press release
PRESS RELEASE. Swingby recently announced a newly formed partnership with Chainlink for Proof of Reserve. The recently announced partnership aims to help secure the Swingby Skybridge, which connects the Bitcoin blockchain allowing BTC to be injected 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 already fulfills. In fact, the advancement in platform security made possible by the partnership makes Swingby the only BTC bridge protected against WBTC’s depegging event.
In a Swingby announcement announcing the partnership, it was also revealed that Chainlink chose Proof of Reserve, as the announcement details that the Bitcoin bridge protocol is a critical feature offered by Chainlink’s oracle service.
Proof of Stake offers verifiable transparency and security
Blockchain ecosystem crashes, catastrophic crashes, sudden shutdowns, bankruptcies, etc. with the recent rise in cases, this is a time when transparency and security are more important than ever in the blockchain industry.
Swingby decided to equip the protocol to use Proof of Reserve as a transparency measure, which protects the bridge from completing unverifiable transfers in the token supply that backs reserves.
The Swingby announcement details that the integrated Proof of Reserve will verify that the number of BTC stored 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 block the bridge from user access until the problem is resolved. The measure aims to protect user and network security.
Raising the standard with reserve evidence
As mentioned above, the built-in automated security provided by the Chainlink Proof of Reserve mechanism has led to Swingby being able to announce the network as the only BTC bridge protected against WBTC being hacked.
In the vein of blockchain transparency and security, the recent bankruptcy filing of FTX and sister company Alameda Research affected the Alameda-owned REN Protocol. The rapid shutdown and destruction of the REN Protocol makes Swingby one of the more recognized market leaders in this space, as well as one of the more decentralized bridges.
Swingby aims to achieve ease of use through a proof of stake network. Chainlink Proof of Reserve is designed to further support a simple and efficient UX through an automated process of providing reliable, secure, up-to-date information to a smart contract powered network environment through the proven Chainlink oracle network. .
How Chainlink Proof of Reserve is expected to support Swingby Skybridge
A modern reference contract will be maintained to enable smart contracts with on-chain, automated verification of asset collateral. It also eliminates the need for manual verifications and, due to the transparent nature of the blockchain, makes data and information available for independent monitoring and verification by individuals.
Customizable External Adapters are implemented in Chainlink Proof of Reserve. They are used to obtain data from premium data providers through financial incentives, meaning that the data provided through Proof of Reserve facilitation is considered to be of the highest quality.
The decentralized nature of Chainlink Proof of Reserve is also cited as an important aspect of the design that underpins the Swingby skybridge. The announcement details that oracle nodes and data sources are decentralized and therefore eliminate central failures in both data retrieval and delivery to Swingby.
More to come as announced by Swingby
In a recent statement, Swingby CEO Senga Yusaka revealed that more can be expected from the partnership with Chainlink. The official Swingby announcement announced their intentions to implement Proof of Reserve on Avalanche, Polygon and other blockchains via Skybridge as the protocol’s Ethereum network is complete and live. The CEO provided insight into the pivotal role Chainlink Proof of Reserve plays in decentralized infrastructure for Swingby’s Skybridge.
“We consider Chainlink Proof of Reserve to be a mission-critical decentralized infrastructure for Swingby’s Skybridge, which will play a key role in preventing users from minting new WBTC tokens or altering them if BTC reserves are separated from the WBTC token supply. Security is paramount when bridging blockchains, and Chainlink’s battle-hardened and time-tested oracle network is the most secure in the industry.”
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