Today’s centralized cloud storage ecosystem includes a number of pitfalls related to security, reliability and scalability. Decentralized blockchain-based cloud storage offers an alternative that protects against system hacks, optimizes transparency, and democratizes access to data as an essential resource.
As DeFi’s TVL continues to grow and exponentially more transactions are executed on-chain, there’s a corresponding need for long-term, cost-efficient, decentralized storage. Filecoin is an open-source, cloud-based decentralized storage network (DSN) that democratizes and safeguards cloud data storage and retrieval through specialized cryptographic proofs and its utility token, FIL.
Filecoin’s DSN and Chainlink’s decentralized oracle networks (DONs) are poised to revolutionize the preservation of important information as digital commons and accelerate Web 3.0 adoption by powering more advanced dynamic, participatory NFTs and blockchain-powered, user-owned economies.
FIL has even greater utility in the DeFi ecosystem since Gemini’s recent launch of Wrapped Filecoin (EFIL), which allows users to transact on the Ethereum network. To optimize EFIL as a secure and reliable asset, Gemini announced this week that it will sponsor a Proof of Reserve (PoR) data feed for EFIL powered by Chainlink’s industry-leading oracle network.
In an official statement, Gemini CEO Tyler Winklevoss said, “This collaboration with Chainlink will further drive trust and transparency in our Wrapped Filecoin (EFIL) product. By providing a Proof of Reserve data feed for EFIL, Chainlink’s decentralized oracle network will instill confidence in EFIL with automatic on-chain audits, helping to secure user funds and ensure the reliability of the system.”
PoR provides additional proof of EFIL’s 1-to-1 collateralization with FIL on Gemini by allowing DeFi platforms to audit EFIL collateralization directly on-chain before approving EFIL for various utilities such as loan collateralization.
Chainlink Co-founder Sergey Nazarov said, “In automating on-chain audits of wrapped assets like EFIL, Chainlink Proof of Reserve helps ensure end-to-end transparency around off-chain assets and empowers developers to preprogram smart contracts to instantly protect user funds when collateral deviates from predefined thresholds.”
PoR for wrapped assets is one of the many ways Chainlink is laying the groundwork for DeFi. Winklevoss highlighted Chainlink’s fundamental role: “As we continue to build bridges to DeFi, Chainlink offers a proven oracle infrastructure for helping us realize our vision of building a secure and transparent ecosystem.”
To learn more about EFIL, read Gemini’s technical blog post.