DeFi
Chainlink enhances dlcBTC with cross-chain capacity
- Bitcoin reserves promoter dlcBTC has integrated Chainlink to strengthen cross-chain capabilities.
- dlcBTC allows Bitcoin holders to unlock the potential of DeFi while maintaining control of their assets.
Chain link, a leader in decentralized oracle networks, has supported DLC.Link with its cross-chain capability to improve the adoption of dlcBTC. DLC.Link has also integrated Chainlink’s Proof of Reserve (PoR) onto the Arbitrium mainnet to improve the transparency of reserves supporting dlcBTC.
DLC.Link integrates with Chainlink
As revealed by a blog post, the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and PoR by DLC.Link involves a strategic partnership. This partnership gives users increased confidence and facilitates the 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 continually verifies that sufficient Bitcoin collateral backs each unit of dlcBTC issued. Acting as an independent oracle, Chainlink PoR eliminates the possibility of excessive issuance and guarantees perfect support of Bitcoin reserves.
Additionally, dlcBTC users can leverage the power of Chainlink’s CCIP to transfer their holdings to the Arbitrum and Ethereum blockchains. This integration removes friction and allows users to navigate the decentralized finance (DeFi) ecosystem with their Bitcoin assets.
dlcBTC allows Bitcoin holders to unlock the vast potential of DeFi while maintaining full control of their assets. This innovative solution leverages Discrete Log Contracts (DLC) to protect Bitcoin in a multi-signature UTXO, where one key is owned by the user and the others are dispersed across a decentralized network.
This strategic collaboration with Chainlink has profound benefits for the dlcBTC ecosystem. Anyone can independently verify the collateralization of dlcBTC assets in near real-time via Chainlink’s publicly available PoR feeds. Additionally, Chainlink PoR removes centralized checkpoints, ensuring the consistent and reliable delivery of data regarding dlcBTC reserves.
Chainlink’s CCIP Leads Secure DeFi Integrations
The selection of Chainlink was not without premise. Chainlink’s proven track record of unwavering security and reliability aligns perfectly with DLC.Link’s commitment to prioritizing the safety of user funds. Additionally, CCIP is backed by the Independent Risk Management Network, a vigilant watchdog that constantly monitors cross-chain operations for any signs of impropriety.
“Chainlink has an unrivaled track record of security, which is why we decided to use the industry standard proof of reserve to help improve the transparency of the Bitcoin reserves backing dlcBTC,” said Aki Balogh, co-founder of DLC.Link.
Chainlink has become a key player in DeFi integration. Like before reported by Crypto News Flash, Chainlink’s CCIP now supports nine major 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, decentralized network Oracle recently announced the use of its CCIP in the integration between DTCC and the new Smart NAV Pilot. Reiterating previous reports from Crypto News FlashThe objective of this pilot is to evaluate the feasibility of providing price and tariff data on a distributed ledger technology (DLT) platform.
Chainlink’s efficiency has brought its native token LINK to the forefront of the crypto market. At the time of writing, LINK is trading at $14.29, demonstrating a 3.5% increase over the past day, with trading volume standing at $413.3 million.