Proof of Reserve methods function as security checks for financial institutions, particularly those involved in decentralized finance (DeFi) and blockchain systems. They ensure that these institutions operate honestly and have sufficient funds set aside to return to people who wish to withdraw their money or digital assets. It’s somewhat akin to confirming that a bank holds your money in your account when you want to take it out. It’s a way to maintain fairness and safety.
Orakl Network has introduced its Proof of Reserve (PoR) service that allows financial institutions to deliver information about their reserves to on-chain safely and securely. It offers a means to verify that financial institutions indeed possess enough assets to meet their obligations to customers. PoR is implemented using off-chain components that collect data about reserves and supply it to on-chain smart contracts. When reserves increase or decrease, PoR smart contracts are updated to reflect the latest state of reserves
If you are interested in utilizing Orakl Network Proof of Reserve to increase trust in your off-chain assets, please do not hesitate and contact us.
New To Orakl Network?
Orakl Network is an easy to use native token oracle that supports Verifiable Random Functions (VRF), Request-Response and Data Feed. You can learn about each of these functionalities at our documentation or dive directly to code with curated hands-on tutorials for each of our services: