What Crypto Still Doesn’t Understand About Chainlink

Added: 2026-05-20

[00:00:00]So today, the DTCC announced progress toward our goal of advancing 24/7 collateral mobility. DTCC's collateral app chain, a shared infrastructure platform for collateral, will leverage the chain link runtime environment and chain link data standard to enable near real-time collateral management across financial markets and blockchains. This integration will enable the seamless pairing of asset prices, valuations, and movement with the aim of overhauling how market risk is managed globally and unlock a greater capital efficiency.

[00:00:32]This milestone reflects our broader vision to enable 247 near realtime collateral management across the global financial system.

[00:00:41]>> It always has seemed to me that what it is that chain link is solving is dramatically underappreciated.

[00:00:48]So what would things like this like how would that impact the underlying asset of like the link? Yeah. Of like the link token.

[00:00:58]>> So link has one major issue. Maybe it's not an issue over the long run, but it's a supply problem.

[00:01:08]Okay. But the the way that the link token works outside of the supply, we'll get back to that, is that it's essentially, okay, it's not literally, but it essentially is a proof ofstake mechanism. Let me explain.

[00:01:29]We kind of got to back up a little bit.

[00:01:32]Chain link is a decentralized oracle.

[00:01:36]What that means is that you have two separate worlds that exist. You have databases in traditional financial applications and then you have blockchains that are like these permissionless systems that just like run on smart contracts that execute based upon logic and like this whole world of just like yeah financial dealings that are happening autonomously like robots almost, right? Doing things on their own.

[00:02:02]And what chain link does is it helps to bring information from outside of the blockchain world into it in a secure manner.

[00:02:17]Let me back up a blockchain. Once a transaction happens on a blockchain, it can't really be taken back in most cases.

[00:02:28]So when you're making a transaction on a blockchain using a smart contract that is going to be executed based upon some information then you need to make sure that that information is accurate and you need to make sure that there's no way for someone to game it.

[00:02:46]And also this matters because if you're using a smart contract in a in an application, it's just code that executes on the blockchain. But if you're getting information that's coming from outside of the blockchain, imagine Ethereum.

[00:03:05]>> Mhm.

[00:03:06]>> Then I need to have a way to get that information to the blockchain in the first place. So these ideas of like, oh, what can you do with a smart contract on the blockchain?

[00:03:15]So, if a smart contract can allow you to autonomously settle a transaction based upon a condition that happens before, right? Like, I'll pay you, Ben, if you have I'll give you a loan, Ben, if you have $1,000 in your account. But if you don't, then I'm not going to give you $1,000. So, I can build a smart contract that writes that in to where even as soon as you get $1,000 in your account, bang, immediately I'll give you some money from my wallet on the blockchain.

[00:03:43]But the blockchain, I can only do that. I can do that just fine because that's information that's on the blockchain. What's in your wallet? But if that but if I need something else, like I'll give you $1,000, Ben, but if you have $1,000 in your bank account.

[00:03:58]>> Mhm.

[00:03:58]>> Then now we got to figure out how to get your bank account information into the the blockchain. Okay. So, that's what the oracles do. That's what decentralized oracles are solving is the problem of how to get information on the blockchain.

[00:04:09]>> Totally. All right.

[00:04:11]>> Sorry.

[00:04:12]>> No, you're good. That's awesome. Jay Heron had said that as well. It's not really a blockchain. It's an oracle.

[00:04:16]>> Yes.

[00:04:16]>> And then cross central had said uh link is just a governance token but they have a treasury. Is that true?

[00:04:25]>> Let me let me explain what I understand about the link token.

[00:04:28]So in order to secure the information that's coming from the outside source into this blockchain.

[00:04:41]I need a way to build a system that guarantees that no one is lying about getting that information over there.

[00:04:48]So decentralized oracle networks work where I become a node of chain link. Okay?

[00:04:56]Meaning I'm going to fetch information from somewhere else or even I'll be the information provider.

[00:05:04]>> Okay?

[00:05:04]>> And I'll submit that information to the decentralized oracle network on chain link.

[00:05:10]I'm one person that's submitting that information. Let's say it's the price of the NASDAQ today.

[00:05:19]I'm going to report that information from the CME, but I also need Bob and Jill and Thomas to do the same thing at the same time so that basically we know from several different sources that the information that's being provided is true.

