Disclaimer: This article is intended to convey more market information and does not constitute any investment advice. The article only represents the author's views and does not represent the official position of Mars Finance.
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Source: Chainlink
This article is the second article of "77 ways to apply Chainlink in smart contracts", aiming to introduce how smart contracts connect off-chain data through Chainlink and activate a series of new application scenarios. , learn about the first article in this series.
This article is further expanded based on the article "44 Ways to Enhance Smart Contracts with Chainlink Oracles" released on May 17, 2019.
- Decentralized Finance
- Off-chain Payment
- NFT, Games and Random Numbers
- Insurance
- Enterprise System
- supply Chain httt ml9 Utilities
- Identity and Authorization
- Government
- Sustainability
- Off-chain calculation
Off-chain payment
Smart contracts can be easily paid with cryptocurrency on native blockchains, such as smart contracts on Ethereum are paid with Ether . However, many businesses cannot take the risk of substantial fluctuations in the value of cryptocurrency assets. In addition, they also feel that the process of converting cryptocurrencies into fiat currency is too troublesome. There are many different payment methods in the real world, so smart contracts need to be able to access different types of payment systems to fully meet the needs of various users. Chainlink can output the data of smart contracts to off-chain APIs to connect to various payment systems.
Chainlink links the block into the external payment system
Bank payment
Chainlink can connect smart contracts to the existing banking system, and smart contract developers can seamlessly integrate data and services of major banks around the world, including user banking information, direct deposits and other processes. Many consumer applications such as
Retail Payment
Uber and AirBnB provide users with mainstream retail payment solutions. Chainlink can bring the same convenience to smart contracts to mainstream credit card institutions and payment networks such as PayPal and Stripe. When developing applications, developers can access the most mainstream and common payment systems at home and abroad. Chainlink has developed mature modular external adapters for mainstream retail payment systems such as PayPal and Mistertango.
cryptocurrency payment
cryptocurrency is gaining popularity among more and more people, but some of the most popular cryptocurrencies cannot access large smart contract platforms. Chainlink can allow any smart contract platform to make payments on other distributed ledgers, such as triggering Bitcoin payments from the Ethereum blockchain. In addition, Chainlink Price Feeds can also provide exchange rate data during transfers or transactions, allowing users to obtain fair market exchange rates in a tamper-proof manner.
Alchemy and Paycoin are typical cryptocurrency/fiat currency hybrid payment platforms. These two platforms are connected to Chainlink Price Feeds to obtain exchange rate data, users can pay for various cryptocurrencies, while merchants can flexibly choose their payment method.
Employee wages
In the real world, an inefficiency problem faced by almost all industries is the default of labor remuneration for employees and contract workers. Smart contract access Chainlink can pay employees in real time, which will reduce the accounting costs of for employers and allow employees to receive immediate labor compensation.
fiat aggregator Transak is connected to a job tracking API WakaTime, which regularly triggers payments to developers. In addition, Chainlink Price Feeds can also be used to calculate the specific amount of cryptocurrency compensation to maintain a fixed dollar value.
remittance
remittance is very common in the globalized world. However, despite the continuous advancement of technology, the remittance process remains slow and costly. Many blockchain projects hope to disrupt the traditional remittance industry, and Chainlink oracles can provide reliable foreign exchange rate data for smart contracts and deposit them directly into the account after transfer.
NFT, games and random numbers
Although DeFi is currently the most dazzling star in the field of smart contracts, more and more developers are developing blockchain game applications and adding anti-tampering attributes and crypto-economic incentive mechanisms to the applications. One of the biggest features of blockchain games is the ability to generate scarce game item tokens (mostly NFTs), because blockchain can provide objective proof of the scarcity of items. While releasing these scarce game items, you must ensure that neither external personnel nor game developers can control them, so that their value can be guaranteed. Therefore, Chainlink has developed the verifiable random function (VRF). Chainlink VRF is a secure and verifiable fair random number generator (RNG) that can generate on-chain encryption proofs to prove to users that the random numbers have not been tampered with.
