Chainlink unveils private blockchain transactions for financial institutions
Chainlink, a decentralized blockchain oracle network based on Ethereum, unveiled two new privacy-preserving features on October 22nd, aimed at financial institutions who wish to use blockchain apps while maintaining total end-to-end privacy.
Today at #Sibos, we unveiled Chainlink’s new privacy capabilities that connect private chains to the multi-chain economy and accelerate institutional blockchain adoption.
— Chainlink (@chainlink) October 22, 2024
🔐 CCIP Private Transactions
🛡️ Blockchain Privacy Manager
🏗️ DECO Sandbox
🧵👇https://t.co/TWjbH3IovZ
A new technology has been introduced by Chainlink to help financial institutions protect data privacy when conducting transactions across blockchain networks, according to a statement.
Introducing the Chainlink platform privacy suite
Among the new privacy features are the encryption protocol called CCIP Private Transactions and the Blockchain Privacy Manager, which makes it easier to integrate private chains with the public Chainlink Platform.
The company stated in the blog post that it is thrilled to present two new privacy-preserving features of the Chainlink Platform, along with an update to an already-existing feature that helps financial institutions to support regulatory compliance and preserve data confidentiality and integrity when conducting business across the multi-chain economy.
Major financial institutions have already begun testing Chainlink's new privacy-preserving features for the cross-chain settlement of tokenized assets. All things considered, the Chainlink Platform gives organizations the ability to protect sensitive information that is kept in offchain systems and on private blockchain networks, as well as when conducting transactions across blockchain networks, the post added.
Blockchain privacy manager
While limiting onchain data exposure, the Blockchain Privacy Manager enables organizations to integrate their private blockchain networks with pre-existing systems, including traditional enterprise backends.
By integrating private chains with the open Chainlink Platform, this feature enables users to access critical offchain data, such as market prices, Proof of Reserve (PoR), Net Asset Value (NAV), and identity details, without revealing private chain details to outside parties.
CCIP private transactions
The Chainlink Labs research team has created a new onchain symmetric encryption/decryption protocol called CCIP Private Transactions, which builds on the new Blockchain Privacy Manager and expands the Chainlink Platform's privacy capabilities by enabling completely private cross-chain transfers between private blockchain networks via the public CCIP network.
Additionally, institutions can use the public CCIP network to link private blockchains to other public or private chains, revealing only the onchain data that the institution deems necessary for each transaction.
Through the use of the Blockchain Privacy Manager, CCIP Private Transactions uses a new onchain encryption/decryption protocol that allows institutions to use the public CCIP network to conduct transactions across multiple private blockchains while maintaining complete confidentiality of the transaction details.
Token amounts, sender/receiver addresses, and data instructions are among the sensitive information of institutional cross-chain transactions that end-to-end encryption prevents from Chainlink node operators and other third parties.
Chainlink DECO sandbox
The Blockchain Privacy Manager and CCIP Private Transactions complement existing privacy-preserving features of the Chainlink Platform, including DECO, a state-of-the-art ZK-oracle technology for securely authenticating web data.
Chainlink plans to make the DECO Sandbox publicly available soon, providing pre-configured use cases that highlight DECO's privacy-preserving features. DECO offers a variety of techniques for producing offchain data attestations that can be used in both onchain and offchain contexts while maintaining privacy.
Since its successful integration across more than 20 public blockchain networks, Chainlink—a blockchain-agnostic protocol—has enabled over $16 trillion in transactional value and brought more than 15 billion verified messages onchain.
Disclaimer
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