Global Tax Blockchain Link
How Google Maps interacts with the Ethereum Blockchain to display global indirect tax rates
Blue Antoinette to Launch a Chainlink Node to Make Global Tax Solutions Available to Smart Contracts
With the rapid increase in financial applications being launched on blockchain-based smart contract platforms, there is increasing demand for tax information from developers building these “DeFi” products. This is especially important for organizations that want to sell their products via public blockchains and decentralized platforms and to accept cryptocurrencies under applicable law.
In order to service this new and growing demand, we are pleased to announce that Blue Antoinette will launch our own official Chainlink oracle node to make our Global Tax solutions (GT4M) available to smart contracts. The Chainlink node provides us with a universal gateway for getting our existing APIs blockchain-enabled across the leading smart contract platforms. By doing so, we can provide our tax data and solutions directly to blockchain applications, as well as sign our data on-chain using a unique cryptographic signature (private key) to prove that all data submitted by our node is tamperproof and directly from Blue Antoinette.
Our Chainlink node, which runs on the most widely used oracle network in the industry, gives developers across various blockchains access to our entire suite APIs. Not only does this exposure to new markets enhance our ability to earn more revenue, but businesses will be able to build innovative solutions on the blockchain under consideration of potential tax relevant information. This helps fill a needed gap in automated on-chain tax services and enables an entirely new crop of applications to emerge that require financial compliance as a foundational primitive.
Building Tax-Compliant Smart Contracts Using Blue Antoinette and Chainlink
Our Global Tax Rate APIs (GT4M) allow businesses to build on-chain applications that calculate indirect taxes in real-time based on combining up-to-date tax rates with on-chain financial transactions. Using the GT4M solution, financial services providers, merchants or marketplaces can define global tax rules for VAT, sales tax, GST, and any other indirect taxes. This allows businesses to build tax-compliant eCommerce solutions that utilize smart contract backends and dApp developers to build on-chain tax services specifically tailored for DeFi.
While there are numerous possibilities around automated on-chain tax compliance, there is a fundamental limitation, smart contracts cannot natively make API calls to external systems. Thus, smart contracts cannot not access current tax rate data. In order to overcome this, smart contracts need to make use of a blockchain oracle, which retrieves external data, attest to its validity, and broadcast it on the blockchain for consumption.
Upon reviewing various oracle solutions, we identified Chainlink as providing the most extensive set of capabilities towards maximizing our ability to monetize GT4M usage within the smart contract economy. Some of the key features of being a node operator on the Chainlink Network include:
· Data Signing – the Chainlink node cryptographically signs every piece of data it posts on-chain, allowing us to provide clear proof that the data originated from our API.
· Blockchain and API Agnostic – Chainlink nodes can integrate with any blockchain and API, providing us with a single gateway to sell our data to all blockchains and from any API that exists both now and in the future.
· Large Addressable Market – The Chainlink Network is the most widely used oracle solution in the smart contract economy, presenting us with a large and growing market of potential users that include large and small projects alike.
· Time-Tested Infrastructure – Chainlink is thoroughly audited open-source software that collectively secures billions of dollars in value on mainnet, proving its ability to protect and trigger the movement of real economic value.
These are just a few of the many reasons why we are confident in the Chainlink Network and look forward to joining its fast-growing ecosystem. A parallel financial system is being built using a new tech stack: blockchains, smart contracts and oracles. Through Chainlink we can take an active role in its provisioning by supplying tax data directly to developers building next generation applications on it, both expanding our own addressable market and supporting the creation of new financial products.
“The rapid increase in DeFi development and adoption is putting increasing demands on tax solutions to service the wide variety of unique financial applications being deployed,” said Blue Antoinette CEO Robert Schmid. “Running our own Chainlink node allows Blue Antoinette to be directly involved via providing key tax data solutions to businesses, developers and/or applications, ultimately empowering more efficient ways to automate compliance on-chain across different jurisdictions.”
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.
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About Blue Antoinette:
Blue Antoinette is a diversified technology group. It provides Global Tax Solutions, a Commerce Cloud, an Online Marketplace, highly specialized software and global services.