generates fair random numbers in a verifiable way, which can ensure the scarcity of game items and establish a metaverse, and reliably use the same game item token in different games. Verified random numbers are the most important factor in gambling applications to ensure objectivity and fairness, and users do not need to rely on the dealer to maintain fairness and objectiveness. In addition, Chainlink VRF can also fairly sort game rewards and events and fairly select jury members. In addition to random numbers, Chainlink VRF can also transmit rich data sets for games, such as accessing off-chain event data to enhance the game experience; accessing exchange rate data to realize NFT trading functions; and accessing IoT data to connect on-chain and off-chain worlds, etc.
random rewards and NFT
game items are the most critical elements of most games because they allow players to have special mana or attributes. Many game items are issued in the form of NFTs, and each token is unique. Chainlink VRF can generate important verifiable random NFTs for the game or create NFT attributes to reward gamers, such as rewarding the top ten players with a scarce set of skins.
Aavegotchi is a game project on the Polygon side chain. It is connected to Chainlink VRF to quickly and efficiently cast Aavegotchi NFTs that can verify scarcity, and randomly assign NFT attributes. Another use case is Ether Legends, a digital card collection game that connects to Chainlink VRF to randomly distribute scarce NFT rewards to top players at the end of each season. Axie Infinity, a recently popular decentralized gaming application, has also announced the integration of Chainlink VRF to create verifiable random attributes for Origin Axies electronic pets in the game.
Dynamic NFT
Dynamic NFT further expands the concept of NFT, allowing tokens to continue to evolve and change with real-world events or verifiable random numbers input by Chainlink oracle. Static NFTs will not change after being generated, while the scarcity and functions of dynamic NFTs will change with events, bringing a gamified experience to NFT collectors.
MLB star Trey Mancin and NBA rookie LaMelo Ball both released dynamic NFTs on the Ethereum blockchain, and NFTs were connected to Chainlink oracle. The NFT issued by Trey Mancini is a limited edition digital baseball card that is fairly and verifiably assigned special features to the NFT. All sales revenue from NFTs will be used for cancer research. LaMelo Ball's NFT will continue to upgrade based on his personal career development and will activate the EVOLVE token when he wins NBA Rookie of the Year.
Trey Mancini's NFT access Chainlink VRF random allocation extra function
game randomness
Unpredictability is one of the most important factors that determine whether the game is fun or not. Players have no idea what will happen next or what will happen in the corner, which will bring suspense, excitement and challenges to the game. Developers can use Chainlink VRF to ensure the unpredictability of game events and avoid human intervention. Some games will introduce various elements such as map creation, critical hits (battle games), pairing (online games), card order, and random events.
Chainlink VRF can input and output random numbers for smart contracts
prediction market
prediction market, users can bet on the results of an off-chain event. Due to the natural attributes of the blockchain prediction market, off-chain data is needed to determine the results.Chainlink provides a tamper-resistant decentralized off-chain data source that triggers forecast markets to settle and pays to winners. The forecasting market can connect to sports events, political election results, cryptocurrency development trends or price predictions, and basically you can open a bet as long as you can find the other party.
Everipedia is a blockchain encyclopedia that recently connected to Chainlink to pass election results to the on-chain prediction market for settlement. Everipedia is a Chainlink oracle node and uploads the cryptographically signed AP 2020 US presidential election results to the Ethereum blockchain for use by Yield Wars and other on-chain prediction markets.
Everpedia's Chainlink node recently transferred the results of the 2020 US presidential election encrypted and signed by the Associated Press to the on-chain
lossless savings game
DeFi composability developments have promoted application innovation, such as lossless savings games. This decentralized application can converge user deposits and lend them out on the decentralized currency market to earn profits. A winner will be selected after a period of time and the winner will receive all the benefits generated in the fund pool. After selecting the winner, all users can get the principal back in the original number.
PoolTogether is such a lossless savings game on chain, connected to Chainlink VRF to select winners in each round. The game uses transparent and verifiable on-chain random number sources to provide users with a more reliable and fair lossless bonus pool platform.
