[Chainlink enhances dlcBTC through transparency and cross-chain functionality]
Chainlink, the leader in decentralized oracle networks, supports DLC.Link, whose cross-chain capabilities will enhance dlcBTC adoption. DLC.Link integrates Chainlink’s Proof of Reserve (PoR) on the Arbitrum mainnet to increase transparency of dlcBTC reserves.
According to the blog post, DLC.Link has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and PoR through a strategic partnership. This collaboration gives users greater confidence and facilitates the seamless movement of dlcBTC, a non-custodial wrapped Bitcoin, across chains.
With the integration of Chainlink PoR, dlcBTC users can enjoy greater peace of mind. This automated system continuously verifies that each unit of dlcBTC issued is adequately collateralized by Bitcoin, eliminating the possibility of over-issuance and ensuring that each unit of dlcBTC is backed by a perfect Bitcoin reserve.
Additionally, dlcBTC users can leverage Chainlink’s CCIP to transfer their holdings between the Arbitrum and Ethereum blockchains. This integration removes friction and gives users more flexibility to use Bitcoin assets to operate in the decentralized finance (DeFi) ecosystem.
dlcBTC enables Bitcoin holders to unlock the vast potential of DeFi while maintaining full control of their assets. This innovative solution uses Discrete Log Contracts (DLC) to secure Bitcoin in multi-signature UTXOs. The user owns one key and the other keys are distributed in the decentralized network.
This strategic cooperation with Chainlink has brought far-reaching benefits to the dlcBTC ecosystem. Anyone can independently verify the collateral status of dlcBTC assets in near-instantaneous fashion via Chainlink’s public PoR data source. Additionally, Chainlink PoR eliminates centralized points of control, ensuring that data about dlcBTC reserves is always reliable and consistent.
Chainlink has an unrivaled record of security and reliability, which is fully consistent with DLC.Link’s commitment to prioritizing the safety of user funds. Additionally, CCIP is supported by an independent risk management network that constantly monitors cross-chain operations for any signs of anomalies.
