The developers of the XinFin [XDC] Network, an open-source, hybrid blockchain platform, have announced that they’ll be integrating their platform with Chainlink (LINK) Oracles in order to power several new trade finance use cases.
Chainlink offers a market-leading decentralized oracle network. The platform has grown dramatically since its launch. Its native LINK tokens are trading for $10.70 and have a market cap of more than $3.7 billion at the time of writing.
As mentioned in a blog post by the XinFin [XDC] Network:
“[We’re] excited to announce our planned integration with Chainlink, [in order to] bring off-chain resources to our trade finance platform. [We’ll use] … Chainlink’s Price Reference Data framework to launch decentralized price feeds for HKD/USD, SGD/USD, and AED/USD. These FX rates provide XinFin users with decentralized and transparent exchange rates for popular national currencies like the HongKong Dollar, Singaporean Dollar, and UAE Dirhams, which can be used to automate cross-border trade and financing via XinFin smart contracts.”
As stated in the announcement, the global trade finance market is quite complex, as it consists of many disparate systems that have no reliable and common medium to communicate and reconcile in a consistent manner. As explained by the XinFin team, this “limits the network effects they can achieve and ultimately adds more overhead to processes, such as manual input, third-party intermediaries, reconciliation and litigation, and [other challenges or issues.]”
XinFin serves as a “network of networks” that connects different distributed ledger tech (DLT) and legacy backend systems together to support a more efficient global trade finance experience for all parties involved in a transaction.
The XinFin team claims:
“Our technology is cross-chain compatible and scalable. For example, XinFin [XDC] Network is highly compatible with the Ethereum network, lowering the gas fees by nearly 1/1000th and enabling two-second transaction finality.”
“Chainlink is the most widely adopted decentralized oracle network today, collectively securing billions of dollars in value for many top decentralized applications. In our assessment of Chainlink versus other oracle networks, one of the reasons it stands out is because its oracles have built-in credential management capabilities, allowing them to access any API, such as premium data behind paywalls and within backend enterprise systems.”
XinFin confirms that they’ll leverage Chainlink’s ability to “obtain high-quality data and combine it with its decentralized oracle infrastructure made up of numerous independent, security reviewed nodes to create decentralized FX rates that can be used by our customers engaging in global trade.”
Chainlink can also be used to make off-chain data resources accessible to XinFin’s platform users. This data may include commodity prices, information or data associated with legacy payment systems, or Internet of Things or IoT networks.
Atul Khekade, Co-Founder of XinFin Network, stated:
“We plan to use Chainlink to greatly expand the amount of on-chain resources our users have access to while retaining the critical security benefits they receive around decentralized security.”
Dan Kochis, Head of Chainlink Business Development, noted:
“Bringing decentralized FX rates to XinFin lays the foundation for a more seamless global trade experience for XinFin buyers, sellers, and bankers.”