Chainlink Labs’ Chief Business Officer, Johann Eid, recently sat down with Ryan Solomon on the Generation Infinity podcast to discuss why Chainlink is the energy source bringing the entire global financial system onchain.
Eid distilled crypto’s dramatic evolution over the past decade.
“I like to picture a desert and us in the desert looking for an oasis. That was basically the crypto space eight years ago. I do think we found our oasis today. This oasis is tokenization.”
He said Chainlink is the common denominator connecting everything from DeFi applications to global financial institutions.
Institutional tokenized real-world assets constitute an $867 trillion market opportunity. The Chainlink Runtime Environment (CRE) is a key orchestration layer that allows institutions to seamlessly connect with onchain finance through their legacy infrastructure.
“This is not even something that’s theoretical; it’s literally happening right now,” said Eid. He highlighted DTCC’s collaboration with Chainlink on the DTCC Collateral AppChain, which leverages CRE to facilitate 24/7 near real-time collateral management across global financial markets and blockchains, as a real-world use case moving to production.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is the only interoperability standard to achieve ISO 27001 and SOC 2 Type 2 attestation. Following a LayerZero exploit that resulted in nearly $300 million in losses across DeFi, numerous top protocols representing a combined TVL of more than $15 billion have migrated to CCIP.
“I think most of the space will be running on Chainlink CCIP in the very short term,” Eid said.
He believes CCIP is the bedrock for anyone from anywhere to build a world-changing application, because it establishes security by default.
“If you make it super hard for people to build in this space and you put all the liability on them, all the security on them, the success stories can’t happen anymore.”
From his point of view, the long road toward institutional tokenization has already passed the point of no return.
“A lot of people are actually not bullish enough about where we are. These institutions are ready.”
He said Chainlink’s blockchain-agnostic, neutral architecture is built to serve a world that’s increasingly connected and distrustful.
“It can run 24/7. It has instant settlement. It’s automated. It limits counterparty risk.”
Likewise, he believes stablecoins have already proven the global utility for tokenizing everything.
“The democratization effects, the impact it has had on the world has been just insane,” he said.
“I would like to see anyone point me to any other technology that has had the same impact on people’s lives as stablecoins. And now you have literally the biggest institutions in the world doing it for the biggest assets in the world from equities to securities to treasuries to real estate to commodities.”
For Eid, it’s not a question of what or how much will be tokenized.
“Tokenization will be very simple. It’s binary. It’s zero or one because if you start tokenizing some of it, everything will be tokenized.”
Watch the full interview.
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