Chainlink has launched the Chainlink Runtime Environment (CRE), an all-in-one orchestration layer developed to support institutional-grade smart contracts and advance the capabilities of on-chain finance.

Orchestrating Cross-Chain Operations

The CRE is engineered to create seamless interoperability between different public and private blockchains. It integrates external data, compliance tools, and privacy-preserving computation into a single framework. According to the announcement, major financial institutions and Decentralized Finance (DeFi) protocols are already adopting the environment to simplify the deployment of secure, cross-chain applications.

A central feature of the new environment is Chainlink Confidential Compute, which provides native support for creating and executing private smart contracts. This allows sensitive data to be processed on-chain without compromising confidentiality.

The Core Function of Chainlink and LINK

Chainlink operates as a decentralized oracle network, enabling smart contracts to securely connect with off-chain data sources like APIs and other data feeds. This function provides reliable and trustworthy information, greatly expanding the use cases for smart contracts.

The network relies on a system of nodes that compete to deliver requested data. When a smart contract requires information, the Chainlink protocol registers the request and forwards it to the nodes. An internal reputation system then helps select trustworthy sources to fulfill the request, protecting the contract from inaccurate data or potential manipulation.

The entire ecosystem is powered by LINK, the network’s native ERC-20 token. Smart contracts use LINK to pay for data services, and node operators must stake LINK to participate in the network and bid on data requests. The token has a fixed supply of 1 billion and is not subject to mining or staking rewards that would increase its circulation.