Presented by Sergey Nazarov, CEO of Chainlink, at Fluidity 2019. Fluidity brings the worlds of finance and technology together to shape the future of blockchain and capital markets. On May 9, 2019, we welcomed companies and teams to help shape the narrative of rebuilding finance at the historic Williamsburgh Savings Bank in Brooklyn, New York. Resources: Website: https://fluiditysummit.com Facebook: https://facebook.com/fluidityio/ Twitter: https://twitter.com/fluidityio LinkedIn: https://linkedin.com/company/fluidityio/ YouTube: https://youtube.com/channel/UC0NBCYlgLIxjSljf7CV91nQ/

2. CONNECTING
BLOCKCHAIN AND
THE REAL WORLD
Sergey Nazarov, Chainlink

3. Connecting Blockchains to the Real World
Fluidity Summit 2019

4. The Smart Contract Connectivity Problem
Smart Contracts are unable to connect with external data,
or any other off-chain resources on their own.
80%+ of smart contract use cases require off-chain connectivity

5. The Initial Leap Forward for Smart Contracts
Multi-signature as
“Programmable Money”
Protocol Smart Contracts =
Tokenization 1.0 and DEXs 1.0

6. The Recent Leap Forward for Smart Contracts
Protocol Smart Contracts =
Tokenization 1.0 and DEXs 1.0
Scriptable Smart Contracts =
Tokenization 2.0 and DEXs 2.0

7. The Next Leap Forward for Smart Contracts
Externally Aware Smart Contracts =
Tokenization 3.0 via “Smart Securities”
Scriptable Smart Contracts =
Tokenization 2.0 and DEXs 2.0

8. The Smart Contract Connectivity Problem
Smart Contracts are unable to connect with external data,
or any other off-chain resources on their own.
80%+ of smart contract use cases need external resources

9. The Smart Contract Connectivity Problem
Smart Contracts are unable to connect with external data,
or any other off-chain resources on their own.
80%+ of smart contract use cases need external resources

10. Blockchain Middleware Creates Connectivity
Connect Smart Contracts to
critical external data, so they
can include real world events.

11. Blockchain Middleware Creates Connectivity
Connect Smart Contracts to
critical external data, so they
can include real world events.
Connect Smart Contracts to
widely accepted bank payments
so they can pay in local currencies.

12. Blockchain Middleware Creates Connectivity
Connect Smart Contracts to
critical external data, so they
can include real world events.
Connect Smart Contracts to
widely accepted bank payments
so they can pay in local currencies.
Connect Smart Contracts from
different networks to each other
for critical combined functionality.

13. End-to-end Reliability for your Smart Contract

14. Centralized Oracles are a Point of Failure
Centralized
Oracle
Decentralized
Computation
Data
Sources
1 1 0 1 1 0 0 1 0 0 1 0 1 1 1 0 1 1 0 0 1 0 0 1 0 1
Thousands
of Nodes
One
Node

15. Centralized Oracles are a Point of Failure
Centralized
Oracle
Decentralized
Computation
Data
Sources
1 1 0 1 1 0 0 1 0 0 1 0 1
Thousands
of Nodes
1 1 0 1 1 0 0 1 0 0 1 0 1
One
Node

16. A Secure Decentralized Oracle Network
Decentralized
Oracle Network
Decentralized
Computation
0 0 1 0 0 0 1 0 1 1 1 0 0
00101001110101100
001010110110011100

17. A Secure Decentralized Oracle Network
Decentralized
Oracle Network
Decentralized
Computation
Data
Providers
0 0 1 0 0 0 1 0 1 1 1 0 0
0 0 1 0 1
0 0 1 0 1
0 0 1 0 1 00101001110101100
001010110110011100

18. Fully Decentralized Cryptocurrency Derivatives
Decentralized
Oracle Network
Decentralized
Computation
Data
Providers
0 0 1 0 0 0 1 0 1 1 1 0 0
00101001110101100
001010110110011100
0 0 1 0 1
0 0 1 0 1
0 0 1 0 1

19. Fully Decentralized Cryptocurrency Derivatives Settlement
Decentralized
Oracle Network
Decentralized
Computation
Data
Providers
0 0 1 0 0 0 1 0 1 1 1 0 0
00101001110101100
001010110110011100
0 1 1 0 0 1 0 1 0 0 0 0 0 1
011001011100100111
0110010001010011101
Off-chain Payments in
Widely Accepted Formats
0 0 1 0 1
0 0 1 0 1
0 0 1 0 1

20. All of the Inputs and Outputs Needed by Smart Contracts
Chain.link