PoolTogether uses Chainlink VRF to randomly select winners of lossless savings games
sports e-sports
smart contracts can guarantee the fairness of online sports betting. Chainlink's decentralized oracle network can aggregate data from from reliable web API to verify match results. These smart contracts (note: usually predicting the market) can be executed based on the results of a game, the performance of a player, or even the results of a coin throw at the beginning of the game. In addition, the e-sports forecasting market can also obtain match data and broadcast on-chain to determine the winner. One of the use cases of
is blockchain sports betting market Augur, which connects Chainlink oracles to the high-throughput Polygon sidechain to provide data for its Turbo prediction market. Users can bet on various topics, such as sports competitions such as NBA, MLB, MMA and Olympics, and use a decentralized oracle network to access high-quality off-chain data and quickly settle.
Augur is the Turbo prediction market access Chainlink Data Feeds
Insurance
The biggest problem in the insurance industry today is the lack of trust. Insurance customers want to conceal the truth to keep premiums under control, while insurance companies deal with such fraud by delaying payments and raising premiums. Since insurance companies are responsible for claim settlement and they are much more financially than insurance customers, they have absolute voice in the time and method of paying. Chainlink smart contracts can improve the objectivity and fairness of insurance contracts, directly determine the results based on data and execute them completely according to the algorithm, without human factors in the middle.
parameter insurance
Traditional insurance companies can use blockchain technology to create parameter insurance smart contracts, and automatically trigger payments based on off-chain data transmitted by decentralized oracle networks. Insurance contracts can reduce manual arbitration and speed up claims processing and cover more types of business to hedge various risks in the real world of with .
crop insurance
crop insurance has always been considered one of the most promising use cases for smart contracts, providing insurance services to farmers in developing countries , solving the problems of insufficient coverage of insurance products in these areas or lack of trust in insurance companies. Anyone who can access the Internet can hedge unforeseen climate risks. Therefore, farmers around the world no longer need to worry about the economic losses caused to them by bad climate conditions. One of the use cases of
is Arbol. This is a weather insurance solution smart contract connected to Chainlink oracle to obtain rainfall data from the National Oceanic and Atmospheric Administration (NOAA). These data can be used as the basis for parametric crop insurance contract claims, and are compensated based on local rainfall.
Arbol connects to the Chainlink oracle to obtain weather data, triggering the execution of parameter crop insurance contracts
flight insurance
smart contract insurance One of the earliest application scenarios is flight insurance. Due to the existence of various uncontrollable factors such as weather and maintenance, flights are often delayed, which brings many inconveniences to business travelers. Flight insurance allows passengers to hedge these opportunity costs and will receive insurance compensation if they encounter flight delays.
One of the use cases is Etherisc. This is a decentralized insurance protocol that connects Chainlink oracles to obtain flight data to confirm whether the flight is delayed. There is no claim investigation in insurance smart contracts, so once the flight is delayed, the insured can get compensation immediately, while the insurer can reduce the cost of manual claims.
Auto Insurance
Today, cars usually have many sensors, Internet devices and data interfaces built-in. Chainlink 2020 Online Hackathon winner Link My Ride connected the smart contract to these data points, allowing both parties to reach a rental agreement within a period of time, unlocking doors for car rental users, recording rental time, calculating driving history, monitoring remaining power, and automatically processing rental payments. Combining these features together allows you to create a feature-rich Tesla car rental contract using a dedicated external adapter. As the data interfaces in the car become more and more abundant, new insurance products will also appear, such as parameter car insurance, which triggers car insurance based on multiple collision sensors in the car, or determines insurance discounts based on data such as annual driving mileage.
property insurance
The rise of smart homes has given birth to various sensors and advanced security systems to notify homeowners and related units in emergencies. These sensors can be connected to smart contracts through Chainlink oracles to create innovative parametric home insurance products. This insurance is especially suitable for often uninhabited houses such as vacation homes. It can be connected to smart hardware monitoring pipeline leakage, damage to solar panels or burglary, etc., which can better protect the property at home.
Life Insurance
Smart contracts connected to external data can greatly reduce costs and the probability of disputes and accelerate the claims process. There are now many web data interfaces and off-chain databases that can provide sufficient data to verify the death of the insured, such as death certificate , obituary, cremation records, and police station records. Chainlink can transmit off-chain data, automatically make claims based on the content of the insurance contract and distribute the inheritance to relevant beneficiaries, which can reduce unnecessary operating expenses and speed up the payment process.
