Chainlink launches private blockchain transactions for financial institutions
Chainlink, a decentralized blockchain oracle network based on Ethereum, has introduced new technology to help financial institutions secure their data when transacting across blockchain networks. With this innovation, institutions can use blockchain applications without compromising their privacy.
New privacy features for financial institutions
On October 22, Chainlink announced two new features specifically designed for financial institutions looking to conduct blockchain transactions with full privacy protection.
Blockchain Privacy Manager and CCIP Private Transactions
The new functionalities include the Blockchain Privacy Manager, which enables private blockchains to integrate with the public Chainlink Platform, and an encryption protocol called CCIP Private Transactions.
ANZ Bank pioneers new technology for tokenized assets
The Australia and New Zealand Banking Group (ANZ Bank) is one of the first financial institutions to test Chainlink‘s privacy-preserving technology. ANZ Bank will use this technology for settling tokenized real-world assets (RWAs) under the Monetary Authority of Singapore‘s tokenization project, Project Guardian.
Blockchain privacy manager: Connecting public and private blockchains
With the new Blockchain Privacy Manager, institutions like ANZ Bank can link private blockchains to both public and other private blockchains via the Chainlink CCIP network. Additionally, this technology provides a connection between traditional financial systems and private blockchains through the Chainlink platform.
CCIP Private Transactions for secure, encrypted transactions
The CCIP Private Transactions protocol allows institutions to encrypt and decrypt sensitive information such as token amounts and counterparties when transacting across multiple private blockchains.
Why private blockchain transactions are important for financial institutions
The lack of secure, privacy-friendly solutions for cross-blockchain transactions has so far prevented many financial institutions from operating on blockchain networks. Data protection requirements, such as those outlined by Europe‘s General Data Protection Regulation (GDPR), are a key factor in this.
Chainlink enables secure blockchain transactions
To comply with GDPR, institutions must ensure complete privacy in private-to-private blockchain transactions and limit data exposure in private-to-public blockchain transactions.
According to Sergey Nazarov, co-founder of Chainlink, privacy is a critical requirement for most institutional transactions. He expects significant growth in blockchain adoption by financial institutions now that Chainlink makes secure, privacy-friendly transactions across different blockchains possible.