Amsterdam, June 1, 2022 — Proofi by LTO Network is making its identity data available to the multichain decentralized finance (DeFi) ecosystem through Chainlink, the industry-leading blockchain middleware solution.
Chainlink is integral to this process, as it will help make identity attestations on the LTO Network available to the wider blockchain ecosystem. By allowing seamless identity Know Your Customer (KYC) and Anti-Money Laundering (AML) verification for DeFi users, the project is making it easier for protocols and private companies to onboard new clients.
Ultimately, this will let DeFi projects remain compliant with government regulations without having to store user data on centralized servers.
The company is bringing its data on-chain through the Chainlink network because it’s highly secure, future-proof and is the standard for connecting data providers with smart contract developers. In Chainlink, Proofi is leveraging the largest oracle network in the blockchain industry, reaching the widest possible range of developers in the smart contract ecosystem.
Learn more here.
Identity verification and privacy requirements are a major cost and burden for startups and major corporations alike. The top 500 companies worldwide have spent $7.8 billion to comply with General Data Protection Regulation and often see a 35% drop-off rate when users are required to complete time-consuming KYC and AML checks. These compliance processes can be frustrating as requirements can vary significantly based on users’ countries of residence. However, many of these regulatory requirements only emerge because companies are storing user data.
Proofi lets DeFi protocols outsource the cost and burden of capturing KYC and AML information. Instead of having to check a user’s information directly, it can verify an attestation on Proofi to determine if someone can legally participate in the project. For example, Proofi will allow a project to check a user’s age and country of residence without having to collect, view or store that data. While the attestation will be stored on the LTO Network, by integrating with the Chainlink Network, these attestations will become widely available across the blockchain ecosystem.
After considering a variety of middleware solutions, Proofi decided to use Chainlink because it is the most time-tested and widely adopted decentralized oracle network in the blockchain space. The Chainlink network offers the best-in-class oracle infrastructure, with features such as:
- Credential management — Chainlink nodes can securely manage API keys and account logins, leading to a seamless integration with Chainlink nodes purchasing Proofi API subscriptions in the same manner traditional users do today.
- Blockchain-agnostic — Chainlink is blockchain-agnostic, meaning its data is available on any current or future blockchain environment.
- Widely adopted — Chainlink is the most widely used oracle network in the blockchain industry, offering access to a vast addressable market of potential data consumers.
- Provably secure — Chainlink is thoroughly audited open-source software designed according to leading academic research and has a proven history of helping secure tens of billions of dollars in value.
“Becoming a data provider on the Chainlink network is critical for Proofi as it helps make its identity solution accessible to the wider DeFi ecosystem in a highly secure, decentralized and efficient manner,” said Arnold Daniels, chief architect of LTO Network and co-founder of Proofi.
Chainlink is the industry standard for building, accessing and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars in DeFi, insurance, gaming and other major industries, offering global enterprises and leading data providers a universal gateway to all blockchains.
About Proofi by LTO Network
Proofi by LTO Network is a new service built by the team behind the award-winning Dutch blockchain LTO Network and fellow Dutch legal team, Firm24.
Using LTO Network’s experience with world-leading enterprises such as the United Nations, IBM and Dutch government, along with its proven capabilities in complex regulatory and privacy-aware blockchain applications, it aims to become an industry-leading cross-chain solution to solve KYC problems and allow DeFi projects to operate in an increasingly regulation-heavy world.
Learn more about Proofi by LTO Network at proofi.com.
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