Reserve

Chainlink

<p>The integration of Chainlink <a href="https://chain.link/proof-of-reserve" target="_blank" rel="noopener noreferrer nofollow">Proof of Reserve</a> (PoR) is something that Backed is pleased&nbsp;to announce. With this feature, users may now verify the collateralization of its&nbsp;tokenized assets in a transparent and trust-minimized manner.</p>
<p>Users may rest well knowing that their investments are properly collateralized thanks to Backed’s implementation. With PoR, users may now independently confirm the sufficiency of collateral reserves on-chain at any moment. In order to preserve the integrity of tokenized assets, this is essential.</p>
<h3 class="wp-block-heading" id="h-operation-of-proof-of-reserves-solution">Operation of Proof of Reserves Solution</h3>
<p>As soon as we get the money from a user who purchases bTokens, we instantly acquire the underlying asset as collateral. We give our broker an order to purchase the underlying asset. The user then receives the tokens from us. This whole procedure typically takes a few minutes, although we always aim to improve its efficiency.</p>
<p>Our auditing API’s operator is the Network Firm. They may continuously see the balances of our bank accounts and have read-only access to them. Every ten minutes, they refresh the API data.</p>
<p>Since it takes several days for securities to settle in our bank account, in-transit securities are likewise considered as a distinct data point. We provide internal transaction data to the Network Firm, which ensures the underlying assets are on their way to our Swiss custodian.</p>
<p>The&nbsp;decentralized&nbsp;oracle network of Chainlink Proof of Reserve then verifies this aggregated data. Every day, or more often if the amount of reserves fluctuates by more than 10%, the statistics sent by <a href="https://thenewscrypto.com/tag/chainlink/" target="_blank" rel="noopener noreferrer nofollow">Chainlink</a> PoR are updated.</p>
<p>Our proof of reserves solution for our most popular products is based on this data. The amount of collateral we have acquired and held is publicly listed on our website and accessible on-chain.</p>
<blockquote class="wp-block-quote">
 <p>“When we first set up Backed, we knew how important it would be to have verifiable, on-chain, transparent data that proved our assets were fully collateralized. Integrating Chainlink Proof of Reserve is a major milestone in achieving the company’s goal of creating products that are verifiably backed 1:1 and fully composable.”—Adam Levi, Co-founder</p>
</blockquote>
<h3 class="wp-block-heading" id="h-why-is-proof-of-reserves-por-crucial">Why is Proof of Reserves (PoR)&nbsp;crucial?</h3>
<p>Never before has proving proper asset collateralization been more crucial. By offering transparent, independently verifiable data that is regularly updated and accessible on-chain, we want to earn your confidence. Users may be sure that the quantity of bTokens will match the quantity of the underlying asset possessed thanks to the data provided.</p>
<p>As mandated by Swiss legislation, we already go through routine audits. With this new advancement, the data is now publicly available and the frequency of data points has significantly increased. Because of the increased usefulness that results from putting the data on-chain, third parties who use our products may create their own mechanisms&nbsp;to prove the legitimacy of their business&nbsp;practices.</p>
<h3 class="wp-block-heading" id="h-what-is-the-mechanism-of-chainlink-proof-of-reserve-por">What is the Mechanism of Chainlink Proof of Reserve (PoR)?</h3>
<p>The information required to determine the correct collateralization of any on-chain asset backed by off-chain reserves is sent to smart contracts via Chainlink PoR.</p>
<p>Chainlink Proof of Reserve, which is run by a&nbsp;decentralized&nbsp;network of oracles, allows for the autonomous real-time verification of collateral and helps safeguard user money against fraudulent&nbsp;behavior&nbsp;and unanticipated fractional reserve&nbsp;practices.</p>
<p>Chainlink PoR is used for automated on-chain verification that provides users with a better assurance of an asset’s underlying collateralization and raises the level of transparency around asset collateralization, as opposed to requiring users to rely only on paper guarantees.</p>
<h3 class="wp-block-heading" id="h-significance-of-tracking-in-transit-securities">Significance of Tracking In-transit Securities</h3>
<p>Keeping track of conventional financial assets before they settle in our custodian’s accounts is one of the trickier aspects of this integration. Conventional financial assets might take two to three days to arrive. There are issues with transferring conventional money onto <a href="https://thenewscrypto.com/tag/cryptocurrency/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a> rails that need for special solutions.</p>
<p>We provide The Network Firm and Chainlink access to our internal transaction data via an API, strengthening the assurance that our tokens are collateralized even while the underlying assets are being transferred from our broker to our custodian. Users may rest easy knowing that their bTokens are always backed 1:1 as a result.</p>
<p><a href="https://por.backed.fi/" target="_blank" rel="noopener noreferrer nofollow">Click here to see our Proof of Reserves dashboard.</a></p>

Backed Implements Chainlink Proof of Reserve for Tokenized Real-World Assets (RWAs)

Table of Contents

TheNewsCrypto

Other articles published on Oct 26, 2023

Investors Are Pricing-in the Spot Bitcoin ETF Approval: Expert

XRP Price Prediction: October End 2023

Floki Coin: The Rise of a Meme Coin and the Future of Tokenization

Pepe’s Spectacular 93% Surge, What Soaring Its Price?

IBM Stock Price Analysis: Will IBM Stock Break the 200-Day EMA?

United Kingdom Parliament Approves New Crypto Regulations to Combat Illegal Payments

Join our free newsletter for daily crypto updates!