Inflation Protocol

Open protocol to calculate inflation, for every country, automatically

Comment

Inspiration

Inflation is a critical economic indicator that reflects the health and stability of an economy but getting that information into blockchains is difficult. At the moment, organizations like trufflation provide inflation data to blockchains but only for the U.S. and U.K. With Inflation Protocol we aim to provide inflation data for any country.

What it does

The fundamental concept is as follows:

  1. Users interact with the contract to provide prices of different products using a commit-reveal mechanism.
  2. After the commit-reveal period concludes, Chainlink Automation is triggered to calculate the changes in price.
  3. If the user's provided data falls within a certain range of the calculated prices, they are rewarded with tokens.
  4. Chainlink Automation creates a new contract for users to interact with for the following month, and the process repeats.

How we built it

The project was built using Solidity with Chainlink Automation for the backend and NextJS with TypeScript for the frontend. Smart contracts were developed to facilitate the submission and calculation of price data. Chainlink Automation was integrated to automate the process of creating new contracts and calculating the percentage change in prices.

Challenges we ran into

One of the main challenges was designing the smart contracts in a way to do the right calculations and keep track of how the prices changed.

Accomplishments that I'm proud of

The design of the smart contracts and how they interact is something that I am proud of, because the design is a bit tricky. Also, the project's ability to incentivize participants and foster data contribution in a permissionless way was a great accomplishment.

What I learned

I improved what I know about smart contract development, how to make a commit-reveal scheme, how routing works in NextJS. Also learned how to automate with Chainlink keepers which is very straightforward

What's next for Inflation Protocol

  • The project could be expanded to measure and track other economic indicators, such as unemployment rates or GDP, using similar blockchain-based methodologies.
  • The goal is to establish the Inflation Protocol as a reliable and comprehensive tool for measuring and monitoring inflation on a global scale.

Built With

Share this project:

Updates