Health Insurance
Nowadays, biotech and wearable devices (such as smartwatch ) are developing rapidly, so insurance companies can create a smart contract to determine premium discounts or impose fines based on patient health data. Exercise steps, weight, heart rate, and other more advanced biometrics can all be entered into the smart contract. Chainlink oracle can also be used to monitor data abnormalities and trigger a mandatory consultation process to maintain the optimal insurance rate.
GrandFondo participated in the ETHDenver 2019 Hacking Matsutake. This project is connected to the Chainlink oracle to transmit the time stamped GPS data on the wearable device to the chain. Users can compete on the chain and receive Ethereum bonus. The same data can also be used to create a health insurance contract, which determines premiums based on the movement of a certain period of time, and this data can be recorded by wearable devices connected to the Chainlink oracle.
Marine Insurance
Climate change has led to more uncertainty in the marine environment, such as lower or higher sea levels. If the main channel is temporarily closed, it may cause hundreds of millions of dollars in economic losses. Smart contracts can be connected to many off-chain sensors through Chainlink oracles to create a series of parameter-type insurance, such as preventing frozen cargo from thawing during transportation, preventing ship damage or delays in transport due to unforeseen bad weather.
has an Hacking Matsu project that has launched insurance specifically for cargo ships to hedge against the risks of weather-related factors that lead to the closure of major waterways. Chainlink oracle is connected to sea level sensors, and insurance compensation will be automatically triggered whenever sea level drops or rises to a certain threshold and causes the channel to close.
reinsurance
insurance is an industry with very high entry barriers, because the larger the insurance scale, the higher the risk. In the event of a disaster, the insurance company may not have enough funds to pay the owner, which will lead to a breach of contract. Therefore, many companies will " reinsurance " on the insurance portfolio they insured, transferring part of the risks to out of to avoid being unable to bear the compensation amount.
One of the viable methods is to represent the reinsurance smart contract with a token. Individual investors can purchase part of the reinsurance contract, which will provide financial protection. In this process, Chainlink oracle can be used to value the current value of the insurance contract, connect insurance payments to the token holder, and automatically trigger insurance compensation.
Enterprise System
smart contracts can provide many opportunities for corporate multi-party business processes to reduce costs and increase efficiency, and can reduce counterparty risks, intermediary costs and external disputes. However, if an enterprise wants to apply smart contracts, it often needs to consider various factors such as privacy, scalability and connectivity to meet its unique business and legal compliance requirements. Chainlink can provide enterprises with opportunities to sell data and API services to the blockchain environment, and implement various functions such as private data on the chain, off-chain computing contract logic, and on-chain transaction privacy.
blockchain abstraction layer
Internet is a unified portal to connect various computers. Similarly, Chainlink also provides enterprises with a unified middleware that can connect its API to all blockchain environments. Chainlink is compatible with all blockchains and integrates into all current and future blockchain environments. Many top blockchains have been integrated or are actively integrating Chainlink, including Ethereum, Polkadot, Avalanche, Binance Smart Chain and Matic Network. Integrating Chainlink into all mainstream blockchains can provide enterprises with a "blockchain abstraction layer" to efficiently connect the enterprise's existing systems to all blockchains.
will greatly reduce the workload of blockchain integration. Enterprises do not need to push down and rebuild existing infrastructure, but only focus on core blockchain strategies. Enterprises no longer need to spend time judging which blockchain will become the industry standard in the future and put their eggs in the same basket. In addition, Chainlink nodes also have key advantages, such as secure private key management, off-chain computing, hardware with minimized trust, and permission control.
enterprises can use Chainlink oracle as the blockchain abstraction layer, connect the back-end system to the smart contracts in any blockchain network
data and interface monetization
Chainlink has very high flexibility and can be perfectly compatible with legacy data and API infrastructure. Therefore, data providers can also use Chainlink's oracle abstraction level to sell data to smart contracts on any blockchain. It can be implemented in two ways: 1) Selling data to the Chainlink network; 2) The data provider runs the Chainlink node itself and sells the data directly to the blockchain. If the
data provider chooses to sell the data to the Chainlink network, it does not need to change any existing business model, which means they can also accept fiat currency payments without changing the existing backend infrastructure. If the data provider recognizes the value of the smart contract economy, it can also run the Chainlink node itself and use digital signature technology to sell the signed data directly to the smart contract, which can earn more revenue and continuously improve its reputation.
