According to Chainlink, the Common Businesses-Oriented Language (COBOL) standard facilitates approximately 95% of all ATM transactions.
Oracle provider Chainlink has revealed the "Chainlink Runtime Environment" — a standard framework for connecting traditional financial architecture, payment systems, and legacy institutions with blockchain protocols and smart contracts within a single, unified ecosystem.
According to Chainlink, the unified Chainlink Runtime Environment will encompass the runtime framework previously established by the Common Business-Oriented Language (COBOL) standard — a programming language created in 1959 that allowed for the advent of electronic banking and automated teller machines (ATMs).
The Chainlink Runtime Environment will also supersede the Java Runtime Environment (JRE) architecture, first developed in the 1990s, which made online banking possible and has grown to dominate online banking applications.
In a November 16 announcement, the oracle provider explained that the ultimate goal behind the unified architecture was to abstract away the complexities of dealing with thousands of unique financial systems to provide a streamlined and efficient user experience.
Chainlink brings traditional finance onchain
Chainlink's proposed unified architecture comes amid several developments designed to bring traditional financial institutions and businesses onchain.
At the SWIFT International Banking Operations Seminar (SIBOS) in October 2024, Chainlink revealed an integration with the SWIFT interbank messaging protocol that would allow traditional financial institutions to interact with blockchain systems using SWIFT messages.
The oracle provider also introduced several privacy-enhancing features for institutions and businesses, including the Blockchain Privacy Manager and the Chainlink Cross-Chain Interoperability Protocol (CCIP) Private Transactions option.
Privacy is a crucial and often overlooked component of enterprise-grade blockchain solutions — which prevent businesses from transacting using highly transparent public networks for fear of revealing sensitive information or trade secrets.
Chainlink is also experimenting with combining oracles and artificial intelligence to bring crucial corporate data onchain and provide an accurate, real-time, tamper-proof record of corporate actions such as proof-of-reserves.
More recently, in November 2024, Chainlink announced the conclusion of a pilot program with SWIFT and Swiss banking giant UBS. The pilot program tested tokenized fund settlements between parties and included the option for legacy financial systems to interact with the digital economy without using cryptocurrencies.