Proofi by LTO Network is an identity solution that solves KYC problems for DeFi protocols.
Proofi is LTO Network's solution that allows Web3.0 projects to perform KYC/AML whilst maintaining user privacy. Powered by LTO Network and ChainLink, Proofi was announced earlier this year, and the first stage of the public unveiling of the technology and its development, Proofi Public Beta – Tech Demo, has finally arrived.
About this interview
We had the opportunity to speak with our development team about their work on Proofi to gain their insights and expertise to answer the most common questions about Proofi and the recently launched Proofi Demo.
Throughout the interview, the development team emphasized their commitment to innovation and collaboration and discussed their approach to tackling the challenges facing the world of DeFi. They also provided valuable insights into the platform's future and the development team's role in its continued growth and success.
Overall, the interview provided a valuable look into the work of the LTO Network development team on Proofi, and highlighted their dedication and expertise in building and maintaining the platform to bring it to the world limelight.
Questions and Response
Question 1: What was the main objective with this proofi demo?
You can see a lot of volatility in the crypto market, which means that trust is a huge factor. We also see a lot of talk about regulations for the crypto space, we want to make Proofi the most user-friendly option for complying with upcoming regulations. The demo allows us to get early user feedback to find out where we can improve.
Question 2: What is the next step forward after Proofi Beta/Demo?
We have been working on Proofi for quite a while now, and there have been a number of amazing developments that are all going to see the light of day shortly. The Beta is the last version before the official release, we’ll start with a proof-of-concept DeFi project to test real-world interaction with Proofi. After that, the focus will shift towards adoption.
Question 3: What platforms or projects can make use of Proofi?
Every Web3 project can use Proofi to comply with KYC regulations. Legal requirements like a minimum age or restricted countries for an ICO or public mint can be embedded directly into the smart contract.
Question 4: We claim that Proofi helps keep user data and maintain privacy, how does it do this?
The ability to help maintain privacy was at the top of the agenda for Proofi. Crypto users are quite privacy-aware and our goal was to create a technology that balanced the need for privacy with usability and functionality.
Normally, projects will request the user’s personal information to verify if the user is allowed to participate in the project; we switch this around. The project publishes the participation requirements, and Proofi will tell the project if a user meets those requirements.
Question 5: How will Proofi create more exposure for LTO Network / what benefits will it bring to LTO?
Many projects in blockchain and crypto are a solution without a problem, but KYC is a real issue in the crypto world, and we have a great solution. By providing a valuable service for DeFi projects, Proofi is able to bootstrap the LTO Network identity platform. Users automatically get an LTO DID and a wallet for verifiable credentials. When verifiable credentials become more popular, it will be more convenient for users to use their existing LTO DID and wallet than to create a new account on a different platform.
Question 6: With KYC and privacy getting more attention, what makes Proofi unique & stand out?
Currently, DeFi projects regress back to web2 solutions to meet KYC requirements. There are a number of projects in race to provide a Web3 solution. Proofi stands out because it doesn’t put any private data on-chain, nor does it require DeFi projects to store information centrally.
Question 7: How will verification work if one is away from his / her country of residence?
The country of residence of a user is the one indicated in the documents provided, but verification can be set to use different parameters. It will depend on the project specifically, if something different is needed new parameters can be implemented.
That concludes our interview!
Thank you to our development team for allowing this interview; your willingness to help share your knowledge is greatly appreciated. Keep up the great work!
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.
The importance of Proofi
Proofi allows DeFi to evolve under stricter regulations posed by world governments and other regulatory bodies. It 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.
About LTO Network
LTO Network is Europe's most advanced blockchain project. It is fully decentralized and highly efficient. Currently it is used worldwide by businesses, governments and institutions like the UN, Dutch government and more.
The network has several technologies that can be used to provide solutions for decentralized data security, digital identities, privacy and the ownership of digital assets and digital collectibles.