data provider can sell data to the Chainlink network through the existing API interface without changing the infrastructure; it can also run the Chainlink node itself and sell the signed data directly to the smart contract
node as a service (NaaS)
data provider runs the Chainlink node, and sells the API interface to the smart contract application.Infrastructure providers can provide node-as-a-service (NaaS) solutions to simplify the Chainlink oracle node construction process, quickly connect the data provider's existing APIs to the blockchain network, and ensure backward compatibility.
AWS is a leading cloud service provider. It is currently working with Chainlink Labs to release AWS Chainlink Quickstart, a one-click workflow that allows data providers and DevOps team to easily release Chainlink oracle nodes on the AWS cloud and sell off-chain data to smart contracts on various blockchains. This future-oriented framework allows data providers to easily publish Chainlink nodes on AWS, encrypt and sign data, and broadcast it to the blockchain, and sell the data to smart contract applications.
Cloud/Blockchain Hybrid Application
With the development of smart contracts, the market demands for more advanced decentralized applications, and the operations required by these applications are more complex and costly, so they cannot be performed on the chain. There is a solution to process these off-chain computing in a more scalable cloud computing environment and verify it with oracles. Cloud/blockchain hybrid applications take advantage of Chainlink oracle's ability to transmit data in both directions, and can create cloud/blockchain hybrid applications, put computing instructions and data off-chain processing, and return the results to on-chain smart contracts. One of the use cases of
is that Chainlink oracle transfers NOAA weather data on Google Cloud to the Ethereum blockchain. After integration, smart contracts can obtain high-quality weather data (such as temperature, rainfall, hail, etc.) and create parameter crop insurance agreements, such as crop insurance launched by Arbol.
Chainlink oracle transmits NOAA weather data to the chain
data request and identity authentication management privacy protection
For many enterprises and institutions, data privacy is not a small matter that adds icing on the cake, but an important demand, because they must meet various regulatory regulations such as GDPR. Chainlink recently acquired DECO, a privacy protection oracle technology, and focuses on developing advanced solutions to address this challenge. DECO is created by the Ari Juels team at Cornell University .
DECO transmits data through HTTPS/TLS protocol (Note: This is the most mainstream data transmission protocol in the world). When the oracle verifies the data, the data will not be disclosed on the chain. During this process, the data will not leave the off-chain database, and the server storing off-chain data does not need to change any settings. For example, Alice can use DECO to prove that her bank account balance exceeds a certain amount, but at the same time, there is no need to disclose specific numbers or personal information to the blockchain or oracle. This technology can place all off-chain data onto the chain and ensure data privacy and permission agreements at the same time.
Chainlink's DECO uses zero-knowledge proof to protect data privacy in smart contracts, and does not disclose data content to 未分分 or oracle
on-chain transaction privacy
In addition to the privacy of data input, many companies also hope to protect the privacy of contract logic and data output. Chainlink oracle has developed a Mixicles solution that can protect on-chain transaction privacy for DeFi smart contracts. Mixicles separates the on-chain data input from the payment data output, and the oracle becomes a bridge connecting the two modules and a transaction "mixer". The Chainlink oracle does not transmit the original data to the chain, but will only send an integer that can only be understood by the contract (integer 1 or 2 in the example below). Mixer will use this integer to perform payments to a party and hide the payment object, but at the same time, it can still generate on-chain audit reports for users to meet regulatory requirements. The Mixicles protocol can protect privacy at multiple levels, such as hiding contract terms, data sources, contract funds value, and payees, and hiding the relationship between payment data output and data input.
off-chain operation privacy
Chainlink has launched a security strategy for deep defense, where users can use multiple security layers to obtain multiple guarantees. In addition, Chainlink is also developing another solution, that is Town Crier.This is an oracle protocol that uses the Trusted Execution Environment (TEE) as additional hardware to implement general off-chain operations and ensures privacy.
