AMSTERDAM, May 30, 2022 — We’re excited to announce that Proofi by LTO Network is making its identity data available to the multi-chain 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 enabling seamless identity KYC/AML verification for DeFi users, we’re making 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.
We’ve chosen to bring our 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, enabling us to reach the widest possible range of developers in the smart contract ecosystem.
Identity verification and privacy requirements are a major cost and burden for startups and major corporations alike. The top 500 companies in the world 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 it ever 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, we 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 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 able to purchase Proofi API subscriptions in the same manner that traditional users do today.
- Blockchain Agnostic — Chainlink is blockchain agnostic, meaning our 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 — 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 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
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 across DeFi, insurance, gaming, and other major industries, and offers 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 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 solution to solve KYC problems and allow DeFi projects to operate in an increasingly regulatory heavy world.
Learn more about Proofi by LTO Network by visiting proofi.com.
LTO Network - Press & Media Relations
Chainlink - Press & Media Relations