Chainlink, the red-headed stepchild of cryptocurrency. There are times when its the talk of the town, but then when things turn for the worst, everyone turns their backs on it. ExceptChico, because we stank.
So you are ready to get stinky with my linkie well you don’t have a choice, because its time for Chico Crypto! Ethereum, Chainlink & settling future quadrillions? How, what & when? Well, we think the foundation is being laid as I present this information. How? Have you ever heard of the DepositoryTrust & Clearing CorporationDTCC?
Well, its the American post-trade financial services company, which provides trade clearing & settlement services to the big financial players.
Today, the DTCC settles the vast majority of securities transactions in the US, making it by far the highest financial value processor in the world. In 2011 it settled 1.7 quadrillions ya quadrillion!! And in May of last year, 2020 the DTCC proposed 2case studies to further explore the digitalization of public and private markets.
As we can see the case studies were called projectION and project Whitney, with the goal of examining potential use cases of DLT, distributed ledger technology.
So who is it? Who are the blockchains, and distributed tech being trialled by this massive financial entity?? Well just a month after ION and Whitney were announced, digFin group posted this article DTCClooks to extend processing to digital assets and they dive into one of the projects. Specifically Whitney.
DigFin Said DTCC has built ProjectWhitney, a prototype digital infrastructure on Ethereum, a public blockchain, for issuer services across primary and secondary private markets Yes, for Whitney ANd IIIIIIIIII yes IIIIIIIwill always love you…oooowoowowo They chose Ethereum to test this on, just 7 months ago.
So what exactly is it?? Whitney is the edgier of the two proposals and aims to tokenize private securities and enable secondary trading. It would initially target Regulation D (SEC Exemption) equities. I wonder how the testing has been going, and who was involved with it?? Well, you gotta look into who was working with DTCC, before Whitney on Ethereum & those highly connected right back to Etherem.
All the way back February of 2017, the DTCC & digital asset, moved to the next phase of a project after a successful proof of concept for repo transactions and digital ledger technology. So they worked together back then digital Asset involved with Whitney? Well, Ledger INsights covered the white launch in an article titled DTCC proposes tokenizing private securities on public Ethereum blockchain and they said The PoC used theDAML smart contract language DTCC and digital asset, connected at the hip.
DTCC project Whitney is on Ethereum.How is the digital asset connected to Ethereum, completing the trifecta? Well in March of this year, the enterprise Ethereum alliance showed how. They tweeted member Digital Asset, with BTP, have made the DAML smart contract engine available for the EEA specifications-compliantHyperledger Besu project Digital Asset is a member of the EEA, but they have also made their DML smart contract engine ready and prepared for Hypeledger Besu.
And if you know what Besu is, you know this has to tie into DTCC and project Whitney. Best is an Ethereum client designed to be enterprise-friendly for both public and private permissioned network use cases. The perfect client to serve the needs of Whitney which needs the tokenization of private securities and the ability to trade them publicly in secondary markets.
And this is further confirmed by the Etherean heads who helped the DTCCcreate Whitney. The corporate heads of Ether, Consensys. In July they put out a thorough blog post titled Major Financial Clearinghouse IsExploring Ethereum for Digital Asset Management, which explains yes it was fully built on Ethereumand how it uses it.
Consents said While the DTCCchose to work with the public Ethereum network, an alternative approach used by many clients to date would be to create a private instance ofEthereum Technologies such as Hyperledger Besuand Quorum have emerged as default choices for enterprise-friendly Ethereum clients.
The PegaSyssuite, which was built by the team that developedHyperledger Besu, allows enterprises to quickly spin up private Ethereum networks with advanced functionalities and 24/7 support services Big Bon, Chico is on.
HyperledgerBesu is a big piece of Whitney on the client-side & guess whats a big piece of Besu? Something we covered and covered 1st, Hyperledger Avalon, formerly known as the trusted compute framework. You guys, remember that I was covering it before it was Avalon, and when the Avalon announcement came in October of 2019.
I knew something was up back then, but now its all starting to come together. You go to the most recent documentation on Avalons architecture, they show the DirectModel Supported Blockchains right out the box for Avalon, and of course, it connects to hyper ledger fabric, and Ethereum, just like Whitney but the client, just like Whitney. Its HyperLedger Besu. Now, its time to bring the connections altogether. As the descriptions of what Whitney is, reveal oh so much.
Well luckily, the DTCC put outa full case study of the project, describing it in detail. And in phase 1: the prototype build, a major piece of Whitney is the compliance oracle, which from the picture is highly connected to APIs.
In compliance oracle, it says When a transaction is approved, the stock record is updated, and the movement of tokens on-chain occur. Can be called through an on-chain transfer or via API. And in API connectivity it says RESTAPI interfaces that enable platform parties to perform operations such as investor registration and off-chain transfer requests.
On-chain transfers with stock records, or off-chain with API. This is what the compliance oracle does. Now, what was Hyperledger Avalon? Off chain trusted compute going to hyper led grown description on what it does It aims to enable the secure movement of blockchain processing off the main chain to dedicated computing resources Who was the ethereum oracle projectinvolved with Hyperledger Avalon!? The announcement post clearly stated it, and I covered it back in 2019. Chainlink.
Whitney clearly uses besu which useshyperledger avalon. The offchain trusted compute,oc which chainlink is the oracle piece. Whitney has a Compliance Oracle within it. Connections connections connections but then, in November of last year, only a couple months ago.
Chainlink dropped this blog 77 Smart Contract UseCases Enabled By Chainlink ” and in the section they specifically mention Whitney’s compliance oracle, linking to the case study by the DTCC.
And that case study from the DTCC, as we can see dropped in May of 2020. I’m sure this was probably nothing, weeks later, we got the announcement of the Interwork Alliance, as we can see June of2020 for standardizing token powered ecosystems. Going to the Interwork alliance members sponsor member.Digital Asset.
And right next to each other in principal members: Chainlink and the DTCC. Now, what I want to finish this episode off with, is with the guy who knows all about the DTCCand project whitney, artem korenyuk, executive director of fintech and innovation at the DTCC. He spoke on project whitney, at the Ethereumin Enterprise Virtual conference in July,lets listen in what he had to say about an oracle.
A multiparty workflow and paint this a quinkadink. Back in October, when Hyperledger avalan was announced, Chainlinkput out a blog post Driving Demand for EnterpriseSmart Contracts Using the Trusted Computation.
Framework and Attested Oracles via Chainlinkand they say Data-driven smart contracts provide one of the best solutions to automating externalbusiness processes involving multi-party workflows by reducing human and cross-network friction Why so similar? Cheers Ill see you next time!.
Read More: How to Buy and Sell Binance Coin