The world’s largest cryptocurrency exchange, Binance, has teamed up with privacy-centric blockchain-powered cloud computing developers Oasis Labs to fight fraud in the crypto sector.
Oasis was announced as the inaugural member and primary infrastructure provider for the Binance-led CryptoSafe Alliance on August 27.
Oasis Labs’ “confidential smart contracts” will be utilized in building the decentralized CryptoSafe Platform which is designed to share threat intelligence data among crypto exchanges. The CryptoSafe Platform will be powered by the Oasis Network blockchain.
The firms emphasize the need for the platform to enable collaborative fraud detection while ensuring that the data of participating exchanges is kept confidential and private.
The platform will first facilitate private intelligence sharing, before moving to offer “real-time fraud analysis to fight cryptocurrency hacks, theft, and laundering.”
Binance’s CEO, Changpeng Zhao (CZ), urged crypto industry representatives to join the CryptoSafe alliance, stating:
“A collective effort and forging closer ties amongst members will better ensure the security of the global cryptocurrency community and the broader ecosystem's integrity to achieve this common mission.”
At launch, the platform will enable exchanges to share intelligence concerning transactions processed on the Bitcoin (BTC), Ethereum (ETH), Tron (TRX), and Eos (EOS) blockchains, with plans to support additional networks by the end of the year.
According to crypto forensics firm CipherTrace, cryptocurrency fraud totaled $1.36 billion during the first five months of 2020.