A Strategic Collaboration
Backed, a leading fintech firm, announced that it is teaming up with Chainlink (the popular Web3 services platform) to integrate its Proof of Reserve (PoR) technology. The partnership represents a significant advancement for Backed users as they will have a reliable way to determine whether their tokenized assets are adequately backed up.
A side benefit of this PoR integration is that it increases the level of trust Backed users have in this platform because they know their investments are secure. With the latest development, Backed has reaffirmed its commitment to enhancing transparency and user trust.
Streamlining Asset Acquisition Process For bTokens
It is worth noting that Backed has transformed its method for acquiring bTokens (the platform’s governance asset) to provide faster and more efficient services. When users purchase bTokens, the corresponding asset is quickly secured as collateral.
This service entails submitting an order to the broker to acquire the underlying asset. The tokens are then transferred to the user. Surprisingly, this entire process is frequently completed in minutes, illustrating Backed’s improved efficiency.
In another move to boost operational efficiency, Backed has reportedly partnered with The Network Firm to ensure transparency and accuracy in its auditing process. The company specializes in auditing API and could access Backed’s custody bank accounts.
This access enables them to continuously monitor and manage account balances and update API data every 10 minutes. Furthermore, securities in transit are diligently recorded as separate data to account for the natural time lag in reaching the bank account.
This detailed internal data audit, which confirms the entry of assets, is shared openly with Backed’s custody platform—Chainlink Proof of Reserve. The Chainlink PoR will also validate this information.
It confirms the aggregate data and ensures its accuracy. It is worth noting that Chainlink PoR updates its data daily or whenever the reserve volume fluctuates by over 10%.
Adopting Cutting-Edge PoR System
One of the ways Backed has improved transparency and confidence in its most popular products is by implementing an innovative PoR system. This consolidated data is easily accessible on their official website and the blockchain network, providing convincing proof of reserves.
On the other hand, the Chainlink PoR mechanism is also critical as it provides data to smart contracts. This enables them to accurately assess the level of collateralization for on-chain assets backed by off-chain reserves.
The good news is that the system is designed to provide real-time collateral validation via a decentralized network of oracles. This method protects user funds from random fractional reserve practices and financial fraud.
Unlike traditional paper-based assurances, the Chainlink PoR system enables automated blockchain verification. This revolutionary approach exemplifies increased transparency in asset collateralization, a novel act in asset management.
Backed’s implementation of this Proof of Reserves system shows its commitment to providing its users with a secure and transparent setting. Furthermore, users have more confidence in the collateralization of their assets, knowing that Backed is using cutting-edge technology to protect them.