LINK Oracles Will Bolster AML Measures For Coinfirm’s Solutions

LINK oracles will bolster AML measures for the Coinfirm’s DeFi solutions according to a new press release that we have in our latest Chainlink crypto news.

The Coinfirm company will use Chainlink’s oracle network in order to bring AMLT Oracle, which is an AML solution for DeFi to the expanding smart contract and the DeFi economy. This will make Coinfirm’s AML data available on-chain and will enable applications for users but will also add compliance as an optional plug and play feature when using the applications, as per the press release.

Chainlink has seen some incredible demand for its oracles this year which coincided with the growth of the DeFi market. For the unintended, the oracles are a third-party service that fetches data from “outside” the blockchain to within as the latter can store data but not automatically verify the accuracy of the data.

Coinfirm’s @AMLT_Token Oracle is integrating with @chainlink to provide its AML solution for #DeFi across blockchains https://t.co/REDT26ckhU pic.twitter.com/HyLy2B5bbB

— Coinfirm (@Coinfirm_io) October 28, 2020

The LINK oracles will bolster the AML measures for Coinfirm and will make compliance data and services and available to Dapps in a highly available and tamperproof manner. also, Chainlink’s blockchain framework provides a method of sharing the data across any blockchain environment giving rise to on-demand compliance across the ecosystems. The AML solutions consist of a risk score of 270+ compliance indicator checks as well as high-risk transaction pattern warnings, blacklisted addresses, and even more with the widest coverage on the market. As Jakub Fijolek who is the co-founder of Coinfirm said:

 “Coinfirm has been providing innovative solutions that enable more transparency and compliance for the unique needs of the crypto economy.The next stage involves using Chainlink’s secure and reliable oracle network to make our AML solution available throughout DeFi, enhancing the ability for traditional financial players to adopt DeFi technologies.”

The solutions allow developers to adopt a plug and play approach instead of being forced to remake the existing smart contracts. An existing DeFi Dapp adding in a small feature where a user can pay a compliance oracle to rely the data on whether or not the address has been blacklisted before sending the funds:

 “It’s not hard to envision a scenario where a DEX or decentralized lending dApp uses a Chainlink oracle to bring an AML risk report on-chain to decide if an address is blacklisted before executing a transaction.”

In the meantime, the decentralization purist wonder why should bring institutional AML and compliance is needed in the Defi space anyway? For Coinfirm, the growth of the DeFi market increases the need to address compliance as now there are limited options for meeting AML regulations on-chain because compliance is not built into smart contract protocols.