The post 21.co Integrates Chainlink Proof of Reserve for 21BTC Transparency appeared on BitcoinEthereumNews.com.

21.co Integrates Chainlink Proof of Reserve for 21BTC Transparency 21.co has integrated Chainlink’s Proof of Reserve mechanism to enhance the transparency of its wrapped Bitcoin product, 21BTC, on Ethereum and Solana, according to CryptoSlate. This integration allows for real-time verification of 21BTC’s 1:1 Bitcoin backing, aiming to boost user confidence in the platform’s reliability. Launched on Solana in May 2024 and Ethereum in September 2024, 21BTC offers users the assurance that their assets are fully backed by Bitcoin reserves, with Chainlink’s Proof of Reserve serving as the key tool for transparent verification. Chainlink Proof of Reserve for Enhanced Transparency By integrating Chainlink Proof of Reserve, 21.co is providing users with real-time data on the reserves backing 21BTC, ensuring that the wrapped Bitcoin product is fully collateralized at all times. This transparency is crucial for fostering trust in 21BTC, particularly in the current market where scrutiny of wrapped tokens and their underlying assets has increased. The Proof of Reserve mechanism allows for automated verification of the 1:1 backing, ensuring that users can easily track the reserves that support 21BTC. This integration marks an important step toward enhancing transparency and accountability in the wrapped token market. Comparison with Coinbase’s cbBTC While 21BTC emphasizes transparency through its integration with Chainlink, Coinbase’s cbBTC has faced criticism for its lack of transparency, despite its rapid growth. Within two weeks of its launch, cbBTC saw a $1 billion trading volume and amassed a $170 billion market cap, yet concerns have arisen over its reserve reporting practices. The stark contrast between 21BTC’s transparent model and cbBTC’s criticized opacity highlights the growing demand for real-time verification of reserves in the crypto space, particularly when it comes to wrapped Bitcoin products. 21BTC: Building User Confidence with Proof of Reserve The decision by 21.co to utilize Chainlink’s Proof of Reserve…

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Filed under: News - @ September 24, 2024 6:26 am