Chainlink launches private blockchain transactions for institutions
Chainlink, an Ethereum-based decentralized blockchain oracle network, has launched a new technology to help financial institutions protect data privacy in their transactions on blockchain networks.
On October 22, Chainlink introduced two new privacy protection capabilities targeting financial institutions that want to use blockchain applications while ensuring complete end-to-end privacy.
Newly launched privacy features include Blockchain Privacy Manager, which allows private chains to integrate with the public ChainLink platform, and an encryption protocol called CCIP for private transactions.
ANZ Bank to initiate the technique for RWAs
Australia and New Zealand Banking Group (ANZ Bank) will be one of the first institutions to use ChainLink's privacy protection capabilities.
ANZ Bank integrates cross-chain settlement technology with real-world assets through Project Guardian, the monetary authority's Singapore currency initiative.
Source: Chainlink
Using Chainlink's new Blockchain Privacy Manager, institutions such as ANZ Bank can connect private blockchains to other public and private blockchains via the public Chainlink CCIP network. The technology enables the integration of traditional financial and enterprise systems with private blockchains through the Chainlink platform, the announcement said.
CCIP allows private transactions to be encrypted and decrypted by institutions conducting transactions on various private blockchains, such as token amounts and associated entities.
Source: Chainlink
“Chainlink's new privacy capabilities allow institutional users to anonymize on-chain data from all third parties and adversaries, and allow authorized parties in the transaction or the compliance industry to view the same data,” Chainlink said.
Why do institutions need private blockchain transactions?
According to Chainlink, the lack of secure cross-chain confidentiality is preventing financial institutions from interacting across blockchains in a manner that meets data protection requirements such as the European General Data Protection Regulation (GDPR).
To meet GDPR requirements, institutions must ensure end-to-end privacy for private chain transactions and limit data exposure for private chain-to-public chain transactions.
“Privacy is a critical requirement for most institutional transactions,” said Sergey Nazarov, co-founder of ChainLink. He also said that he expects greater institutional adoption of blockchain due to the possibility of private exchanges between Chainlink chains.
“We are excited to continue our collaboration with ANZ and explore how they can execute large transactions across multiple chains and meet their compliance and legal requirements. […]He said.
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