Blockchain analytics firm Chainalysis today announced the launch of two new tools that facilitate cryptocurrency screening. wallet For sanctions compliance.
The tool has On-chain The API, an application programming interface that acts as a connection between currently available Oracle and computers, will be available next month.
“As countries around the world continue to leverage economic sanctions in response to Russia’s invasion of Ukraine, the decentralized Web3 group becomes: DEX, DeFi platform, DAOWhen dapp Developers are looking for lightweight tools to help developers and their customers comply with sanctions policies, “Chainalysis said in a statement.
“It’s time for the industry to demonstrate that the inherent transparency of blockchain makes cryptocurrencies a powerful deterrent to evading sanctions,” said Michael Gronger, Co-founder and CEO of Chainalysis.
According to the company, these tools will be offered free of charge to participants in the cryptocurrency market. Gronager added that Chainalysis prioritized the development of these tools, providing the crypto industry with “what they need” and allowing sanctions to be conducted “for free.”
What do these tools do?
Chain Analysis Sanctions-Screening Oracle teeth Smart contractThis is basically a bit of computer code designed to execute a series of instructions, verifying that the cryptocurrency wallet address is included in the sanctions designation. The smart contract itself is maintained and “updated regularly” by Chainalysis.
The API uses the same data as Oracle to check if the cryptographic address is on the sanctions list. However, the API is designed for public web and mobile user interfaces, as opposed to on-chain Oracle, which was designed for DeFi projects.
Focus on DeFi
According to the company, these new tools aim to provide DeFi projects and DAOs with a way to screen for potentially licensed cryptographic addresses. DeFi is a comprehensive phrase used to describe tools that enable cryptocurrency non-custodial transactions, borrowing, and lending without the intervention of third parties such as banks and central exchanges.On the other hand, DAO Decentralized autonomous organization-An online community that is incentived and controlled by a particular cryptocurrency.
Also, centralized exchanges such as Coinbase and FTX already know their customers (KYC) Checks are being made to screen sanctioned individuals, but few decentralized exchanges exist in the DeFi world, says Chainalysis.
“Many decentralized protocols and platforms that are gaining in popularity these days do not have built-in tools that enable effective management of sanctions risk,” said Chainalysis, who said these new tools are these stakeholders. He added that it would provide a means to carry out “basic sanctions checks”.
https://decrypt.co/94808/crypto-chainalysis-sanctions-screening-tools-defi-daos
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