30s Summary

Chainlink has introduced two privacy tools for banks using blockchain, the Blockchain Privacy Manager and CCIP Private Transactions. The tools were developed for organisations wanting to use blockchain while maintaining stringent privacy. They have been tested by ANZ Bank, which plans to use them for cross-chain settlement of tokenised real-world assets as part of Project Guardian, a Singapore Monetary Authority initiative. The tools allow encryption and decryption of private data during transactions across multiple private chains.

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Chainlink, a network based on Ethereum’s decentralized blockchain has rolled out new tech to help banks keep their data private when doing transactions on blockchain networks. Recently, they’ve brought out two new tools especially for banks that want to use blockchain but still want to keep super private.

The new privacy tools are called the Blockchain Privacy Manager, which basically links a private chain with Chainlink’s public platform, and another one called CCIP Private Transactions, which is an encryption protocol.

One of the first to test these new privacy tools is ANZ Bank from Australia and New Zealand. They’re planning on using the tech for cross-chain settlement of tokenized real-world assets, which is part of a tokenization project by Singapore’s Monetary Authority known as Project Guardian.

By using Chainlink’s new tech, financial institutions like ANZ Bank can link to other public and private blockchains through Chainlink’s public CCIP network. The new tech also makes it possible to connect traditional banking and business systems to private blockchains with Chainlink’s platform.

With CCIP Private Transactions, banks can encrypt and decrypt private data, such as token amounts and counterparties, while doing transactions across many private chains. This means that only authorized people can see this data, keeping it private from prying eyes.

Chainlink says that one thing preventing banks from interacting with other blockchains in a secure way is a lack of secure cross-chain privacy, which is mandatory under some data protection laws like Europe’s GDPR. Institutions need to ensure complete privacy when doing private chain-to-private chain transactions and avoid exposing data when doing private chain-to-public chain transactions.

According to Chainlink founder Sergey Nazarov, privacy is crucial for most institutional transactions. He hopes that institutions will increasingly adopt blockchains now that private transactions across chains are possible.

Source: Cointelegraph