For those of you who missed our latest Community Hub AMA — here's a recap!
✅ Proofi is our new identity solution that can support dApps across multiple chains to solve KYC problems for DeFi protocols.
✅ This AMA is focused on how Proofi will solve the issues surrounding KYC and regulation for the DeFi economy.
- Arnold Daniels (Lead Architect, LTO Network)
- Andre (Developer, LTO Network)
- Shawn Naderi (Chief Marketing Officer, LTO Network)
Q: How is LTO involved with Proofi?
DIDs (Decentralized Identifiers) are created on LTO Network and Verifiable Credentials are registered on LTO. Also, the proof of each verification is anchored to LTO. - Arnold Daniels
Q: What is your vision for Proofi?
Web3 has the promise to decentralize everything, but KYC regulations prevent that. It requires DeFi project to run a centralized service for identification and managing personal information. Proofi is the solution for that, making it possible to run your DeFi project fully as a DApp. - Arnold Daniels
Q: How does LTO Network want to see Proofi play out practically and ideally in terms of: Adoption, KYC, Integration, and Usage?
Since the project is there now, we are going to look for adoptions, there are many uses cases, for instance any exchange could use Proofi for KYC, Verifiable Credentials also will play a big role in the future, and most importantly defi projects won’t need to know your personal information to know if you can participate or not. - Andre
There are two roads towards adoption: (1) The adoption of Proofi as a service. (2) Other projects using a white labeled version of Proofi. In both scenarios; the more we see in terms of regulation requirements, the better the opportunities for Proofi. - Arnold Daniels
Q: Are there already projects and businesses that plan on implementing Proofi? What are your plans to assure further adoption?
It’s safe to say that we have a few contacts. - Andre
Q: Who is going to use the KYC in the future with mass adoption?
It’s becoming more and more relevant nowadays with more strict regulations being implemented all around the world. - Andre
Q: The Chainlink partnership on the project seems like a big deal. Can you explain how the project is benefiting by having Chainlink onboard?
Chainlink Any API enables DeFi project to use Proofi directly from their smart contract, eliminating the need of a back-end service. From a strategic view; Chainlink has a huge developer community and connections to many other projects, which benefits Proofi. - Arnold Daniels
Q: It's been three days since Proofi launched. How has the news been received? Is there a lot of interest by third parties?
There’s definitely quite some interest, also because Proofi offers multiple solutions, for example some company needs KYC, other DID, other are just interested in VCs (Verifiable Credentials), and Proofi connect all this together. - Andre
Q: How are the payment of the DID tx (Tx Hash/Transaction Hash) for Proofi going to look like? Companies need to own LTO and clients can pay in some in-house system? Or what is the plan for paying the tx?
The service is paid in fiat and Proofi pays the tx fee in LTO.
In case of a white labeled version, the operator of that service will pay the tx fees in LTO... - Arnold Daniels
Q: Will Chainlink assist in pushing Proofi out there?
We have planned to get LTO involved with Chainlink hackathons along with in-person discussions with developers and other types of developer-related activities that Chainlink are involved with. - Shawn Naderi
Q: Was Proofi the only project working together with Chainlink? Or is there more?
We are working towards a bigger vision with them also, but details will be announced down the line or next year. - Shawn Naderi
Q: Does Proofi relate to, or combine with NFT2.0? KYC for the LTO Wallet?
Apart from the DID connecting the owner of an NFT to its VC, I don’t see any more links. - Andre
DIDs and VC (Verifiable Credentials) will be available in smart contracts on the private layer. A project can issue a VC as an achievement, which can be read or used by an Ownable. It will be interesting to find out how VCs and Ownables will be combined in other ways. - Arnold Daniels
Q: How does Proofi keeps our KYC details secure?
When Proofi is queried through Chainlink to know, for example - if a user that wants to participate is older then 18 years old, it will return a simple "Yes" or "No", avoiding any privacy issues. - Andre
The KYC details are kept private and are never shared. As a project, you only ever get a yes or no answer. We're using the same principles we've used with LegalThings in terms of keeping the information secure. - Arnold Daniels
Q: Is your client, Les Ambassadeurs Casino, a future Proofi client?
They are using a lot of the core tech that Proofi is built on but it's a fundamentally different project at the moment. Proofi is more suited to DeFi projects. - Shawn Naderi
Q: Do you guys think that Exchanges that are already using their centralized servers for KYC, could/will switch to Proofi?
I think that it would lift a huge weight off their shoulders, especially in terms of data security. Also being verified once would be enough so you wouldn’t need to go through the KYC procedure again moving to another exchange, that would facilitate the user and increase traffic to the exchange. - Andre
This is what I hope! - Shawn Naderi
ELI5: The importance of Proofi
Proofi allows DeFi to evolve under stricter regulations posed by world governments and other regulatory bodies. Proofi opens up new ways forward for exchanges, launchpads, and marketplaces to ensure they are dealing with real people and allows these structures to accept users within certain requirements (such as nationality and age) without the need for the user to send their private information to every platform they want access to.
That concludes our Proofi AMA! 🎉
Thank you again to our wonderful Dev Team representatives, Arnold Daniels and Andre, for joining us & providing their valuable insights for Proofi.
Lastly, a special thank-you to our wonderful LTO Network community member, Adeyemi Gbenga, for his contributions to this AMA Recap!
About Proofi by LTO Network
Proofi by LTO Network is a new service built by the team that is behind award winning Dutch blockchain LTO Network and fellow Dutch legal team, Firm 24.
Using LTO Network’s experience with world leading enterprises such as United Nations, IBM and Dutch Government along with their proven capabilities in complex regulatory and privacy-aware blockchain applications, it aims to become an industry leading cross-chain layer-1 solution to solve KYC problems and allow DeFi projects to operate in an increasingly regulatory heavy world.