WEB3
by Soumen Datta
October 22, 2024
The new capability utilizes Chainlink's Blockchain Privacy Manager, enabling institutions to maintain data confidentiality while meeting strict regulations.
Chainlink launched CCIP Private Transactions, an advanced privacy solution designed to address the needs of financial institutions. This new feature, powered by Chainlink's Blockchain Privacy Manager, allows institutions to maintain data confidentiality, integrity, and regulatory compliance when conducting cross-chain transactions.
Australia and New Zealand Banking Group (ANZ) is among the first to pilot this technology under Singapore’s Project Guardian initiative, which aims to advance tokenized real-world assets (RWAs).
"The lack of adequate privacy has held back institutional use of blockchain technology," Chainlink co-founder Sergey Nazarov said. "With CCIP Private Transactions, we expect to see more large-scale transactions and an increase in institutional blockchain adoption."
One of the key barriers to institutional adoption of blockchain technology has been the lack of secure privacy mechanisms for cross-chain transactions, according to Chainlink.
Institutions need full end-to-end privacy for transactions between private blockchains, as well as limited data exposure when interacting with public chains. These privacy requirements are crucial for meeting stringent regulations such as GDPR and MiFID II. Until now, blockchain ecosystems have struggled to meet these regulatory needs.
Chainlink's new CCIP Private Transactions aim to solve this problem by enabling secure, confidential transactions across multiple blockchain networks.
Using the Blockchain Privacy Manager, institutions can reportedly conduct private chain-to-private chain transfers or connect their private chains with public ones, while exposing only the minimum required information to process each transaction.
The newly introduced Blockchain Privacy Manager uses an on-chain encryption and decryption protocol. This allows institutions to carry out cross-chain transactions with full privacy, keeping transaction details—such as token amounts and counterparties—completely hidden from unauthorized parties.
Only authorized individuals or regulatory bodies can access the relevant data, ensuring both privacy and compliance.
Chainlink's Cross-Chain Interoperability Protocol (CCIP), already an industry standard for connecting blockchain networks, is at the core of this new feature. It allows financial institutions to interact between private and public blockchains without sacrificing privacy. This enables the integration of traditional financial systems with blockchain technology, allowing tokenized RWAs to be settled securely and efficiently.
ANZ, one of the first financial institutions to pilot this new feature, expressed optimism about its potential. Nigel Dobson, Banking Services Lead at ANZ, believes that the privacy capabilities introduced by Chainlink could accelerate the adoption of blockchain among institutional users.
In a statement, he noted:
"We are excited to pilot CCIP and demonstrate how these privacy concerns can be resolved, paving the way for broader institutional blockchain adoption."
This announcement comes as Chainlink continues to expand its influence within the blockchain space. Recent milestones include the integration of its Proof of Reserve feature on the Solana and Ethereum mainnets to improve transparency and security for wrapped Bitcoin tokens. Chainlink has also partnered with ZKsync and Coinbase’s Base network to enable cross-chain token transfers and enhance DeFi capabilities.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Author
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
Latest News
1h : 5m ago
Bitcoin Spot ETFs Records $2.67B in Inflows in Just One Week
2h : 50m ago
Chainlink and ANZ Collaborate on Private Transactions for Tokenized Real-World Assets
October 21, 2024
Transak Data Breach Exposes 92K Users: Employee Phishing Attack, Ransomware Group Claims Responsibility
October 21, 2024
Ripple Co-Founder Chris Larsen Donates $10 Million to Kamala Harris' Presidential Campaign Amid Divided Crypto Industry Support
October 21, 2024
Pump.fun Unveils New "Pump Advance" Trading Terminal, Teases Native Token Release
October 21, 2024
Payments Giant Stripe Acquires Stablecoin Platform Bridge in a $1.1B Deal
October 21, 2024
ApeChain Launches on Mainnet With Arbitrum Orbit
October 19, 2024
Weekly Article Recap: 10/14-10/18