Starting with Oracles, but More Than Oracles: Chainlink’s Ambition from CCIP

Written by: Chianlink Blog

Compiled by: Weng Hao

When Maersk tracked and analyzed the paperwork involved in a shipment of avocados and roses from Kenya to the Netherlands, it found that more than 100 people and 200 transactions were involved. Even more surprising was that 10 days of the 34-day shipment were spent waiting for the paperwork to be processed.

althoughBlockchainTechnology and the Internet of Things have great potential to transform global trade, but their adoption has been surprisingly slow. The main obstacle to this is how to make it convenient andSafetyHow to connect supply chain systems and obtain data from Internet devices.

Chainlink successfully solves these interoperability and connectivity issues with its decentralized computing platform, ushering in a new era for global trade.

01 Seven major challenges facing global trade

The global trading system relies on fragmented systems

1. Interoperability

BlockchainThe inherent independent nature ofXiaobai NavigationOther companies and regions are usingBlockchainWe need a universalBlockchainInteroperability standards to connect all supply chain systems and capture real-world data.

2. Financing

According to the World Trade Organization (WTO), up to 801% of global trade requires financing support, as buyers usually prefer to pay after the goods are delivered. Whether through letters of credit or other supply chain financing tools, paper-intensive processes and the involvement of multiple parties usually lead to high costs, time-consuming procedures, and exposure to various risks.

3. Documentation

Paper-based processes not only increase administrative costs, but are also error-prone, vulnerable to fraud, and limit visibility. Despite advances in digital technology, the industry still relies on many paper-based documents such as packing lists, letters of credit, bills of lading, certificates of origin, import/export licenses, customs declarations, etc.

4. Coordination

Global trade relies on independent processes between many parties, lacking trust and coordination. Research by Boston Consulting Group found that in one trade finance transaction, more than 20 different entities and approximately 5,000 data interactions were involved, of which 85%-90% interactions did not generate any value. This problem is particularly prominent in emerging markets that do not have access to the same financial services as developed economies.

5. Fraud

Malicious practices such as counterfeit products and double financing remain prevalent in global trade because the necessary verification, tracking and transparency mechanisms are lacking to prevent fraud.

6. Errors

Missing goods, duplicate payments and inventory tracking errors are nearly impossible to detect in real time, and even if they are detected, they are extremely difficult to correct due to the difficulty in determining which ledger entries correspond to which transactions. This is especially true given the large scale at which many supply chain companies operate.

7. Visibility

Order, shipment and payment information is difficult to track along the supply chain. They are also often out of sync in back-end systems because one order may be split into multiple shipments, or multiple orders may be combined into one. Although audits can help verify transactions and ensurecontractare fulfilled, but they often lack the detailed information needed to enhance decision-making capabilities and improve business operations.

How Chainlink Helps Solve Supply Chain Challenges

Chainlink CCIP 连接碎片化的Blockchain

Blockchain technology can significantly improve global trade by enabling faster, more efficient and verifiable delivery of goods, enhancing end-to-end traceability, improving coordination between partners, and expanding access to financing. The Chainlink platform connects trade systems to real-world data reliably,SafetyAnd decentralized connection, enabling the supply chain to fully realize the advantages of blockchain and IoT technologies.

Chainlink helps supply chains achieve:

1. Seamless interoperability

Chainlink's Cross-Chain Interoperability Protocol (CCIP) provides a global interoperability standard that enables interoperability between chains.SafetyValue and data transfer, and connection to existing platforms and systems.

2. On-chain trade financing

Chainlink supports on-chain financing systems, provides accurate market data, identity information, and proof of reserves, helping to improve trade efficiency and expand access to global trade in emerging markets.

3. Digitalization and automation

—By converting previously paper-based documents into dynamic NFTs and leveraging Chainlink automation and functionality, digital documents are automatically updated as they move through the supply chain.

4. Ecosystem Alignment

The unified record on the blockchain enables multiple stakeholders to automate invoice financing, payments, etc., reducing manual errors and saving back-end management costs.

5. Fraud Protection

By enabling load tracking and verification across the entire supply chain through blockchain and IoT technology, Chainlink can provide end-to-end verification and establish the authenticity of goods, thereby reducing counterfeiting and fraud.

6. High accuracy data

By verifying the delivery and condition of goods through various IoT and RFID devices, the recorded status can reflect the actual situation of the goods, speed up business response, and help identify key problems in the supply chain. For example, the temperature of the container transporting fresh food can be monitored. If it exceeds the preset range, the insurance smart chain can be triggered.contract, automatically release the compensation.

7. End-to-end transparency

Blockchain technology not only provides visibility at every level, but also provides participants with a broader perspective of all necessary information while protecting business confidentiality and personal information.

03 Chainlink and Hongdafeng DAB jointly reform global trade

Chainlink and Vodafone DAB are transforming the global supply chain

Chainlink and Hongdafeng’s Digital Asset Broker (DAB) demonstrated how CCIP can be used to seamlessly exchange trade documents between different platforms and blockchains. This collaboration has the potential to enable supply chain applications toSafetyexchange data andToken，跨越公有和私有区块链，并通过 DAB 平台访问物联网设备数据。例如，物联网设备可以探测到货物起火，并自动在链上启动保险流程。通过将物联网数据安全地连接到区块链，CCIP 为贸易融资开启了许多激动人心的应用场景。

“Vodafone DAB and Chainlink are demonstrating how their platforms can come together to solve this range of compatibility issues by connecting traditional markets and advanced decentralized platforms. This ensures that data and services can be exchanged seamlessly and securely in a global trade ecosystem that was valued at over $30 trillion last year.” — Jorge Bento, CEO of Vodafone DAB

04 Activating the Economy of Things (EOT)

Combining IoT and tamper-proof value transfer to achieve fair end-to-end dispute resolution.

事物经济 (EOT）是物联网 (loT）的下一代发展阶段。在 EOT 中，现实世界中的设备不仅能够发送和接收信息，它们还能进行交易。电动车可以在充电站支付费用，冰箱可以自动购买食品，房子可以自动触发保险contract.

Blockchain, smart contracts, and oracles are key to activating EOT, providing real-world devices with immutable records, deterministic and programmable protocols, and channels to connect to real-world information and other systems.

Powered by Chainlink and Vodafone DAB, EoT will completely redefine how supply chains operate. No longer reliant on paper-based processes, manual updates and audits, and inefficient financing methods — the entire supply chain will be automated, verifiable, and efficient.

CCIP is not just for finance or global trade; it applies to the entire global economy. Whether connected to an IoT device or a private banking chain, CCIP is becoming the universal standard for secure value and data transfer supporting any blockchain-enabled application.

The article comes from the Internet:Starting with Oracles, but More Than Oracles: Chainlink’s Ambition from CCIP

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