Chainlink taps centralized exchanges to use Proof-of-Reserve to prove solvency

CointelegraphNovember 11, 2022

The company claimed its PoR product can restore trust in crypto exchanges through greater transparency.
Chainlink Labs offered its proof-of-reserve product as a solution to future trust issues in the crypto exchange market on Nov. 10. In a tweet thread, Chainlink Labs asked, “Will crypto continue to repeat the mistakes of the traditional black-box financial industry? Or will a better system emerge?”
In answer to this question, it offered its proof-of-reserve (PoR) product, which it said is useful “for verifying centralized exchange asset reserves, off-chain bank account balances, cross-chain collateral, real-world asset reserves, and much more.”
Proof of reserve is a technique that allows users to audit the reserves of crypto exchanges in real time. As of this time of writing, only Kraken has implemented some form of proof-of-reserves and Binance CEO Changpeng Zhao has argued that all exchanges should now offer this feature.
In response, Chainlink Labs argued that its product provides an “out-of-the-box” solution that exchanges can implement immediately (video).