Dutch blockchain LTO Network, today announced that Proofi by LTO Network will make its identity data available to the multi-chain DeFi ecosystem via Chainlink, the leading blockchain oracle 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 enabling seamless identity KYC/AML verification for DeFi users, Proofi aims to make it easier for protocols and private companies to onboard new clients.
Ultimately this will enable DeFi projects to remain compliant with government regulations without having to store user data on their centralized servers.
LTO has selected to bring its data on-chain through the Chainlink Network because its 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, which enables Proofi to reach the widest possible range of developers in the smart contract ecosystem.
Identity verification and privacy requirements are a significant cost and burden for startups and corporations alike. The top 500 companies worldwide have spent $7.8 billion to comply with GDPR and often see a 35% drop-off rate when users are required to complete time-consuming KYC/AML checks.
These compliance processes can be especially frustrating as requirements can vary significantly based on users’ country of residence. However, many of these regulatory requirements only emerge because companies are storing user data.
Proofi effectively enables DeFi protocols to outsource the cost and burden of capturing KYC/AML information. Instead of having to check a user’s information directly, they will be able to verify an attestation on Proofi to see whether a person is legally permitted to participate in the project.
For example, Proofi will allow a project to check a user’s age and country of residence without ever having to collect, view, or store that data. While the attestation will be stored on the LTO Network, by integrating with Chainlink, these attestations will become available across the blockchain ecosystem.
The Chainlink Network offers oracle infrastructure, with features such as:
- Credential Management — nodes can securely manage API keys and account logins, leading to seamless integration, with Chainlink nodes able to purchase Proofi API subscriptions in the same manner that traditional users do today.
- Blockchain Agnostic — being blockchain agnostic, means data can be made available on any current or future blockchain environment.
- Widely Adopted — Chainlink is the most widely used oracle network in the blockchain industry, offering us access to a vast addressable market of potential data consumers.
- Provably Secure — the platform 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 live in production.
“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.”
– Arnold Daniels, Chief Architect of LTO Network & Co-Founder of Proofi