One of a blockchain’s defining features is its transparency as a public record. However, many blockchain-based applications rely on user information that needs to remain private. Hybrid blockchains with public and private layers offer a solution by allowing DeFi applications to utilize private information while maintaining public consensus.
European hybrid blockchain platform, LTO Network, was designed to ease the burden of GDPR compliance for web3 startups. The platform’s identity data service, Proofi, allows DeFi projects to remain compliant without having to collect, view, or store user data. Instead, dapps can outsource identity verification through attestations on Proofi.
Recently, LTO Network announced that Proofi is bringing its identity data on-chain via Chainlink’s industry-leading middleware.
“Becoming a data provider on the Chainlink Network is critical for Proofi as it helps make our identity solution accessible to the wider DeFi ecosystem in a highly secure, decentralized, and efficient manner,” said LTO Network’s Chief Architect and co-founder of Proofi, Arnold Daniels.
“In the past, KYC data was centralized and users were required to reveal quite a lot of private information in order to be able to participate in projects,” LTO Network’s CMO, Shawn Naderi, told Chainlink Today. “With Proofi, it is now possible to verify whether an individual or organization is able to participate in a project without having to share any of their personal information.”
He said Chainlink plays an essential role in enabling Proofi’s high-quality data to be easily queried across multiple chains.
“Using Proofi, DeFi and CeFi projects can now perform KYC/AML without all of the administrative overheads such as proper storing and archiving of the data. This is especially useful in regions, such as Europe, that have strict privacy regulations like GDPR.”
Ultimately, Naderi believes Chainlink allows Proofi to extend the benefits of DeFi beyond the realm of blockchain-savvy crypto enthusiasts. “Without this layer, CeFi and DeFi will likely be kept apart for some time to come,” he explained. “So we set out to solve that, because DeFi has a lot to offer the traditional financial world.”
To learn more about LTO Network, visit their website, Twitter, Telegram, Reddit, YouTube, and Github.