a human-readable format, such as PDF files and press releases, which are considered unverifiable “unstructured data”.
These corporate mobile data often have problems such as fragmentation, duplicate sources, and the need for extensive sorting work, and these behaviors are particularly fragmented and decentralized in the European market.
However, these data are also crucial for investors and can only be processed manually, often resulting in human errors or slow processing speeds, resulting in annual expenses of $3-5 million for investors or custodians.
By utilizing AI and oracle technology, Chainlink transforms these unverifiable, unstructured, and difficult-to-obtain offline data into digital data and achieves real-time provision. This not only greatly improves data processing efficiency but also reduces the need for manual operations.
Sergey Nazarov, Co-founder of Chainlink, stated that by converting various unrelated corporate mobile data into “golden records” that comply with international financial standards, hundreds of market participants can use it as a single source of data truth.
This project helps traditional financial markets synchronize information faster, reduce errors, and lower costs, successfully addressing the most complex unstructured data problem in the financial world.
Collaboration between AI and oracle technology solves data fragmentation, enhances market synchronization and transparency in the financial market.
In the first phase of this project, Chainlink connects decentralized oracles with large language models (LLMs) such as ChatGPT, Gemini, and Claude, and extracts corporate mobile data sources for stocks and fixed-income securities in six European countries, and converts them into compliance with global financial standards such as ISO 20022 and Securities Market Practice Group (SMPG) guidelines.
Then, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), data is published and distributed on different blockchains, enabling the traditional financial market to achieve higher data transparency and security through the transparent and tamper-resistant nature of blockchain.
Next, the team plans to integrate this system with existing financial systems, such as Swift standards, for wider application in the financial industry.
In addition to this pilot project, Chainlink has also been actively exploring other ways to bring more value to the institutional market through oracle technology.
For example, in early October, Chainlink partnered with digital asset infrastructure provider Taurus, hoping to promote the adoption of asset tokenization in the institutional market and improve security by improving data transparency and cross-chain mobility.
Reference:
cointelegraph, coindesk