AllianceBlock & Chainlink Collaboration: a Deep Dive

5 min readNov 17, 2020

AllianceBlock is proud to announce a collaboration with the world’s largest oracle network — Chainlink. As our recommended decentralised oracle solution, Chainlink’s oracle network will provide the AllianceBlock ecosystem with a broad range of data oracle solutions.

As part of our collaboration we will introduce Chainlink to a number of high profile traditional finance entities and exchanges to unlock a range of powerful new data feeds for Chainlink’s oracle network.

In addition, collaborative opportunities are being explored within AllianceBlock’s federated Artificial Intelligence framework and the creation of Role Based Access Controls to leverage anonymised user data for enhanced outcomes.

The key features of this exciting collaboration are:

AllianceBlock will integrate Chainlink oracles into the AllianceBlock protocol and designate Chainlink as the recommended decentralised oracle solution due to the strong technological guarantees it provides.
Chainlink will provide AllianceBlock with access to high quality data feeds including as a means of pricing and settling derivative products, allowing quant and algorithmic traders to build data-driven trading algorithms, and creating a decentralised data terminal for different stakeholders.
AllianceBlock will provide access to its federated AI framework to gather anonymised market and user insights, opening up additional revenue streams for data providers while enabling opportunities for Chainlink and its partners.
AllianceBlock will connect Chainlink with top-tier traditional finance entities and exchanges to deliver new and valuable data feeds for Chainlink’s oracle network.

Connecting Global Capital to DeFi

AllianceBlock is connecting regulated capital institutions with DeFi infrastructure via the world’s first globally compliant decentralised capital market. We are aiming to make all digital assets and crypto products tradable, bankable, fungible, and accessible to the entire regulated finance industry.

We are partnering with several legacy finance entities and marketplaces in addition to promising blockchain ecosystems, including AIKON, Orion Protocol, Ramp DeFi, Quant, and Holochain as we continue to implement our vision of decentralising the financial industry.

A key component of building a full service global capital market is facilitating data exchange between AllianceBlock’s decentralised financial platform and our partners’ legacy marketplace infrastructure. Doing so requires a blockchain oracle, which allows data to be passed between the two environments in a secure and reliable manner.

Chainlink: High-Quality Data Sourcing and Delivery between Smart Contracts and Legacy Markets

Chainlink is the market-leading blockchain oracle network, currently securing over $3.5B+ in value for various financial applications throughout DeFi and CeFi, such as Aave, Synthetix, and Celsius, amongst others.

Chainlink allows real-world data to be brought onto the blockchain in a secure, transparent, and reliable way by retrieving data from external applications via a network of decentralised oracles. Likewise, these oracles can also take information stored on the blockchain and transmit it to external applications, allowing firms and individuals to access it in a more readable, useful format.

Chainlink was chosen because it is the only oracle network with built-in credential management capabilities and has the largest decentralised network of sybil resistant oracle node operators, providing us with immediate access to highly available and manipulation resistant oracle data feeds sourced from premium APIs.

AllianceBlock Use Case Synergies with Chainlink

Chainlink’s technology aligns perfectly with our vision to provide an easy-to-use, interoperable blockchain solution for the traditional finance sector.

We can use Chainlink to accept and distribute data across multiple interconnected blockchains and off-chain markets — a crucial pillar in establishing a truly interoperable capital market capable of interfacing with legacy institutions.

Derivatives Products

The integration will begin with using Chainlink to connect regulated securities exchange partners’ price data to on-chain derivatives products, starting with energy derivatives, these derivatives will be priced by AllianceBlock Pricing Engine and feed back to Chainlink. Since Chainlink can connect to credentialed APIs, there is no limitation to onboarding new data partners and creating innovative derivatives products.

Decentralized Data Terminal

Chainlink oracles will also connect numerous price feed types from various markets to our decentralised data terminal. The terminal will be a one-stop-shop for traders, providing up-to-date market data which quant and algorithmic traders can use to build trading strategies and develop market insights. Chainlink already has numerous Price Feeds live in production that we can leverage with minimal integration to support DeFi and TradeFi products.

AI Insights

AllianceBlock will use Chainlink’s oracle network to become a data provider to other applications and markets. AllianceBlock’s federated AI framework known as “The Brain” is used to generate broad, privacy-sparing insights using the collective intelligence of users and the data they share. This data can be sold to various stakeholders, particularly equities, crypto, and derivatives exchanges.

“We are creating compelling partnerships across finance and blockchain to enable a new, decentralised global financial system. Our collaboration with Chainlink allows our many partners to connect and share high-quality data securely in order to power next generation financial products, as well as monetise their data for new markets,” stated Rachid Ajaja, AllianceBlock Founder and CEO. “We look forward to collaborating with Chainlink’s industry leading oracles as a key component to bridging data between the blockchain and legacy financial worlds.”

“Building a trustworthy, decentralized capital market requires high quality data feeds that ensure accurate pricing and settling of derivative products that allow quants and algorithmic traders to build data-driven trading algorithms,” said Daniel Kochis, Head of Business Development at Chainlink. “AllianceBlock has introduced a highly compelling new offering to the traditional markets and Chainlink is excited to integrate into its protocol to further its mission while also unlocking new revenue opportunities for data providers that want to access the growing DeFi ecosystem.”

About Chainlink

Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high quality data sources from other blockchains as well as real world data. Managed by a global, decentralized community of hundreds of thousands people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.

Chainlink is trusted to deliver definitive truth by hundreds of organizations to provide continuous, reliable data feeds. To learn more, visit chain.link and follow @chainlink on Twitter.

About AllianceBlock

AllianceBlock is building the first globally compliant decentralized capital market. The AllianceBlock Protocol is a decentralised, blockchain-agnostic layer 2 that automates the process of converting any digital or crypto asset into a bankable product.

Incubated by three of Europe’s most prestigious incubators: Station F, L39, and Kickstart Innovation in Zurich, and led by a heavily experienced team of ex-JP Morgan, Barclays, BNP Paribas, Goldman Sachs bankers, and quants, AllianceBlock is on the path to disrupt the traditional markets with its state-of-the-art and globally compliant decentralized capital market.

Visit our Website: www.allianceblock.io

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