Polkadot Plummets 99%! Chainlink Founder Claims Oracle Can Prevent NYSE Failures

Due to a technical glitch at the New York Stock Exchange (NYSE) on Monday, the price of Berkshire Hathaway's Class A shares experienced a sudden drop of nearly 100%, causing market turmoil. This unexpected plunge led to trading halts on multiple stocks. Chainlink co-founder Sergey Nazarov explained the important role that Chainlink's oracle can play in such situations.

Berkshire Hathaway Plummets 99%! NYSE Technical Issue Causes Wild Stock Price Swings

Chainlink Founder Claims Oracle Can Prevent Such Incidents

According to a report by Cointelegraph, Sergey Nazarov, co-founder of Chainlink, explained how Chainlink's oracle network provides a solution to the inherent vulnerabilities of centralized systems:

The decentralized oracle network invented by Chainlink can mitigate these risks by providing accurate, tamper-proof data. These networks aggregate data from various sources and use a consensus mechanism to verify messages, ensuring data integrity and preventing erroneous transactions and price manipulation. Combining blockchain technology allows for real-time verification and automated responses to anomalies, thereby enhancing the reliability and transparency of today's financial markets.

Purpose of Oracle Invention

The invention of oracle networks like Chainlink is aimed at solving the issue of real-world price data for smart contracts.

In reality, smart contracts are not that smart—they need real-world prices to settle contracts, including futures contracts and various products like flash loans. Without this valuable data, contracts are just a few lines of code with no real-world utility in the business or financial world.

Oracle networks provide smart contracts with the real-world data they need to function as financial instruments and business contracts. They utilize a decentralized node network to process and verify data, ensuring data does not come from a single source and preventing the inherent single-point failures of centralized information systems.

DTCC Partners with Chainlink to Enter the Digital Asset Space

The Depository Trust & Clearing Corporation (DTCC) seems to have also recognized this issue, as they recently partnered with Chainlink to enter the digital asset space. Their Smart NAV pilot program, leveraging blockchain technology, aims to enhance data dissemination in financial markets and explore new opportunities in financial services through the integration of digital assets.

Industry partners involved in the collaboration include Wall Street giants such as BNY Mellon, JPMorgan, Franklin Templeton, Invesco, State Street, indicating that traditional financial players have long been aware of this issue.

The partnership between DTCC and Chainlink provides blockchain-based data integration services, with JPMorgan also participating.