Compliance focussed Blockchain Concordium is now Live
Concordium, a public, layer-1, proof-of-stake blockchain with a unique ID layer at the protocol level to assist with regulatory compliance last valued at $4.45 billion in its previous private sale, is now live. Concordium has created a unique smart-contract ecosystem with a fungible and non-fungible token standard that has been scientifically validated. Concordium stands out by providing near-instantaneous, real-time finality with cheap transaction costs and being stable in FIAT terms and represented in CCD, the company’s native token. Bitfinex will be the first exchange to list the token, followed by BitGlobal. Bitfinex is one of the world’s oldest crypto trading platforms. It offers a suite of highly advanced and diversified trading features, charting tools, and unparalleled support. BitGlobal is designed to enable every user to trade, participate, or contribute to the digital assets ecosystem with ease.
Hackernoon, in an exclusive interview with Beni Issembert, CMO at Concordium, had discussed the importance of a compliance framework with on-chain identity. The blockchain’s innovative identification layer strikes a harmony between anonymity and disclosure focused on enforcement. On-chain, a user’s identity is private. However, it may be removed, and their real-world identity exposed in response to a legitimate request by a government body made through existing legal channels. Anonymity concerning the general population is maintained from the user’s viewpoint, and blockchain’s identification layer can serve identity suppliers and anonymity revokers based in various jurisdictions around the globe. As a result, the blockchain provides a multinational, multijurisdictional solution for blockchain adoption through regulatory regimes.
The blockchain uses a dual consensus mechanism is used for transaction settlement. A Byzantine Fault Tolerant agreement between qualified nodes forms the finalization layer. With an oracle that feeds in the CCD/€ pricing, network costs should be steady (in Fiat terms) and predictable. Network participants in diverse ecosystems can use the blockchain as a distributed execution platform to migrate their business dealings away from inefficient, traditional platforms and automate their interactions without the need for intermediaries. By digitizing assets and transacting securely on the distributed ledger via programmable settlements, these ecosystems become more transparent, and markets become more efficient.
Understanding the Need for Compliance in the Crypto Industry
In the DeFi industry, compliance implies that participants follow the same standards as conventional financial services. The regulations governing capital markets and the overall financial industry vary by state and government, but they are divided into three categories: Know Your Customer (KYC), Anti Money Laundering (AML), and Countering Terrorism Financing (CFT) (CFT).
DeFi’s main selling point is its connection to blockchain technology, which promotes decentralization. As a result, DeFi activities are also permissionless, in contrast to the existing system, which needs prospective users to pass through a slew of regulatory verification procedures before engaging in the global economy.
Since DeFi initiatives enable users to join and exit at their leisure, compliance has been a problem. They’re also resistant to censorship, which makes compliance even more difficult.
In the DeFi area, compliance implies that apps must follow KYC, AML, and CFT requirements, impacting users and enabling cooperation with conventional financial institutions.
Furthermore, adhering to standard financial regulatory rules may lead to widespread adoption and help a larger number of individuals. The nature of DeFi technologies makes it difficult to take steps toward compliance, necessitating organizations like the Concordium, Chain analysis, and AMLBot to assist. Traditional finance has faced similar challenges; since financial activities, such as payments and settlements, retail investing, and so on, authorities have been attempting to restrict unlawful operations, such as money laundering. Some of these solutions will need the ingenuity to fit into decentralized models without revealing users’ personal data.
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