Home
News
Chainlink has developed a “Proof of Reserve” Technology and has made a strategic partnership with Social Scan.
Consider a logistics company that uses a blockchain to track their shipments but cannot communicate with the one they use to make payments. This could cause many issues. The problem is that each blockchain is a separate entity. The need to rely on a source outside the blockchain to provide accurate information has always been a weak point when it comes to obtaining and supplying information to the outside world. So, what is the solution?
How Chainlink Solves The Verification Problem
Chainlink is a decentralized oracle network that enhances smart contract capabilities by providing reliable data from various sources. Chainlink then provides a single, validated data point to the smart contract, reducing the risk of a centralized point of failure.
Chainlink’s use cases include accessing interest rates and pricing assets by decentralized finance (DeFi) applications to automating contract settlements. Additionally, insurance companies can use Chainlink to settle crop contracts based on parameters such as the quantity of temperature rainfall. You can read about other Oracle applications here.
Proof of Reserve Technology for Chainlink
As for Chainlink, the leading project in decentralized oracle innovations, progress does not stop and continues at a rapid pace. A few days ago, the protocol team announced the implementation of the “Proof of Reserve” technology for the exchange-traded fund issuer Ark Invest.
Chainlink will be responsible for verifying the Ark Investment fund’s reserves in real-time, which, by providing spot exposure to its investors on the Bitcoin market, must ensure a 1:1 collateralization with the underlying asset.
This is just the beginning of all the progress made by Chainlink last year, with the project becoming the undisputed leader in the tokenization of real assets, thanks to the support of the Swift network.
In recent developments, Chainlink (LINK) solidified partnerships to enhance transparency and functionality within the crypto space. One partnership involves 21Shares, a cryptocurrency ETF issuer, which has integrated Chainlink’s Proof of Reserve technology to ensure transparency for both on-chain and off-chain assets.
Chainlink’s strategic alliance with SocialScan
Additionally, Chainlink Labs has formed a strategic alliance with SocialScan, a platform that specializes in community-owned LLMs (Linked Learning Modules) designed to facilitate navigation within the blockchain ecosystem.
This collaboration aims to support Chainlink SCALE members by developing essential tools such as block explorers, enabling easier access to on-chain data and AI.
SocialScan offers preferential pricing to SCALE members, providing discounted rates and reduced integration costs. These developments coincide with the surge in Chainlink’s token price.
The token is showing positive performance compared to its sale price. It is trading near its cycle high. LINK’s recent rebound from a significant resistance level and the formation of an uptrend pattern suggests that the upward trend could continue.
Summary
The protocol team announced “Proof of Reserve” implementation for Ark Invest’s ETFs linked to the crypto market. Chainlink will verify the fund’s reserves in real-time. Additionally, Chainlink Labs formed an alliance with SocialScan to support Chainlink SCALE members by developing essential tools such as block explorers for easier access to on-chain data and AI.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
