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The influx of change has been seen as Decentralized Finance (DeFi) and Financial Institutions (TradFi), look for reliable on-chain data to support their protocols. Hence, this is done by adding Chainlink’s most popular off-chain data platform with BitSafe as their own provider of CBTC via the Canton Network. This will add the Proof-of–reserve (PoR) technology of Chainlink, which will help improve BitSafe’s ability to provide effective solutions for lending, borrowing and exchange with its customers.
Strengthening CBTC Ecosystem with Chainlink Infrastructure
BitSafe seeks to improve transparency and reliability for institutional partners and end users by building CBTC (Canton Bitcoin) with Chainlink‘s Proof of Reserve function. Users, as well as institutions that use CBTC (CB)-based organizations and other entities are provided with real-time evidence of the collateral supporting the CBCTC token.
This raises the level of trust and provides security for CBTC by institutional customers, helping to facilitate institutional adoption of CBCTC, avoiding the risk of instituting a fractional reserve system (and not using an opaque system of collateralization for BTBTC against the underlying asset).
Moreover, the use of data streams with Chainlink ensures that BitSafe’s decentralized apps (dApps) will receive high-frequency and low-latency price information. This is essential for maintaining the health of lending and borrowing markets; correct liquidations and value of collateral depend on millisecond precision.
Expanding DeFi Capabilities on the Canton Network
This latest BitSafe addition is a clear example of how to extend the DeFi capabilities of the Canton Network, as it has become the leading private blockchain for institutional assets; this newer version of The Capton Network provides an explicit demonstration of what can be done with its DeF capability. BitSafe does not just add new features to the network as they integrate these data standards with their integration of them. But they are building infrastructure on top of this technology for the next generation of complex financial products.
This is going to enable a complex transactional process between on-chain and off- chain trading, using its full capabilities for seamless swaps as well as automated yield strategies. In addition, it will also include the full security of the world’s most widely used oracle network.
It comes as part of a growing trend towards integration of “real-world assets” (based on ‘transparency’ currency model, which is based upon transparency). A recent Chainlink report cited in their official documentation says that verification of off-chain assets will be the standard for any serious financial platform in Web3.
Institutional Trust and the Future of On-Chain Finance
This is a mature example of space maturity, as it shows that Chainlink’s partnership with BitSafe. The Canton Network needed to add Chainlink as a data source for the ecosystem, which was the top data supplier of that industry.
As they look for reliable data sources within the system with a high assurance level, this integration will be increasing institutional users and adding liquidity. Additionally, BitSafe appears to be using “best-in-class” infrastructure – meaning they are focused on a long-term vision of making ‘an efficient product rather thanchasing speculative growth’.
Conclusion
BitSafe’s recent deployment of Chainlink’s Cross Block Trade Chain (CBTC) on the Canton Network is a major milestone in their efforts to meet few of today’S DeFi needs transparency, reliability, speed and security. BitSafe has become a leader in institutional-grade DeFi, as it integrates Proof of Reserve and high throughput Data Streams to form the basis for its integration with High Throughput. Towards the convergence of these different ecosystems, the foundation for a truly open, transparent and efficient global economy begins to emerge.
Thanks for reading BitSafe Integrates Chainlink Data Standards for CBTC – A New Era for Canton Network DeFi