Town Crier uses TEE oracle (note: Intel SGX hardware) to allow Chainlink oracle nodes to perform advanced computing on data in a black box. In this environment, data cannot be leaked, and even nodes cannot view it. Town Crier not only guarantees data privacy, but also ensures computing security, activates new oracle application scenarios, such as private keys for processing cryptocurrency payments or user login authentication information.
Chainlink's Town Crier uses Intel SGX hardware to ensure off-chain data privacy and computing security
Solidity computing
As smart contracts continue to accelerate application, the demand for expansion solutions is increasing. Decentralized applications need to increase throughput and reduce latency, while ensuring the security of user funds. Often these L2 scalable solutions require one or more off-chain verification nodes to batch process transactions and send simple responses to the L1 blockchain.
Chainlink oracle nodes can perform computing tasks and provide verification services for L2 solutions, such as Arbitrum Rollups from Off-Chain Labs. The Chainlink node can expand Solidity function operations for Arbitrum, generate fraud proofs, and pledge LINK tokens to guarantee the service without any modifications. Therefore, the oracle can not only input data, but also perform scalable off-chain Solidity operations.
Chainlink oracle can run and verify the L2 Arbitrum Rollup blockchain, which can create highly scalable smart contract applications and ensure security through fraud proof and cryptographic economic mechanisms
infrastructure provider oracle nodes
blockchain requires verifiers, sorters, transcoders and oracles to form a decentralized infrastructure network. Traditional infrastructure providers, such as telecommunications companies and Internet service providers, can join the Chainlink node network and directly run the Chainlink oracle nodes to obtain additional revenue. These infrastructure providers can use their own resources to provide very reliable oracle services and seize the monetization opportunities of the hybrid smart contract ecosystem.
T-Systems MMS is a subsidiary of Deutsche Telecom (Note: Europe's largest telecommunications company), which runs a Chainlink oracle node and sells financial market data to a number of leading DeFi applications. As users' demand for universal connected smart contracts continues to grow, revenue opportunities will also increase, which will attract more infrastructure providers to join the Chainlink node network.
"T-Systems MMS runs the Chainlink node, which can provide reliable off-chain data for Chainlink network users and decentralized applications on Ethereum, further promoting the development of DeFi application scenarios on public chains." - T-Systems MMS 3
Deutsche Telekom subsidiary T-Systems MMS runs the Chainlink node and provides off-chain data and events for on-chain smart contracts
Enterprises pay fiat currency through invoice, and then exchange it into cryptocurrency
Since cryptocurrency is a novel concept, its price volatility and regulatory uncertainty are relatively high, so some companies are not very able to accept this payment method. Since most blockchains require the use of cryptocurrencies, enterprise-level applications have not yet developed. Enterprises can now use Chainlink oracles to bypass this obstacle, and try blockchain technology without waiting for the legal system to be improved. Enterprises can access Chainlink oracle, pay fiat currency to third-party service providers using the currently prevailing invoice method, and then exchange it into cryptocurrency in the background.
, the project LINK Gas Station, participated in the Hackathon project, adopted the concept of "meta-Transaction" (Note: abstract the blockchain transaction fees and pay through the relay layer), and applied this concept to the Chainlink oracle. LINK Gas Station uses a third-party relay layer to manage ownership of LINK and Ether. These two tokens are used to deploy computing tasks on Ethereum and to obtain data services for Chainlink oracles.The advantage of this is that the responsibility and trouble of managing ownership of cryptocurrencies does not have to fall on the enterprise, but is the responsibility of the relay layer chosen by the enterprise. Therefore, enterprises only need to pay fiat currency to obtain any resources in the decentralized blockchain ecosystem. It is worth mentioning that enterprises can still control the encryption private keys required for signature transactions.
provides off-chain data for Baseline Protocol
Baseline Protocol is a framework for synchronizing enterprise databases, and uses the Ethereum main network as the main reference framework. Baseline uses zero-knowledge proof to ensure that content remains synchronized between different enterprise databases and does not disclose any privacy data to the blockchain.
