The paper, co-authored by World Economic Forum (WEF) researchers and Chainlink experts recommends a framework that can provide a secure gateway for legacy systems to interact with all blockchain environments
Chainlink, the most widely used decentralised oracle network, collaborated with the WEF on a whitepaper that is aimed at proposing industry oracle standards for connecting blockchains and legacy systems. The 40-page report, released yesterday, explained that blockchain and smart contracts can unlock the hidden values of legacy digital systems.
The paper, “Bridging the Governance Gap: Interoperability for Blockchain and Legacy Systems”, proposes an open-source framework to achieve interoperability between legacy systems and Distributed Ledger Technology (DLT) through the use of decentralised oracle networks–but only for specific use cases that are suitable for blockchain.
Organisations have recognised the importance of connecting blockchain systems to legacy infrastructure and data sources, explained Sheila Warren, Head of Data, Blockchain and Digital Assets, and Member of the Executive Committee at the World Economic Forum.
“This framework is an important step in providing concrete guidance to ensure that stakeholders can effectively evaluate opportunities, challenges, and potential actions to facilitate much-needed interoperability that can help unlock the benefits of distributed ledger technologies”, she added.
Chainlink Co-founder Sergey Nazarov explained that “the paper highlights some of the key considerations for both financial institutions and government IT initiatives, demonstrating their ability to become blockchain-enabled…”
The white paper was reviewed by industry leaders from across the blockchain ecosystem and representatives from the World Economic Forum’s Centre for the Fourth Industrial Revolution.
It provides several guidelines to create holistic industry standards for connecting blockchain and legacy systems and specifically talks about the significance of using crypto assets to provide crypto-economic guarantees.
Though the paper promotes highly technical and abstract solutions for improving interoperability between blockchains and legacy systems, it demonstrates practical application in the form of India’s Crop Insurance Scheme, a 2016 policy aimed at providing insurance coverage and financial support to farmers affected by natural disasters.
Agencies involved in implementing the scheme reported various issues ranging from transparency and accountability to corruption and information security. The white paper focuses on highlighting blockchain-based smart contracts and oracle systems can act as an efficient solution to the issues.
“The crop insurance program serves as an apt case to highlight the current deficiencies most legacy systems face when dealing with multiparty business processes”, the paper states. It further explains that blockchain‑based architecture becomes imperative for any organisation looking to automate business processes in a decentralised manner.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.
Related Posts
HKVAX gets approval to offer crypto in Hong Kong
HKVAX has moved closer to becoming only the third platform to receive a VATP licence in Hong Kong.…
Mining Now Launches Real-Time Mining Insights & Profit Analysis Platform
Singapore, Singapore, May 17th, 2024, Chainwire Mining Now, a trusted and reputable real-time crypto-mining insights provider company, is…
Milady Meme Coin Secures US$5 Million Investment from DWF Labs
Seychelles, Seychelles, June 3rd, 2024, Chainwire Milady Meme Coin ($LADYS) has announced a significant US$5 million investment from…