CrescoFin is delighted to announce its upcoming integration with Chainlink, the market-leading decentralised oracle network. Chainlink will deliver secure and hyper-reliable data to CrescoFin for the smart contracts used in its unique on-chain, matched-funding model.
Derek Mayne, Co-Founder and MD of CrescoFin, commented:
“We are pleased to have chosen Chainlink to securely and reliably bring verified data on-chain. As one of the first regulated firms to bridge traditional finance to decentralized finance (DeFi), it was important for us to use an oracle network that met the highest quality standards for security, reliability, and accuracy. We require that the data feeds triggering our financing processes be of the same standard of security and functionality as the underlying blockchain and CrescoFin smart contracts. As the most widely used, proven, and flexible oracle solution on the market, which already secures billions of dollars in on-chain value, Chainlink’s robust oracle network gives our institutional partners the confidence needed to trust the transition of traditional financing to on-chain systems executed by smart contacts.”
Chainlink helps secure the three crucial components of our on-chain data: Proof of Delivery, Proof of Reserves, and Insurance.
Proof of Delivery
Every business interaction starts with a contract, from which two key issues arise:
- Delivery by the seller.
- Payment from the buyer.
We apply blockchain technology to this traditional model, essentially transforming paper contracts into smart contracts that execute automatically, based on data inputs.
Our blockchain solution involves putting supply chain contracts (invoices) on the blockchain, where buyer payments are automatically triggered when there is Proof of Delivery by the seller. The blockchain offers shared, tamperproof infrastructure for storing the terms and status of contracts as the source of truth for all parties, as well as executing the payment between parties. This can reduce disputes and fraud, leading to better financing terms. However, to ensure that the smart contracts function properly, the participants need to trust that the data triggering their execution is accurate and tamperproof.
The Chainlink Network addresses this problem by allowing premium data from any off-chain API to be broadcast on-chain in a secure, reliable, and decentralized manner. By aggregating a wide variety of premium data sets and bridging them on-chain, supply chain participants can trust that automatic execution of supply chain contracts based on aggregated data feeds from high quality, reliable sources.
Proof of Reserve and Insurance
CrescoFin represents off-chain invoices as on-chain tokenized assets; we plan to provide users with data about the off-chain accounts financing and insuring these assets. We will use Chainlink Proof of Reserve to supply this information which includes the invoices purchased with deposited funds and the insurance policy underwriting these invoices. This mechanism goes beyond simply reflecting account data on-chain. Chainlink is able to provide us with a full spectrum solution since their oracles also capture data on the financing side.
In traditional finance, account information is often reflected by a net asset value (NAV) calculation, which requires periodic checking by an audit firm and is therefore open to risk. Our matched funding model offers a better solution: the ability to tie off-chain deposits to real-world assets, tracked reliably and transparently on-chain. It’s a new world, made possible by Chainlink oracles.
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
Founded in 2019, CrescoFin SA is a Swiss-regulated financial services company offering interest-yielding insured deposit products, to institutional and private clients, by harnessing the security and transparency of blockchain technology in trade finance transactions. Deposits are held in several denominations including US Dollars, Swiss Francs, and Euros, as well as digital currency. The company’s digital equity tokens are listed on the Uniswap and DODO exchanges.