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Swingby partners with Chainlink to secure Bitcoin Bridge – Press release Bitcoin News
press release
PRESS RELEASE. Swingby has recently announced a newly established partnership with Chainlink for Proof of Reserve. The recently announced partnership aims to help secure the Swingby Skybridge that connects the Bitcoin blockchain, enabling the introduction of BTC into the Ethereum network.
Swingby is developing a more advanced and secure BTC bridge
Swingby is a BTC bridge ecosystem with plans to expand to other blockchain ecosystems in addition to Bitcoin and Ethereum, which the platform has already achieved. In fact, the advancement in platform security enabled by the partnership makes Swingby the only BTC bridge protected against a WBTC depegging event.
In a Swingby announcement announcing the partnership, it was also revealed that the Bitcoin bridge protocol chose Chainlink Proof of Reserve, due to what was proclaimed in the details of the announcement to be critical features offered by Chainlink’s oracle service.
Proof of reservation provides verifiable transparency and security
With the recent increase in the incidence of blockchain ecosystem crashes, catastrophic depeggings, sudden shutdowns, bankruptcies and more, this is a time when transparency and security have become even more important than ever before in the blockchain industry.
Swingby made the decision to equip the protocol to use Proof of Reserve as a transparency measure that protects the bridge from completing transfers that are not verifiably present in reserves supporting token supply.
The Swingby announcement describes that the integrated Proof of Reserve will check to ensure that the number of BTC held in custody in reserve wallets matches the amount of WBTC tokens on the Ethereum network. If there is a discrepancy between the numbers, the Proof of Reserve feature is designed to automatically close the bridge from user access until the problem is resolved. The aim of the measure is to protect user and online security.
Raise the standard with proof of reserve
As previously mentioned, the built-in automated security introduced by the Chainlink Proof of Reserve mechanism has allowed Swingby to claim its network as the only BTC bridge secured against WBTC depegging.
Similar to blockchain transparency and security, the recent bankruptcy filing of FTX and sister company Alameda Research affected the REN protocol owned by Alameda. The rapid shutdown and demise of the REN protocol propels Swingby as one of the more recognizable market leaders in this space, and also one of the more decentralized bridges.
Swingby aims to achieve ease of use through its proof of stake network. Chainlink Proof of Reserve is designed in a way that can further support a simple and efficient UX largely by the automated process that reliable, secure, up-to-date data is presented to the smart contract driven network environment using the tested Chainlink oracle network.
How Chainlink Proof Of Reserve is expected to support Swingby Skybridge
An updated reference contract will be held to provide smart contracts with on-chain, automated verification of an asset’s security. This also removes the need for manual audits, and makes the data and information available for independent monitoring and validation by individuals, due to the transparent nature of the blockchain.
Customizable external adapters are implemented in Chainlink Proof of Reserve. They are used to source data from premium data providers through financial incentivization, meaning that the data provided through the Proof of Reserve facility is considered to be of the highest quality.
The decentralized nature of Chainlink Proof of Reserve is also mentioned as an important aspect of the design supporting the Swingby skybridge. Details provided in the announcement reveal that oracle nodes and data sources are decentralized and therefore – eliminating central points of failure in both the acquisition and delivery of data to Swingby.
More to come as announced by Swingby
Senga Yusaka, CEO of Swingby revealed in a recent statement that there may be more to expect from the partnership with Chainlink. The official Swingby announcement revealed intentions for the protocol to implement Proof of Reserve on Avalanche, Polygon and other blockchains via Skybridge now that the Ethereum network is complete and live. The CEO provided insight expressing the importance of the role that Chainlink Proof of Reserve plays in the decentralized infrastructure for Swingby’s Skybridge.
“We consider Chainlink Proof of Reserve to be mission-critical decentralized infrastructure for Swingby’s Skybridge, and it will play a key role in preventing users from minting new WBTC tokens or trading them if the BTC reserves are decoupled from the WBTC token supply. Security is critical when building a bridge across blockchains, and Chainlink’s battle-hardened and time-tested oracle network is the most trusted in the industry.”
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