The team behind Chainlink (LINK) says the decentralized oracle network is offering a service that can address the transparency issues in the crypto industry after the recent FTX fiasco.
According to Chainlink Labs, the blockchain’s Proof of Reserve Solution (PoR) is designed to prove the reserve data of projects and organizations, including exchanges, stablecoins and traditional financial institutions.
The system works by automatically updating on-chain smart contracts when the balance in reserves changes.
“Crypto is at a crossroads. Will crypto continue to repeat the mistakes of the traditional black-box financial industry? Or will a better system emerge? A better system is possible, & Proof of Reserve is one way Chainlink is providing the transparency that users demand.”
The service was launched in 2020, but Chainlink Labs is actively promoting the service now following the collapse of FTX.
What was once the second-largest crypto exchange is now under investigation over the potential mishandling of customer funds. FTX CEO Sam Bankman-Fried reportedly lent billions of dollars worth of customers’ assets to trading firm Alameda Research, which he also managed until last year.
Says Chainlink Labs,
“Crypto should not keep recreating the flaws of the traditional financial system. Crypto should be about building an open and transparent global economy. Let’s build a better Web3 based on Proof Not Promises.”
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