Enterprise permissioned blockchains can be complex because they require external data from beyond the private chain. This is often needed for smart contracts, where the execution of transactions are dependent upon off-chain data sources.
Oracles enable blockchains to connect to off-chain activities and data feeds for smart contract transaction validation. Existing oracles, however, are centralized services which can create a single point of failure, and require dApp (decentralized applications) developers to put explicit trust in the implementer and operator of the centralized service.
Kaleido and Chainlink are working together to provide a decentralized oracle service as part of its Blockchain Business Cloud to enable enterprises to connect their smart contracts to real world data, events and payments.
Steve Cerveny, Kaleido Founder and CEO, says, “The organizations setting up permissioned chains on Kaleido love Ethereum because of the richness of the ecosystem. Chainlink is a great way to get data on-chain via an oracle, and will allow our customers to create richer, more robust dApps.”
Chainlink’s decentralized oracle network bridges on-chain activities to external data sources using a network of decentralized Chainlink nodes to provide reliable tamper-proof inputs and outputs for complex smart contracts for any enterprise blockchain solution. Some of these sources include legacy ERP systems, payment systems, data feeds, web APIs and more. This extends the reach and impact of blockchains and smart contracts by making decentralized oracles a secure cornerstone of the ecosystem.
For instance, let’s say a group of international companies are conducting trades on a blockchain and want make payment settlements in fiat currencies. Every cross-currency payment needs to be executed with the real-time exchange rate data. Chainlink can be used to query the corresponding monetary authorities on-demand, so that the smart contract can execute the payment settlement using the proper exchange rates.
Dan Kochis, Head of Business Development at Chainlink states, “With the Chainlink integration, enterprises on the Kaleido Blockchain Business Cloud can now easily and securely connect their smart contracts to real world off-chain data feeds. This Kaleido-Chainlink integration simplifies the process for building connected smart contacts and we’re excited to see all the different business use cases that are created in the Blockchain Business Cloud.”
Kaleido is the first blockchain company to provide a full set of tools and capabilities with all of the essential building blocks to create and customize complete enterprise solutions. With this partnership, Chainlink’s service extends the capabilities of the Kaleido Marketplace and enables customers to incorporate and deploy complex smart contracts that can now easily tap into outside data feeds.