Chainlink oracle is a key link to ensure that all Baseline events are input into the same off-chain data. For example, dynamic purchase orders can use Chainlink oracles to obtain aggregated weather data from multiple data sources to understand the cargo temperature. The price of each item in the purchase order can be automatically updated based on temperature, such as dynamic pricing of bananas based on weather conditions. Chainlink can ensure that data is kept synchronized between different business parties, thus reducing friction and disputes.
Multi-party protocol Use Baseline Protocol to use Chainlink oracles to obtain verified off-chain data and events from multiple data sources
to improve legacy system security
Chainlink mentioned in the white paper that the service level agreement (SLA) and equity pledge mechanism will be adopted to strengthen the cryptographic economic security guarantee of oracle services. The SLA is stored on the chain and signed by both parties, clarifying the terms of service and reward and punishment system of the oracle. The results of the SLA will be input to the reputation system for future users to evaluate the reliability of the node. If an enterprise runs the Chainlink node in person, it can pledge rights in the SLA to improve the reliability and security of data and off-chain services. If the requirements agreed in the SLA cannot be met, it will lose the pledge rights and reputation. This mechanism allows enterprises and data providers to provide security for smart contracts without changing their backend systems.
Supply Chain
Supply Chain includes the entire process from raw materials procurement to delivery to end users. In this process, it will involve remittances, ownership changes, customs clearance, supervision, and sharing of documents between parties. Smart contracts can automate this process and reduce friction and opponent risks in international trade. Chainlink oracle can connect supply chain smart contracts to web APIs, cloud networks, and various sensors such as GPS, temperature, speed, acceleration, humidity, and brightness. This data can be used to trigger payments and data transmissions, and no party in the supply chain can tamper with the data. This framework will guarantee an objective source of facts for all parties involved and significantly reduce daily management expenses.
RFID tracking cargo
increasingly use RFID (radio frequency identification) technology to track cargo. The RFID system binds the goods to the tags and can be remotely identified through radio frequency. Therefore, it is possible to easily and efficiently track store merchandise, shipping pallets, and other commonly used inventory management methods. With the Chainlink oracle, off-chain RFID data can be used to trigger the execution of on-chain contracts, including initiating payment after receiving the goods in the warehouse, or automatically triggering insurance claims when shipment is delayed.
The Open Library Project participated in the 2020 Chainlink Online Hacking Mall. This project is connected to the Chainlink oracle to connect RFID to the blockchain. Users can view the status of books with RFID tags (borrowing will be returned) and record them on the chain, which can create a decentralized and boundless book rental platform.
RFID device can be connected to smart contracts through Chainlink oracle
IoT sensor
IoT sensor can be used to ensure that goods are not damaged during transportation. For example, keeping food at a certain temperature or sealing the container, and the process cannot be manipulated. Chainlink can connect these IoT sensors with smart contracts to determine whether quality control standards meet the requirements of purchase orders based on IoT data and trigger payments or fines. One of the use cases of
is PingNET.This is a decentralized transportation network where IoT devices are connected to Chainlink oracles, and payments are automatically triggered based on data sent by IoT devices on the pallets. PingNET also plans to put other IoT data on the chain, such as humidity, altitude, UV index and radiation.
Customs clearance
Cross-border shipping often involves different regulatory regulations of different countries. Customs clearance is usually required in the destination country to ensure that there is no entry of any illegal or dangerous goods. Many trade and financial contracts require customs clearance data to judge the status of the goods in real time. Although smart contracts can automate the process, they still need to enter customs clearance data. Chainlink oracle can directly provide customs clearance data and at the same time ensure data privacy, achieving end-to-end automation of cross-border trade financial contracts.
Bill of lading, invoices and insurance
International trade usually contains three main documents: 1) Bill of lading, issued by the carrier, indicating that the goods need to be shipped; 2) Invoices, issued by the seller to the buyer, listing specific transaction details; 3) Contracts signed between the insurance company and the insured indicate that the insurance company needs to pay compensation in accordance with the law. Each of the above documents can benefit from oracles. For example, you can directly generate bills of lading based on data, enter foreign exchange rates for payment invoices, and enter IoT quality control data for on-chain insurance contracts to trigger insurance claims.
