Cryptoraves Eliminates Centralized Custody and Reduces Regulatory Risk Through Integration with Chainlink
15 May 2020 — Cryptoraves, a zero-barrier, zero-risk, zero-fee portal into the crypto experience (and the most decentralized crypto bot on Twitter), announced today an integration with Chainlink — the market-leading decentralized oracle network. This integration will enable Cryptoraves to remove a layer of centralization from its platform by employing Chainlink’s secure and reliable oracles to validate Twitter data. Importantly, this step solves the vexing regulatory issue of custody. By offloading transaction data validation to Chainlink’s decentralized network, Cryptoraves drastically reduces its regulatory risk. This also enables Cryptoraves to add higher risk exchange-listed tokens such as ETH, DAI, or even LINK to their Twitter tipping platform.
All Cryptoraves token transfers happen when users live-Tweet their tokens to others. Currently, Twitter data must be pulled into a centralized location prior to blockchain processing. But soon, with the activation of Chainlink oracles as validators, custody of users’ tokens will stay on-chain throughout the entire process. This means that Cryptoraves will no longer have custody of their users’ tokens. Without a way to control users’ assets at any point in the process, Cryptoraves will no longer fit the SEC’s definition of a custodian. This greatly reduces Cryptoraves’s regulatory risk, as well as eliminates being subject to SEC oversight (which is highly cost-prohibitive).
This integration may serve as a model for other dApps looking to avoid custody issues. Chainlink-provided oracle validation is a great way to ensure tokens remain accessible only through smart contracts and end-user wallets.
As Cryptoraves continues to add more social media sites to their platform, Chainlink can scale to support additional oracle validation. This represents an important evolution for crypto — a further step toward fully decentralizing big social media data. Token transfers will be possible across traditional and established social media platforms, which could have far-reaching impacts for crypto mass adoption.
After looking at the various oracle solutions on the market, Cryptoraves selected Chainlink as the most reliable and developer-friendly oracle platform. Their track record and reputation across all areas in the ecosystem stand out, including strong security guarantees, process transparency, technical expertise, node operator quality, and, importantly, performance. Chainlink also offers several features that may be applicable to future designs, such as Arbitrum for layer 2 scaling.
“We can’t wait to integrate Chainlink with Cryptoraves to achieve 100% decentralization on our platform,” said Bryan Plasters, Founder & Creator of Cryptoraves. “We think established social media is an important gateway towards reaching & educating the general public on crypto concepts, as well as demonstrating the value that crypto provides via familiar platforms. Together with Chainlink, we can reduce our reliance on centralized control and validation of crypto transactions made while interacting with large social media sites. Thus control and ownership will be where it truly belongs — in the user’s hands.”
If you’re a developer and want to connect your smart contract to existing data and infrastructure outside the underlying blockchain, reach out to us here! We can help you quickly and securely launch your data-enabled application or Chainlink Price Reference Data Contract on mainnet today. You can also visit the developer documentation or join the technical discussion on Discord. Learn more by visiting the Chainlink website or follow us on Twitter or Reddit.
Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. It is well known for providing highly secure and reliable oracles to large enterprises (Google, Oracle, and SWIFT) and leading smart contract development teams such as Polkadot/Substrate, Synthetix, Loopring, Aave, OpenLaw, Conflux, and many others.
Cryptoraves is a zero-barrier, zero-risk, zero-fee portal into the crypto experience. Cryptraraves believes in making crypto freely accessible to every Twitter user, and providing a hands-on crypto education. Our users can launch and send personalized tokens using only Tweets. This allows anyone with the internet and a Twitter account to learn crypto concepts, gain knowledge of token economy fundamentals, and become empowered with token distribution principles. And have fun watching your token rise on the Leaderboard. Launch your own token by Tweeting: @cryptoraves #DropMyCrypto
Click here for a demo of the Cryptoraves system.
Note: chainlinkecosystem.com does not claim any ownership of this content, all credit to Cryptoraves, view official announcement.