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Chainlink introduces CCIP Private Transactions

Wednesday 23 October 2024 08:02 CET | News

Chainlink has unveiled a new privacy-focused feature named CCIP Private Transactions, which leverages the Chainlink Blockchain Privacy Manager.

 

This new capability allows financial institutions to ensure data confidentiality, data integrity, and regulatory compliance when conducting transactions across blockchain networks. Australia and New Zealand Banking Group (ANZ) will be one of the first institutions to trial the technology for cross-chain settlement of tokenized real-world assets (RWAs) as part of the Monetary Authority of Singapore’s (MAS) Project Guardian initiative. 

According to the official press release, historically, the lack of secure cross-chain privacy solutions has prevented financial institutions from fully engaging with blockchain systems in a way that meets stringent regulatory standards, including GDPR and MiFID II. These regulations often demand full end-to-end privacy for transactions between private blockchains, while also limiting data exposure when interacting with public blockchains. Chainlink has developed CCIP Private Transactions, which is powered by its Blockchain Privacy Manager, to address these issues. 

The Blockchain Privacy Manager enables institutions to securely connect private chains to both public and private blockchains using the public Chainlink CCIP network. It also facilitates the integration of traditional finance (TradFi) systems and enterprise infrastructure with private blockchains via the Chainlink Platform. Importantly, this process allows institutions to control which onchain information is disclosed, providing a solution to a significant privacy challenge within the blockchain sector. 

The privacy feature incorporates an encryption and decryption protocol that supports cross-chain transactions while keeping transaction details, including data, token amounts, and counterparties, confidential. This capability allows institutional users to define privacy parameters, ensuring that sensitive transaction data is kept hidden from unauthorized third parties, while still permitting access to compliance authorities when required.

 

Chainlink has unveiled a new privacy-focused feature named CCIP Private Transactions, which leverages the Chainlink Blockchain Privacy Manager.

 

A word from company officials

In the company press release, representatives from Chainlink’s explained that institutional privacy has been a major barrier to blockchain adoption. They noted that the lack of adequate privacy solutions has restricted institutional growth within the sector, but with the introduction of private cross-chain transactions, the industry could see broader adoption. 

Officials from ANZ highlighted the potential impact of Chainlink’s privacy capabilities, stating that they could improve institutional blockchain use by ensuring privacy between blockchain networks. They also also expressed enthusiasm for the pilot project and its potential to resolve long-standing privacy concerns. 

Previously, ANZ and Chainlink had demonstrated the cross-chain settlement of tokenized assets, showcasing how financial institutions can use Chainlink’s CCIP to enable trading and settlement of tokenized assets across public blockchains.


Source: Link


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Keywords: cryptocurrency, blockchain, data privacy, data protection
Categories: DeFi & Crypto & Web3
Companies: Chainlink
Countries: World
This article is part of category

DeFi & Crypto & Web3






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