The Currency Analytics
By Ayobami Abiola
BitGo on October first announced that it is adopting Chainlink’s Proof of Reserve mechanism to automate the auditing of its Wrapped Bitcoin (WBTC) custodial reserve.
One of the essences of blockchain technology is hinged on transparency and the removal of censorship.
“To boost the transparency and auditability of Wrapped BTC (WBTC)... BitGo has adopted Chainlink’s Proof of Reserve mechanism.
Chainlink’s oracles are created to help connect smart contracts to off-chain data sources so they can function fairly and as designed.
This move essentially removes any form of error that may arise with a manual track, trace, and auditing of smart contracts by DeFi applications.
“For example, a money market protocol can check WBTC collateralization before taking a borrowing/lending action, which either accepts or denies a transaction based on the oracle…
Chainlink’s proof of reserve reference contracts is being utilized by many other custodial wallets to automate the process of audit.