Passive income opportunities are one of the biggest draws in the cryptocurrency ecosystem because it gives investors an easy opportunity to grow their portfolio size regardless of the day-to-day price action.
The latest token to get a bump in its price after announcing the upcoming implementation of staking is Chainlink (
Proof of reserves
The new roadmap also introduces Chainlink Proof of Reserves (PoR).
#Chainlink Proof of Reserve (PoR) enables #DeFi projects to verify off-chain and cross-chain asset reserves through automated audits based on cryptographic truth.
Learn how PoR helps secure cross-chain assets, stablecoins, wrapped tokens, and more https://t.co/qZRj7oExsz
— Chainlink (@chainlink) June 6, 2022
With PoR, the cryptocurrency holdings of a company can be easily audited through an automated process that leverages the transparency of blockchains, smart contracts and oracles.
This real-time auditing of collateral helps to ensure that user funds are protected from “unforeseen fractional reserve practices and other fraudulent activity from off-chain custodians.” In doing so, PoR helps to bring a higher degree of transparency to the crypto ecosystem as a whole and it addresses some of the biggest complaints about how the current financial system operates.
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