LTO Network Integrating Chainlink Oracles to Bring Accreditation Data to Ethereum dApps
We are excited to announce that LTO Network is integrating Chainlink’s market leading decentralized oracles to bridge investor accreditation data from the LTO blockchain onto the Ethereum network to be used within smart contracts.
Users can publish their certification data (X.509, the basis of HTTPS and SSL) onto the LTO Network and associate this data with a specific Ethereum address. A Chainlink-powered decentralized oracle will be used to query the LTO Network blockchain and cross-reference a particular ETH address (public key) against the accreditation status for an ICO, IEO, or similar token sales. This will allow dApps to ensure full compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations when dealing with financial transactions on a public blockchain.
By leveraging the unique properties of LTO Network, Chainlink, and Ethereum, we are creating a flexible solution to solve one of the largest problems facing smart contract adoption in the traditional financial ecosystem; compliance. However, in order for LTO Network’s accreditation data to be trusted on an external blockchain like Ethereum, a secure oracle solution is required to ensure data transfer between environments is resistant to any form of manipulation or downtime.
After extensive due diligence, we have chosen Chainlink as our go-to oracle solution to bridge the gap between LTO’s real world accreditation data and any smart contract enabled blockchains. Chainlink already has a large collection of security reviewed node operators that operate across all the leading blockchains and are relied on by many top DeFi projects to secure over a billion dollars in value. This makes it an easy integration for Chainlink’s growing ecosystem of users to build fully compliant decentralized finance (DeFi) applications via a simple Chainlink oracle request.
A Deeper Look Into LTO Network’s Accreditation Solution
LTO Network is a hybrid blockchain solution for securing, verifying, and exchanging business critical information. Through anchoring, identification, associations and peer to peer data exchange, LTO Network is setting a new standard for how data interacts with the blockchain.
LTO Network is introducing a new data structure for transactions to allow users to sign with a large number of different cryptographic algorithms. For example, users can sign with SECP256K1 ECDSA and use the same key pair as you do for the Bitcoin or Ethereum networks. Next to that, users can also sign using RSA keys, which are commonly used for SSL certificates.
This feature allows organizations to use their existing key management system on LTO Network, which opens the door for many other interesting use cases. Associations on LTO Network are a transaction type to establish a directional relationship between addresses. Association type 1 indicates that both addresses have the same owner.
SSL Certificates can be published on LTO Network as verifiable credentials for an organization, whereas Extended Validation (EV) is the highest level of authentication for SSL certificates. Obtaining an EV certificate requires an extensive identification process, similar to a KYC procedure. As a result SSL EV provides a universally trusted method to connect the identity of an organization to a specific RSA key pair.
Combining SSL EV and associations provides a verifiable record of ownership for any blockchain address. This is done by creating a type 1 association from the address from the RSA key of your SSL EV certificate to your ECDSA address.
Incorporating Chainlink with LTO Network
Chainlink oracles can track changes on LTO Network, including issuance or revocation of these associations, and cross-reference these associations with other available information.
For example, to comply with regulations of a smart contract on Ethereum, an organization is only allowed to interact with addresses of accredited participants. Currently, it’s up to the owner of the contract to verify the identity and accreditation of each participant via a centralized process and submit the address to the smart contracts. This is very time consuming for any dApp to implement, especially when considering the rate at which development takes place in the DeFi ecosystem. Falling behind due to regulatory hurdles may hinder a dApp’s ability to compete.
LTO is using Chainlink to provide a fully decentralized and quickly integratable alternative, where users can provide credentials through LTO Network, which Chainlink oracles can cross-reference against when determining whether or not a user on Ethereum satisfies the accreditation requirement. In essence, this provides a form of puggable compliance via a Chainlink oracle that queries LTO Network for accreditation data.
Commenting on the possibilities:
“Credentials are a critical component of financial applications, especially in the enterprise world. We’re excited to make our suite of investor and business accreditation solutions quickly available to any blockchain environment through Chainlink’s decentralized oracle network. This opens up the door for institutional investors to get involved in DeFi and other blockchain applications, while also allowing developers to easily integrate trusted credential solutions without having to build something from scratch.”
Rick Schmitz, CEO of LTO Network
This integration is a major advancement for DeFI, as it brings a critical component to the smart contract ecosystem without slowing down the rate of innovation or forcing users onto a seperate platform than they currently operate on. Although Ethereum is currently the hotbed for DeFi and other dApps, Chainlink provides LTO Network with the ability to securely and reliably bridge accreditation data to any blockchain environment.
About LTO Network
LTO Network is a hybrid blockchain that focuses on data integrity, on-chain credentials and decentralized collaboration in the B2B sphere. Doing 60.000 transactions per day, LTO Network is amongst the most-used blockchain’s in the world delivering real-world solutions for tech companies, enterprises and governments.
If you’re a developer and want to connect your smart contract to off-chain data and systems, visit the developer documentation and join the technical discussion on Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open source blockchain abstraction layer for building and running decentralized oracle networks that give smart contract on any blockchain access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
Note: chainlinkecosystem.com does not claim any ownership of this content, all credit to LTO Network, view official announcement.