Chainlink, the red-headed step child of cryptocurrency.
There are times when it’s the talk of the town, but then when things turn for the worst,
everyone turns their backs on it. Except Chico, because we stank. So you are ready to
get stinky with my linkie...well you don’t have a choice, because it’s 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 head of the Depository Trust & Clearing Corporation
DTCC? 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 quadrillion...ya quadrillion!!
And in May of last year, 2020 the DTCC proposed 2 case 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 trialed by this massive financial entity??
Well just a month after ION and whitney were announced, digfin group posted this article “DTCC
looks to extend processing to digital assets” and they dive into one of the projects. Specifically
Whitney. DigFin Said “DTCC has built Project Whitney, a prototype digital infrastructure on
Ethereum, a public blockchain, for issuer services across primary and secondary private markets”
Yes, for Whitney “ANd IIIIIIIIII yeee IIIIIII
will 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...is Digital Asset involved with Whitney?
Well Ledger INsights covered the whitney launch in an article titled “DTCC proposes
tokenizing private securities on public Ethereum blockchain
and they said “The PoC used the DAML smart contract language
DTCC and digital asset, connected at the hip. DTCC project Whitney is on Ethereum.
How is digital asset connected to ethereum, completing the trifecta?
Well in March of this year, the enterprise ethereum alliance showed how. They tweeted
“EEA member Digital Asset, with BTP, have made the DAML smart contract engine available for
the EEA specifications-compliant Hyperledger Besu project –”
Digital Asset is a member of the EEA, but they have also made their
DAML 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. Besu 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 DTCC
create whitney. The corporate heads of Ether, Consensys. In July they put out a thorough blog
post titled “Major Financial Clearinghouse Is Exploring Ethereum for Digital Asset Management,
which explains yes it was fully built on Ethereum and how it uses it. Consenys said “While the DTCC
chose to work with the public Ethereum network, an alternative approach used by many clients to
date would be to create a private instance of Ethereum “Technologies such as Hyperledger Besu
and Quorum have emerged as default choices for enterprise-friendly Ethereum clients. The PegaSys
suite, which was built by the team that developed Hyperledger Besu, allows enterprises to quickly
spin up private Ethereum networks with advanced functionalities and 24/7 support services”
Big Bon, Chico is on. Hyperledger Besu is a big piece of Whitney
on the client side & guess what’s 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 it’s all starting to come together.
You go to the most recent documentation on avalon’s architecture, they show the Direct
Model Supported Blockchains right out the box for avalon, and of course it connects to hyperledger
fabric, and ethereum, just like whitney...but the client, just like whitney….it’s HyperLedger Besu.
Now, it’s time to bring the connections all together. As the descriptions of what Whitney is,
reveal oh so much. Well luckily, the DTCC put out a 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 occurs. Can be called through an on-chain transfer or via API.
And in API connectivity it says “: REST API interfaces that enables 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 hyperledge’r own 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 project involved with Hyperledger Avalon!?
The announcement post clearly stated it, and I covered it back in 2019. Chainlink.
Whitney, clearly uses besu which uses hyperledger 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 Use Cases 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 of 2020 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 DTCC
and project whitney, artem korenyuk, executive director of fintech and innovation at the DTCC.
He spoke on project whitney, at the Ethereum in Enterprise Vitual conference in July,
let’s listen in what he had to say about an oracle.
A multiparty workflow...and aint this a quinkadink. Back in October,
when Hyperledger avalan was announced, Chainlink put out a blog post “Driving Demand for Enterprise
Smart Contracts Using the Trusted Computation Framework and Attested Oracles via Chainlink”
and they say “Data-driven smart contracts provide one of the best solutions to automating external
business processes involving multi-party workflows by reducing human and cross-network friction”
Why so similar? Cheers I’ll see you next time!