Chainlink has announced two new privacy solutions to foster institutional blockchain adoption and accelerate the transition to a multi-chain economy. The Blockchain Privacy Manager and CCIP Private Transactions were unveiled during Sibos 2024, alongside an update to DECO, an existing privacy technology. These solutions focus on providing confidentiality, integrity, and regulatory compliance across public and private blockchains.
Chainlink Introduces Blockchain Privacy Manager
Blockchain Privacy Manager by Chainlink allows financial institutions to securely connect their private blockchain networks with the Chainlink public chain. It provides institutions access to crucial off-chain data like Proof of Reserve (PoR) and Net Asset Value (NAV) without exposing sensitive information. This new infrastructure enables selective control over data visibility.
Additionally, Chainlink introduced CCIP Private Transactions, a privacy-preserving protocol that encrypts cross-chain transactions between private blockchain networks. This system uses end-to-end encryption to prevent unauthorized parties, including Chainlink node operators, from accessing transaction details such as token amounts and counterparties’ addresses. Institutional users manage encryption keys shared by authorized entities such as auditors or regulators.
DECO Sandbox and Existing Capabilities
The DECO Sandbox, an extension of Chainlink’s existing privacy-preserving ZK-proof technology, is set to launch soon. This sandbox environment will offer pre-configured use cases showcasing DECO’s capabilities in privacy-preserving verification processes, such as proof of identity and funds using zero-knowledge proofs. This will enable financial institutions to verify sensitive data without exposing it, enhancing privacy across digital financial operations.
Chainlink’s new privacy solutions address financial institutions’ key regulatory and confidentiality challenges. These tools ensure institutions can securely interact across blockchain networks, supporting the growing demand for cross-chain transactions in tokenized assets and digital financial services. With the market for tokenized assets projected to surpass $16 trillion by 2030, these advances further position Chainlink as a key infrastructure provider for the multi-chain economy.
Source: https://blockchainreporter.net/chainlink-launches-new-privacy-solutions-for-institutional-blockchain-transactions/