Dock is excited to announce that we are integrating Chainlink Price Feeds to enable issuers to price identity services on the Dock network in USD. In addition to this DOCK/USD decentralized price oracle, we are looking into using Chainlink to make other fiat exchange rates available on the platform in the future, as well as allowing our credential data to be accessed by smart contracts in other blockchain ecosystems.
The Need for Chainlink
Following Dock’s mainnet release earlier this year, which enables organizations to create, issue, and revoke verifiable credentials, our business development team has been steadily working with organizations interested in issuing credentials on Dock.
While the use cases are varied and span several industry sectors, they do share a common element beyond their desire to unlock the potential of verifiable credentials. They require their network operation costs, such as those to create decentralized identities or to revoke credentials, to be available in fiat currency. This stands to reason as almost all their costs are in fiat and they don’t want to bear the burden of exchange rate risk.
Of course, the Dock token serves as an integrated payment mechanism on the network. However, this is the network’s only notion of value. The Dock Network currently has no concept of different currencies and rates of exchange. Thus, the Dock Network requires a blockchain oracle to source this data from off-chain, so it can be integrated into our on-chain dApps.
Pricing in USD
Once integrated, Chainlink’s decentralized oracle network will provide a DOCK/USD Price Feed that Dock Network will use to calculate the transaction fees users must pay in DOCK tokens given their original stated price in USD. The prices will be updated on an ongoing basis via a decentralized network of Chainlink nodes, ultimately serving as the standard benchmark for exchange rates on all Dock Network operations.
We selected Chainlink because it's the most battle-tested oracle solution in the market, with its Price Feeds already widely relied on by leading DeFi projects to secure billions of dollars in value. Here are some of the key features we found valuable when it comes to Chainlink Price Feeds:
- High-quality price data sourced from premium off-chain aggregators, providing volume-weighted market coverage across all trading environments to mitigate exchange rate risk.
- Security reviewed oracle nodes run by leading security and blockchain DevOps teams, ensuring Dock Network has reliable oracle services with Sybil attack protection.
- Decentralized infrastructure at both the data source and oracle node levels, providing developers with highly available and manipulation resistant data and oracles.
- A proven mainnet solution already live in production, making it easy for developers to quickly integrate new and existing Price Feeds into their applications.
While the Price Feeds will provide Dock Network with the ability to solve its immediate need for reliable fiat pricing, ultimately the Chainlink Network provides us with a general-purpose oracle solution that can be used to interoperate with any external system, removing all limits to the data that Dock developers can bring into their applications or what data they can send to other networks.
“Dock Network is using blockchain technology to redefine how people around the world create, issue, and revoke verifiable credentials,” said Dock CEO Nick Lambert. “Integrating a Chainlink-powered DOCK/USD Price Feed brings the familiarity of fiat to the Dock Network, enabling enterprises and end-users to more easily interact with and adopt Dock apps without having to worry about backed cryptocurrency processes. Chainlink’s market-leading oracles ensure that all Dock services are priced at fair market exchange rates, in a manner that’s highly accurate, reliable, and tamperproof.”
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 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.
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Dock is a platform designed to provide a simple solution for businesses and developers to build, manage and present digital credentials that are instantly verifiable using blockchain technology.
With a standalone blockchain and integrated payment and incentivization token, a trusted network of validators, and seamless adoption and interoperability, Dock is part of a movement to solve universal problems with existing data and how it is captured, shared and controlled.