Blockchain-data analysis firm Chainalysis has announced the fast-tracked launch of two primary ‘sanctions screening’ tools that it will provide free of charge to the cryptocurrency industry. 

According to the report provided by Chainalysis on March 10, the screening tools include two main components of new tracking software that will assist exchanges in screening wallets and transactions for activity that appears to be skirting economic sanctions. The first tool, which is immediately available, is an on-chain oracle.

An on-chain oracle is a smart contract aimed more specifically at DeFi (decentralized finance) projects. It validates whether or not a cryptocurrency wallet address has been included in a sanctions designation. This means that all wallets included on economic sanctions lists provided by the US, the EU and the UN will be automatically available to anyone running the oracle.

The second tool, which is scheduled for release next month, is an application programming interface (API). An API uses the exact same data as the on-chain oracle to validate whether a wallet is included on any sanctions list, however, it is designed for use on a much broader variety of applications, including centralized crypto exchanges and mobile user interfaces.

Speaking on the importance of transparency in cryptocurrency, co-founder and CEO of Chainalysis, Michael Gronager said in a statement,

“Now is the time for the industry to demonstrate that blockchains’ inherent transparency make cryptocurrency a powerful deterrent to sanctions evasion.”

He added that Chainalysis has…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.