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- Bitcoin reserves promoter dlcBTC has integrated Chainlink to boost cross-chain capabilities.
- dlcBTC empowers Bitcoin holders to unlock the potential of DeFi while retaining control of their assets.
Chainlink, a leader in decentralized oracle networks has thrown its support behind DLC.Link with its cross-chain capability to enhance dlcBTC adoption. DLC.Link has also integrated Chainlink’s Proof-of-Reserve (PoR) on Arbitrium mainnet to improve the transparency of the reserves backing dlcBTC.
DLC.Link Integrates With Chainlink
As revealed in a blog post, the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and PoR by DLC.Link comes through a strategic partnership. This partnership empowers users with enhanced confidence and facilitates seamless cross-chain movement of dlcBTC, a non-custodial wrapped Bitcoin.
dlcBTC users can now enjoy greater peace of mind by integrating Chainlink PoR. This automated system continuously verifies that sufficient Bitcoin collateral backs every minted unit of dlcBTC. Acting as an independent oracle, Chainlink PoR eliminates the possibility of over-issuance and ensures perfect backing by Bitcoin reserves.
Also, dlcBTC users can leverage the power of Chainlink’s CCIP to transfer their holdings across Arbitrum and Ethereum blockchains. This integration eliminates friction and empowers users to navigate the Decentralized Finance (DeFi) ecosystem with their Bitcoin assets.
dlcBTC empowers Bitcoin holders to unlock the vast potential of DeFi while retaining complete control of their assets. This innovative solution leverages Discreet Log Contracts (DLCs) to safeguard Bitcoin in a multi-signature UTXO, where one key rests with the user and the others are dispersed across a decentralized network.
This strategic collaboration with Chainlink holds profound benefits for the dlcBTC ecosystem. Anyone can independently verify the collateralization of dlcBTC assets in near real-time through Chainlink’s publicly accessible PoR feeds. Moreover, Chainlink PoR removes centralized control points, ensuring the consistent and reliable delivery of data regarding dlcBTC’s reserves.
Chainlink’s CCIP Leads Secure DeFi Integrations
The selection of Chainlink was not without premise. Chainlink’s proven record of unwavering security and reliability aligns perfectly with DLC.Link’s commitment to prioritize the safety of users’ funds. Furthermore, CCIP is supported by the independent Risk Management Network, a vigilant guardian that constantly monitors cross-chain operations for any signs of irregularity.
“Chainlink has an unmatched track record in security, which is why we decided to use the industry-standard Proof of Reserve to help enhance the transparency of the Bitcoin reserves backing dlcBTC,” stated Aki Balogh, Co-Founder, DLC.Link.
Chainlink has grown to become a key player in DeFi integration. As previously reported by Crypto News Flash, Chainlink’s CCIP now supports nine prominent blockchains. Among them are Base, Avalanche, WEMIX, Ethereum, Kroma, Arbitrium, Polygon, Optimism, and BNB Chain. With this support, Chainlink aims to improve token transfers and smart contract functionality for users.
Meanwhile, the decentralized Oracle network recently announced the use of its CCIP in the integration between DTCC and the new Smart NAV Pilot. Reiterating Crypto News Flash’s earlier reports, the goal of this pilot project is to assess the feasibility of delivering price and rate data on a Distributed Ledger Technology (DLT) platform.
Chainlink’s efficiency has brought its native token LINK to the forefront of the crypto market. As of this writing, LINK is trading at $14.29, demonstrating a 3.5% increase in the past day, with trading volume standing at $413.3 million.