The Chainlink collaboration announced by BitGo on October 1 heralded that there will be facilities for transactions with Wrapped Bitcoin (wBTC). Wrapped Bitcoin, which enables Bitcoin owners to use Ethereum-based applications and whose value is fixed to 1 BTC, has now gained a more transparent and auditable structure with Chainlink technology.
The amount of wBTC tokens in the Ethereum system reached over 120,000 BTC, or $ 1.3 billion. This situation started to create a huge control burden on applications. With the agreement made, Chainlink system creates a more transparent and secure environment by clearing the applied transactions from off-chain processes. In this way, the burden on the applications is removed and the processes are automated.
With the so-called Proof of Reserve agreement, every ten minutes, which is the average time between Bitcoin blocks, the wBTC balances in BitGo storage wallets will be audited to ensure that the system data is audited, and if there is a deviation from the expected threshold, an update will be released on the chain to take the new balance as reference.
Can Be Useful For Decentralized Applications
In the announcement, it was mentioned that this feature acquired with Chainlink technology can be useful and useful for all decentralized applications using wBTC. The belief that the new method will increase trust in wBTC and will act as a precaution against unexpected events in decentralized financial markets was stated.
Instead of Bitcoin, which is not suitable for working with Ethereum-based applications under normal conditions, Wrapped Bitcoin, which is issued for transactions with these applications and whose value is fixed to 1 BTC, has become extremely popular with the increase in the number of transactions.