Transak Integrates with Chainlink to Connect Smart Contracts with Fiat / Crypto Payment Gateways
Transak is proud to announce an integration with Chainlink, the market-leading decentralized oracle network, that will make our fiat/crypto onramp aggregator solution available to smart contracts. Through Chainlink’s external adapter technology, Chainlink nodes can bi-directionally connect decentralized applications directly to Transak’s API, allowing dApps to initiate the buying and selling of crypto using traditional fiat payment gateways. It also allows Transak’s API to trigger on-chain transactions in DeFi protocols. Transak’s API currently supports over 200 cryptocurrencies and fiat payments in 10 fiat currencies in 28 countries.
Bringing Traditional Payment Methods to Smart Contracts
One of the major limitations to smart contracts is their inability to natively access external systems, which prohibits them from interacting with fiat payment gateways. Most of the world uses fiat currency as the predominant method of transferring value, creating a barrier to entry for many potential crypto users.
An oracle is a piece of middleware that connects smart contracts to external systems. Chainlink is a decentralized oracle network that extends the security guarantees of a smart contract, allowing it to take in data and send commands to external systems in a highly secure and reliable manner. This brings end-to-end functionality and security to decentralized applications.
While there are a plethora of new opportunities created by connecting smart contracts to Transak’s crypto/fiat gateways, we have identified three initial use cases that bring immediate value to crypto users and decentralized applications.
Recurring crypto to fiat and fiat to crypto payments
A prime example would be using a service like Sablier to customize a payout schedule, particularly as a recurring payment. This has already gained traction for paying salaries in crypto and can be further extended to situations where the employer wants to pay in crypto but the employee wants to receive fiat, or vice versa. This brings flexibility to payment schedules, allowing both parties to interact with the currency of their choice.
Real-World Examples include: Allowing people to withdraw a percentage of their salary automatically from their crypto wallet to their fiat bank account every month/quarter/or instantly. Similarly, companies can use centralized data, such as from wakatime, to pay developers automatically based on the number of hours they spent on the project
Crypto to fiat payments triggered by on-chain data
An applicable example would be an insurance payout that is triggered by a DeFi dApp such as Nexus Mutual. This allows developers to build DeFi products that trigger settlements, which payout in fiat directly to a user’s traditional bank account using local payment methods. dApps could use this capability to abstract out the end-users interaction with cryptocurrency, meaning they could use an application and reap any rewards without ever needing to learn how to trade cryptocurrency, setup wallets, etc.
Real-World Examples: DeFi protocols can make interest payments in fiat directly to the user’s bank account. Additionally, service providers can be paid in fiat using crypto funds stored in a smart contract, e.g. a DAO paying for office space.
Automated on-chain allocation of funds based on fiat/crypto payments
The idea here is to create a smart contract that automatically allocates a user’s funds into a specific on-chain portfolio immediately upon the fiat purchase of crypto using Transak. For example, the user buys 1000 DAI with fiat, which automatically invests in a portfolio that’s 25% in Idle, 25% in TokenSets, and 50% in DSR. This allows users to automate portfolio management directly through Transak’s fiat/crypto payment gateway, removing tedious work for the end-user.
Real-World Examples: Receiving fiat payments to a smart contract, such as a DAO, and automatically allocating it into a specified crypto portfolio.
There are numerous other use cases that open up for smart contracts by combining the fiat/crypto on-ramps of Transak and the secure and reliable connectivity of Chainlink’s decentralized oracle network.
“This integration is one of those moments when you realize that smart contract technology is not just a theoretical construct used by crypto natives, but it can actually interface with the real world. Through an integration with Chainlink, smart contracts can now use Transak to enable fiat deposits and withdrawals from mainstream users who don’t own or understand crypto, substantially lowering the barrier to entry for larger retail adoption of blockchain applications.
Sami Start, Transak Co-Founder and CEO
Transak is an integration for applications to accept fiat-to-crypto deposits and withdrawals from a global user base. It does this by aggregating local compliance, payment methods and liquidity from around the world. The Transak product is a widget or API that can be integrated into an app in just a few lines of code. Transak is backed by Consensys and graduated from the Tachyon accelerator program.
You can use Transak to buy over 200 cryptocurrencies in 28 countries (more coming soon). Check it out here: https://global.transak.com.
To learn more about Transak, visit: https://transak.com/
Applications can integrate their own fiat gateway with Transak here: https://transak.com/integrate
If you’re a developer and want to connect your smart contract to existing data and infrastructure outside the underlying blockchain, reach out to us here! We can help you quickly and securely launch your data-enabled application or Chainlink Price Reference Data Contract on mainnet today. You can also visit the developer documentation or join the technical discussion on Discord. Learn more by visiting the Chainlink website or follow us on Twitter or Reddit.
Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. It is well known for providing highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, Conflux, and many others.
Note: chainlinkecosystem.com does not claim any ownership of this content, all credit to Transak, view official announcement.