Chainlink Joint Creation: ETF stands for "compliant encrypted encapsulated assets", and oracle will play an important role in the interoperability process between real assets and digital assets

Odaily Planet Daily News: At the roundtable session of "World Chainization: The Importance of Interoperability" at Chainlink's 2024 Hong Kong SmartCon conference, Chainlink co-founder Sergey Nazarov mentioned that ETFs are "compliant versions of encrypted encapsulated assets" with characteristics such as accessibility and interoperability. Similarly, after the listing of US Treasury bonds on the blockchain, these assets began to interact with DeFi, DEX, Lending protocols, etc. As a result, traditional assets listed on the blockchain can gain the flexibility and corresponding benefits of various encrypted assets. Therefore, the composability and consistency of different assets are crucial. And this often relies on long-term technological accumulation, as well as meeting user needs through rapid iteration. Compared to the traditional finance and DeFi fields, the application product teams in the former often lack the motivation to develop and build infrastructure; For the latter, many applications will develop their own L2 networks to build their own infrastructure. In addition, the key factor for interoperability is liquidity, which is required by traditional financial institutions, cryptocurrency exchanges, and encrypted Dapp applications. Liquidity is the prerequisite and foundation for interoperability requirements. Behind liquidity lies the key challenges involved in the process of traditional financial institutions entering the crypto world such as DeFi - identity verification (traditionally through email) and data validation. Finally, if we want to generate liquidity exchange between different assets, we need an interoperability system that meets the needs of traditional institutions such as SBI and HSBC, as well as encryption protocols such as Aave. This system may even exceed the requirements of on chain interoperability systems, allowing the value of oracle machines to be deeply reflected.