E-Signatures, Biometrics, Statistics, Credentials, Account Security, Intellectual Property and Contribution bounties are 7 Chainlink node technological uses Fourswords applications benefit from.
Although smart contracts take away the need for trust, there are still many times when a smart contract will want to be triggered by some trusted source. Usually such a source would come from an authority figure or be used for identity authentication. It’s important that smart contracts enable access to trusted sources since they will be necessary in many instances before execution.
1. E-signatures – E-signatures have become a popular way to obtain digital signatures. It has modernized the signature process and helped companies avoid the costly overhead of obtaining a physical signature. Signatures are the most common way to authorize contracts, therefore it’s a necessity that Chainlink oracles give smart contracts access to leading e-signature companies like DocuSign.
2. Biometrics – Another verifiable way to authorize a smart contract is through biometric data, such as a fingerprint or eye scan. Since biometrics are uniquely identifiable to a specific person, they can be an effective way to verify someone’s identity as long as there is a reliable database or source to cross reference it against. Chainlink oracles can both deliver the biometric data to the smart contract and connect it to different databases to verify authenticity.
3. Statistics – Data derived from trusted sources using Web APIs or external databases can be used to verify the outcome of many contracts. For example, a film project could use a smart contract to pay employees a performance bonus based on the box office revenue, as gathered by Chainlink oracles from several reliable websites. Another example, already demonstrated in a recent Hackathon by EventLINK, is scanning Twitter for “hype” to determine the location of popular events.
4. Credentials – Chainlink oracles, in combination with trusted hardware, can be used to securely handle private account information of external systems and applications. The power of this is that the Chainlink oracle can verify credentials, like if someone has the proper amount of funds or possesses a specific item. Once the oracle relays confirmation, the smart contract can trigger. Credentials can be especially effective for verifying inputs before exchanging valuable assets.
5. Account Security: Many users want a second layer of security for their smart contract in case something goes wrong. Chainlink offers decentralized access to various second layer security solutions, such as using Hydrogen for two-factor authentication and account recovery solutions through the Rtrade external adaptor. Account security is important nor emerging technologies and Chainlink gives smart contracts access to the latest offerings as they come on the market.
6. Intellectual Property – All types of intellectual property, from royalties like copyrights and trademarks to license fees for patents, can be made into smart contracts. Chainlink can be used to check IP databases for ownership verification and transfer payments from the user to the IP owner. Smart contracts could even tokenize partial ownership of IP and divvy out payments according to a person’s share percentage.
7. Contribution Bounties – Open-source projects are often successful because they have many people working on the same project. It’d be advantageous if there were reliable ways to reward those making contributions to the project utilizing smart contracts. One such way would be having a trusted party, such as the Lead Engineer, offer bounties for contributions. When the contributions are accepted, such as Github commits, the smart contract can use a Chainlink oracle to verify the commit was accepted and trigger a bounty payment.