Picipo Will Integrate Chainlink VRF to Power Its Unified NFT Management Platform With a Secure and Truly Unbiased Source of On-chain Randomness
We’re excited to announce that Picipo — a unified NFT management platform — will integrate Chainlink Verifiable Random Function (VRF) on the Polygon Network. By integrating Chainlink’s industry-leading decentralised oracle network, we will obtain access to a tamper-proof and auditable source of randomness needed to get an NFT from the pool after fractionalization. Ultimately this creates a more exciting, transparent, and fraud-proof user experience, as users can get NFTs on favorable terms and in a fun way.
On Picipo a fractalization process will create liquidity for the secondary market and fair pricing of NFT collections.
Here is how the process works:
- The user sends his NFT collection to the whitelist for fractionalization while they undertake to put liquidity in USDT-ETH on decentralized exchanges.
- The DAO decides to add to the whitelist by voting.
- If successful, the user can create a pool from the locked NFT collection and mint 1000 ERC-20 tokens derived from the NFT pool — we refer to them as dERC-20/ERC-20 derivatives.
- After minting dERC-20 and distributing it to the NFT pool, the user cannot add ERC-721. We deliberately close the pool by adding new NFTs to protect the index from liquidity erosion and so that market makers can take this into account in their strategy in the future.
- In this case, the user can redeem a random NFT from the pool — each NFT is equal to 1/N dERC-20, where N is the number of NFTs in the pool.
In order to add excitement to the game in a fair manner, we need access to a secure random number generator (RNG) that any user could independently audit. However, RNG solutions for smart contracts require several security considerations to prevent manipulation and ensure system integrity. For instance, RNG solutions using on-chain data like block hashes can be exploited by blockchain miners, while off-chain RNG solutions like traditional data providers are opaque and don’t provide users with definitive proof about the integrity of the process.
After reviewing various solutions, we selected Chainlink VRF because it’s based on cutting-edge academic research, supported by Chainlink’s time-tested oracle infrastructure, and secured through the generation and on-chain verification of cryptographic proofs that guarantee the integrity of each random number supplied to smart contracts.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The Picipo smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This provides our users with automated and verifiable assurances directly on-chain that an NFT is provably fairly chosen and cannot be tampered by the oracle, outside entities, or the Picipo team.
The Picipo team plans to integrate Chainlink technology into more products in the future and looks forward to more integrations. Our goal is to make fair and transparent products for our users built on trusted networks and according to best practices. Future applications include using decentralized oracle networks to secure price feeds for NFT collateralized loans and create dynamic NFTs.
About Chainlink
Chainlink is the industry standard oracle network for powering hybrid smart contracts. Chainlink Decentralized Oracle Networks provide developers with the largest collection of high-quality data sources and secure off-chain computations to expand the capabilities of smart contracts on any blockchain. Managed by a global, decentralized community, Chainlink currently secures billions of dollars in value for smart contracts across decentralized finance (DeFi), insurance, gaming, and other major industries.
Chainlink is trusted by hundreds of organizations, from global enterprises to projects at the forefront of the blockchain economy, to deliver definitive truth via secure, reliable oracle networks. To learn more about Chainlink, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter. To understand the full vision of the Chainlink Network, read the Chainlink 2.0 whitepaper.
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About Picipo
Picipo is a unified NFT management platform and marketplace built on commit-chain by Polygon. Using the Picipo platform, users can go all the way through NFT creation by choosing the preferred monetization model. The platform goes beyond the online market and crypto society, solving the native problems of the fiat market. Thus, Picipo is a place where it becomes easy for everyone, even people unfamiliar with blockchain technology, to create, buy, sell and leverage NFTs in its user-friendly interface uniting various NFT + DeFi tools and mechanics.
