Smart MFG Tech and Chainlink will work together to Integrate Oracles Powering DeFi-Based Supply Chain Applications
Smart MFG first established itself as a market leader in decentralized supply chain applications through its partnership with SyncFab — a blockchain platform that allows OEM Purchasing and Engineering Departments to source, procure, track, secure, and pay for precision parts. Smart MFG aims to build on that foundation as part of our evolutionary roadmap by spearheading the first global DeFi initiative for blockchain-based supply chains.
As part of our DeFi initiative, we are excited to announce that Smart MFG plans to work together with Chainlink to integrate oracles as the go-to solution for facilitating data feeds for DeFi-based supply chain applications. Leveraging Chainlink’s secure and reliable price oracles will allow our users to access the current market price of a variety of cryptocurrencies, fiat currencies, commodities, and various other assets when building and/or executing finance, payment, and user reward processes.
In addition to integrating Chainlink into the new Smart MFG Tech platform, Smart MFG will look to connect Chainlink with traditional data providers in supply chain and trade finance as a means of bringing their valuable data on-chain through the Chainlink Network.
Introducing DeFi for Supply Chain
With the development of the new Smart MFG Platform, Smart MFG is building the world’s first DeFi platform for supply chains. By delivering infrastructure that enables legacy institutions to benefit from the increased efficiencies and lower costs offered by blockchain and cryptocurrencies, Smart MFG Tech will redefine how markets operate and unlock innovative structured products for traditional finance institutions looking to expand into the digital asset market.
The new initiatives include more active globally decentralized communities, new alliances between buyers and suppliers interested in streamlining supply chain processes, as well as new liquidity partners, 3PL logistics providers, and much more.
One of our proposed use cases that merges supply chain and DeFi offerings is the MFG Supplier Incentive Reward Program, which rewards users who spend time connecting supply chains with blockchain. Companies can provide these rewards through MFG ERC20 tokens. For example, parts suppliers are incentivized to submit tender bids via on-chain token rewards. Smart MFG partnered with SyncFab to reach this achievement, as SyncFab has built a parts procurement and supply chain blockchain platform.
Another use case involves tokenizing invoices and parts within the supply chain, which we will then be in a position to incentivize expedited payments and financing on using MFG token rewards in partnership with innovative supply chain finance companies.
One of the key issues, however, is the inability for blockchains to access data and events existing outside the blockchain, such as current asset prices and exchange rates. In order to provide users with this external information, we require an oracle solution to fetch external data on our behalf and deliver it on to the blockchain.
Powering DeFi Products with Smart MFG and Chainlink Oracles
When evaluating different oracle solutions, we identified Chainlink as the most secure, reliable, and widely adopted oracle network in the industry. Numerous top DeFi projects like Synthetix and Aave already rely on Chainlink’s Price Feeds to obtain price data, which currently secures the movement of over $10B+ in on-chain assets. Some of the key features available through Chainlink Price Feed oracle networks include:
- High-quality data – All Chainlink Price Feeds source data from numerous professional data aggregators, ensuring Smart MFG is using global market prices that reflect a volume-adjusted aggregate of all trading environments.
- Secure Nodes – All Price Feeds are secured by a decentralized network of independent, security reviewed oracle node operators run by experienced blockchain and DevOps teams, mitigating downtime and Sybil-attacks.
- Decentralized Network – Chainlink Price Feeds are decentralized at the oracle and data source level, leading to high uptime and manipulation resistance in the sourcing and delivery of external price data on-chain.
- Off-Chain Agnostic – Chainlink oracle networks can fetch data from any off-chain resource, serving as a single framework to extract data from any blockchain, API, or external system.
An example of the Chainlink ETH/USD Price Feed Oracle Network
Hikaru Yuki, Executive Director of Smart MFG Tech said, “Smart MFG aims to bridge the gap in supply chains between traditional and decentralized finance. By permitting the sharing of data across multiple interconnected blockchains, as well as between blockchains and off-chain systems, our Chainlink integration is an essential next step in establishing a decentralized capital market that fully interfaces with traditional financial institutions. Chainlink Price Feeds will enable the development of various supply solutions like the distribution of rewards, execution of payments, tokenization of invoices, and various other DeFi products for supply chains.”
“We look forward to working with Smart MFG Tech to supply secure and reliable price oracles to enable new DeFi use cases within the supply chain industry,” said Daniel Kochis, Head of Chainlink Business Development. “Chainlink’s high-quality data and time-tested decentralized infrastructure ensures that Smart MFG users are able to integrate aspects of DeFi into traditional supply chain models to generate more efficiency and create incentives for users who participate in blockchain-based networks.”
Chainlink is the most widely used and secure way to power universally connected 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 of 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 by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
About Smart MFG Tech
Smart MFG Tech is a blockchain company focused on Industry 4.0 Digital Transformation and promoting new data mobilization technologies, including IIOT (Industrial Internet of Things) for use within the manufacturing industry.
Smart MFG Tech promotes digital transformation of industrial manufacturing supply chains using blockchain as a key building block of Industry 4.0. MFG Tokens® incentivize collaboration and speed across supply chains and can be used to create custom rewards and compensate manufacturers for time and accuracy put into competitive tender bids.
The token integration use case applications in Manufacturing Supply Chains include digital record and digital asset tokenization, advanced supplier incentive programs and supply chain decentralized finance innovation. Supply Chain Companies interested in Smart MFG partnerships can submit your requests here: http://smartmfg.io/partners
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