[00:05:39]Okay. And so with that, the other mechanism that's in place to make sure that no one lies is that as a link node operator, I'm going to stake my link. Okay? Okay. So, I'm going to have a bunch of this linked token. And I'm going to say, look, just like on a proof ofstake network, but for the validation of consensus on the network, we're doing this for consensus of the information being true. I'm saying I put up a 100 link that says I'm not lying.

[00:06:14]And if I lie, which everyone's checking each other to see if they're lying, if my information doesn't match up with somebody else's with everyone else's, then I'm lying. Then you can take my stake of it. You can take my chamber.

[00:06:27]And so chain link the link token is also being used as a way to essentially collateralize right the truth and the validity of the information that's being purported throughout the entire ecosystem.

[00:06:40]So why would so it just being adopted more into more of these systems would like how does that acrue to the actual asset the value you know what I'm saying like what causes the price to go up >> well so well so I'm going to if I'm going to be using these chain link based applications >> Mhm. There's fees that are being generated, right, for Yeah. Yeah. Okay.

[00:07:09]>> So, so every time you're calling information from the chain link decentralized oracle network, you're going to have to pay.

[00:07:16]>> Got it. Got it. Okay.

[00:07:19]>> And so, as a node operator, I'm earning link as well if I don't lie and if I'm telling the truth.

[00:07:24]>> Yes. Yes. Got it.

[00:07:26]And so now um the demand right for operating a node goes up cuz I can get paid to do this.

[00:07:38]>> Mhm.

[00:07:39]>> And uh and if I'm a user of chain link then I would want to own as much link as possible so that my fees are essentially ne as negligible as possible.

[00:07:49]>> Got it. Yeah, that's a great explanation. Jay here on uh use case the connection between old and new tradi and defi.

[00:07:57]>> Yep, >> that's good.

[00:07:58]>> And so and and like chain link is much more than just like they've created such a moat around themselves. Sergey Nazerov >> is a beast.

[00:08:06]>> Is a beast >> and he's been there having the conversations with all these people for a very very long time. He's not as popular because he's not as controversial I'd say in terms of like crypto Twitter but but he's been there.

[00:08:19]100%.

[00:08:22]>> Um yes sir night night great point.

[00:08:25]>> What do you say?

[00:08:26]>> Uh chain link isn't creating a market providing infrastructure needed for a market particularly where hard assets are involved to occur like facilitating the communication of yes systems.

[00:08:37]>> Yes. Yes. Exactly. That that's what I've always loved about chain link is first off f first off it's agnostic. It's chain agnostic, right? Mhm.

[00:08:47]>> I don't care.

[00:08:48]>> They win in any scenario.

[00:08:49]>> They win every single time.

[00:08:53]Um and so and they're solving a real problem.

[00:08:59]Enabling a real new world. It's man, it's going to be crazy.

[00:09:04]>> Is there a strong chain link community?

[00:09:07]>> Yes, they're are crazy. They're animals.

[00:09:09]Oh, yeah.

[00:09:10]>> That's awesome. Well, hopefully we clip this and and get some.

[00:09:14]>> They will attack. They'll rip up all that stuff I just said probably. Um, but they they they so so it mentions in this article what the DTCC is talking about the chain link runtime environment.

[00:09:30]>> And so what this is about is the standardization for how information moves in this kind of a way. Right? You can see here on their website connect any system, any data, any chain.

[00:09:46]Okay, so chain link has done once again quite a few things. One of them is this runtime environment.

[00:09:53]The second thing is the crosschain interoperability protocol.

[00:09:57]>> That's awesome, Jerry.

[00:09:59]>> What do you say?

[00:10:00]>> I cringe when I hear chain link. Lol. I worked for a fence company when I was a kid. That's like a type of fence.

[00:10:06]>> Gotcha. That's That's wild.

[00:10:09]Um so so they've also created a standard for crosschain communication and um you know listen y'all y'all reach out whenever y'all want to sponsor us but uh definitely doing some things that are fundamental.

[00:10:28]>> Do they work with creators?

[00:10:30]>> Not really.

[00:10:31]>> Yeah. I guess >> they used to a little bit.

[00:10:33]>> Yeah.

[00:10:35]>> Yeah. Yep. They had a little bit of something, but then not anymore, man.

[00:10:39]Um, thanks for breaking that down. Uh, >> hey, you made it to the end of the clip.

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