Crypto Analyst Foresees Revolutionary Potential for Chainlink’s Runtime Environment
Chainlink co-founder Sergey Nazarov has suggested that the recently launched Chainlink Runtime Environment (CRE) could fundamentally change the blockchain industry in a manner similar to the introduction of the Ethereum Virtual Machine (EVM).
Nazarov stated in a Chainlink YouTube video the platform claimed for the co-founder, “The CRE can have the same impact that the EVM had on the blockchain industry.”
The EVM was pivotal for blockchain development, enabling the creation of Turing-complete smart contracts. This innovation dramatically reduced development time from months to weeks by allowing loops and state-based operations, capabilities lacking in Bitcoin Script at the time.
In a similar vein, Nazarov highlighted CRE’s ability to provide a layer of abstraction. According to him, this makes managing the inherent complexity of modern smart contract ecosystems—including interconnected on-chain and off-chain systems—significantly easier for developers.
“Building on top of [CRE]… those months get reduced down to weeks or days,” Nazarov commented.
Understanding the CRE
Introduced late in 2024, the Chainlink Runtime Environment is positioned as a method for deploying code directly within the Chainlink Platform. Its purpose is to simplify the integration of specific Chainlink functionalities by eliminating the need to incorporate specialized Chainlink code into on-chain contracts.
A cornerstone of Chainlink CEO Sergey Nazarov’s vision described previously is also CRU’s ability to bridge the gap between conventional financial systems, traditional payment networks, and established institutions. It can connect these legacy systems directly with blockchain protocols and smart contracts.
In essence, the CRE serves as an operating system for the Chainlink network, facilitating the execution of complex workflows built from Chainlink’s various services.
These workflows incorporate elements like reliable price feeds, cross-chain messaging, API calls, zero-knowledge proof verification, and compliance checks, all orchestrated within the CRE framework.
Bridging Traditional Finance and Blockchain
The architecture of CRE is designed for broad interoperability across different blockchain networks. An important feature is its support for confidential computing and zero-knowledge proofs, enhancing privacy and scalability.
The technology gained practical validation with mid-June reports detailing a cross-chain delivery versus payment settlement demonstration. The project involved Chainlink, JPMorgan’s Kinexys payment infrastructure, and Ondo Finance. This backed-up the potential application of CRE in smoothing transactions between permissioned networks and public blockchains.
Amplifying this vision, Nelli Zaltsman, who heads blockchain payment innovation at JPMorgan Kinexys, expressed the bank’s thrust to harmonize sophisticated, institutional payment infrastructure with the emerging capabilities found in blockchain-distributed ledger technology (DLT) assets.
