Threshold Network is excited to announce the planned integration of Chainlink Proof of Reserve with the tBTC v2 bridge on Ethereum mainnet to help securely monitor BTC deposits. With this integration of the industry-leading decentralized network, Chainlink nodes will be able to read the amount of Bitcoin custodied in the tBTC reserves wallets to help inform dApp users. This automated verification will help enable tBTC holders and DeFi apps accepting tBTC as collateral to verify that every tBTC minted is fully backed by BTC at a rate of 1:1.
tBTC is an upcoming secure, decentralized, and permissionless bridge between Bitcoin and Ethereum. Each tBTC token will be fully backed 1:1 by BTC represented as an ERC-20 token on Ethereum. With users able to safely deposit BTC for tBTC, they will be able to effectively use their BTC in the thriving DeFi ecosystem on Ethereum.
Threshold Network is the result of the first-ever on-chain merger of two legacy networks: Keep and NuCypher merged to combine the best cryptographic talent and largest privacy-focused communities focused on a single mission to support user sovereignty on the public blockchain. With this integration of Chainlink Proof of Reserve, which is itself a decentralized infrastructure run by reliable node operators, tBTC users can feel confident in having a transparent, highly available, tamper-resistant, source of information regarding the veracity of BTC deposits backing tBTC. The end result is tBTC becoming a more reliable form of capital throughout DeFi and other smart contract verticals on Ethereum needing storage solutions.
Threshold is choosing to integrate Chainlink Proof of Reserve because it offers the following critical features:
- Automated On-Chain Verification — By keeping an up-to-date reference contract, smart contracts can get automated, on-chain verification of an asset’s collateralization, removing the need to conduct manual audits.
- High-Quality Data — Through the use of customizable External Adapters, Chainlink can source data from premium data providers who are financially incentivized to provide highly accurate and available data.
- Decentralized — PoR Feeds can be decentralized at the data source and oracle node level, eliminating central points of failure in the sourcing and delivery of external data to Threshold Network.
- Transparent — PoR Feeds can be monitored by anyone in real-time, allowing any user to independently verify asset collateralization.
“There’s a large amount of BTC sitting on the sidelines waiting for an opportunity to safely and securely access the DeFi ecosystem. Creating a secure, decentralized bridge for bitcoin holders is an important step forward for the blockchain economy, and it’s essential that that bridge is as transparent as possible. This makes Chainlink PoR an important part of that infrastructure, as users and holders can independently verify that every tBTC token remains fully backed by BTC.” — Doug von Kohorn, tBTC Project Lead.
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.