Transparency at the core of what the blockchain industry is all about, says Chainlink’s CEO

• Users of blockchain technology have a strong expectation of transparency, says Nazarov.

• Some entities are out of savings because of their exposure to companies that lacked transparency.

• Integrating Proof of Reserve will eliminate some of the risks associated with cryptocurrency projects.

Transparency is important in the blockchain space

Sergey Nazarov, founder and CEO of the Chainlink project, told CNBC in a recent interview that he believes transparency is essential in the blockchain and cryptocurrency space.

.@SergeyNazarov of @chainlink says that transparency is at the heart of what the blockchain industry is all about. pic.twitter.com/n2xZEeffLI

— CNBC International (@CNBCi) 30 November 2022

According to Nazarov, transparency is at the heart of what blockchain technology is all about. He said;

“I think transparency is at the heart of what the blockchain industry is all about. I think users of blockchain technology already have a strong expectation of transparency. I also think that some entities are beyond saving because they have already been exposed to risks that having more transparency could have solved. However, having the transparency that comes with Proof of Reserve will help remove the additional risk for other entities. This is why you see so many exchanges and DeFi protocols implementing different levels of Proof of Reserve.”

He added that Proof of Reserve is a very simple and clear solution that fundamentally solves the problem.

Chain link offers a number of solutions in the blockchain area via its network of decentralized nodes called oracles. The Chainlink oracles provide accurate data, and the network incentivizes them via a reward system using the LINK token.

Exchanges and DeFi protocols integrate Proof of Reserve

When asked how companies respond to opening the balance sheet of Chainlink to ensure transparency, Nazarov said;

“I think those who don’t have a lot to hide are open to doing that. I think, just like in the global financial system, anywhere there’s a financial market, sometimes people overextend themselves and take too much risk. In general seen, I have seen a strong willingness from top entities and exchanges to share important information with us, I think it is because they are aware of these risks and many of them are trying to get to a place where Proof of Reserve will prove their soundness .”

Chainlink remains one of the leading cryptocurrencies in the world. At press time will the price of Chainlink stands at $7.52, up less than 1% in the last 24 hours.