Baselining With Chainlink And Oracles In The Enterprise

Source: YouTube

What Is Chainlink?

Chainlink is a blockchain abstraction layer. We create universally connected Smart Contracts. So let’s unpack what each of those things means. When I say a blockchain of the abstraction layer you can think of as a level between the blockchain and the outside world. Within that space, are based solutions that people are familiar with us for is what is called decentralized Oracle’s. This is a way to connect the data on a blockchain with the real-world systems.

Source: Chainlink

What is an Oracle and can you share some examples of their importance?

Let’s say you have a smart contract for a supply chain shipping container. Let’s say I’m trying to buy t-shirts from the UK. The contract stipulates that if I received this shipment of t-shirts in the port of New Jersey, then I will pay my vendor. In so in the traditional world, you don’t have smart contracts, we had a trust that when I received them that I would pay you the vendor. But now with smart contracts, all I have to do is figure out if that IoT location or tracking of that shipment arrived in the port in New Jersey, and that the bill of customs, which is another data point, was approved, and then I would remit payment. So with that, there is external data of location GPS, the port customs information, and that information can then be fed into a smart contract that will then trigger the payment directly to the vendor. So in that system with smart contracts, each party longer has to trust each other. It’s a trustless system. What’s also wonderful about this is that you have to have an Oracle system to bring that IoT location data, to bring that bill of customs information.

“We believe that 90% of the smart contract applications cannot occur without a secure decentralized Oracle”

For the full episode be sure to see the video above or you can find it here on the Baseline YouTube channel.

🎙️ Bonus [Free Research]: State of the Blockchain & DApps 2020:

Source: Topio Networks
Source: Topio Networks

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Kyle Ellicott

Kyle Ellicott

2.2K Followers

Writing about #Blockchain, #DApps, #Digitization, and all things #Distributed. Host of Blockchain & Crypto Today