Inattentive unfavorable weather occurrences contribute to economic losses in various sectors, and as we experience the changing climate, these events are becoming more frequent. Examples include decreased agricultural yields during drought, interrupted transport routes during snowstorms, canceled sporting events during heavy precipitation, and existential threats and infrastructure collapse resulting from high-volume poor weather.
Making the weather data accessible directly in financial markets is another possible way to reduce weather-related losses. It provides a way to enhance predictions since marketers with more accurate weather models would outperform in weather forecasting capitals.
However, as possible impacts grow, potential risks also increase. As companies begin to include intelligent contracts — trust-minimized digital agreements for blockchain networks — in their business operations, data driving these contracts is essential and is supplied safely and reliably.
Offers Corporate Benefits
A solution, created to send weather data from Google BigQuery to Ethereum, a clever contract platform hosting the biggest DeFi markets, through Chainlink (a blockchain oracle solution protecting $30B+ for smart contract ecosystems).
Furthermore, blockchain-based intelligent contract solutions offer corporate benefits by minimizing counterparty risks. Thus, speeding up the settlement, and decreasing the friction of financial contracts. With meteorological data (e.g., rainfall) as input, intelligent contracts may further allow forecast markets where players can agree on.
Such agreements enable companies to hedge against severe temperature, wind speed, precipitation, and other weather variations. This hedging affects the profitability and, in certain instances, the viability of some sectors.
But intelligent “on-chain” contracts cannot natively access external “off-chain” weather inputs. This blockchain security characteristic implies that a blockchain oracle bridging component is necessary to construct hybrid blockchain/cloud applications.
Chainlink is a major supplier of data feeds for blockchain-based intelligent contracts. It has completed the addition of decentralized Google Cloud weather data.
Chainlink pipes in data from the Big Query Google Cloud, containing U.S. National Ocean and Atmospheric Administration (NOAA) meteorological data and other sources.
The Google connection to Chainlink uses an oracle node that continuously sends data from outside the globe to the network Chainlink. A blockchain application, fused in aggregated form.