Chainlink, a decentralized blockchain oracle network built on Ethereum, has introduced new technology designed to help financial institutions carry out private transactions while maintaining data security across blockchain networks.
On October 22, Chainlink unveiled two privacy-focused tools aimed at institutions that want to use blockchain technology while ensuring complete privacy. These tools include the Blockchain Privacy Manager, which facilitates private blockchain interactions with the public Chainlink platform, and a new encryption protocol called CCIP Private Transactions.
ANZ Bank to Pilot the New Technology
Australia and New Zealand Banking Group (ANZ Bank) will be one of the first to use Chainlink’s privacy solutions. The bank plans to test this technology for settling tokenized real–world assets (RWAs) as part of Singapore’s tokenization initiative, known as Project Guardian.
Using the Blockchain Privacy Manager, institutions like ANZ can securely connect their private blockchain systems to other public and private blockchains through Chainlink’s public network. The new privacy tools also enable connections between traditional financial systems and private blockchain environments. The CCIP Private Transactions protocol allows institutions to encrypt sensitive data, such as transaction amounts and counterparties, while conducting business across multiple private chains.
Why Privacy is Crucial for Institutions
According to Chainlink, one of the key obstacles preventing financial institutions from fully engaging with blockchain technology has been the challenge of maintaining data privacy, especially in line with regulations like Europe’s General Data Protection Regulation (GDPR). Chainlink’s new solutions address this need by ensuring end-to-end privacy and limiting data exposure during private-to-public and private-to-private chain transactions.
Chainlink’s co-founder, Sergey Nazarov, highlighted the importance of privacy in institutional transactions, noting that the launch of these privacy features could lead to significant growth in blockchain adoption among institutions.
Summary Review: Chainlink has launched new privacy-enhancing tools designed to help financial institutions conduct secure blockchain transactions. These tools, including the Blockchain Privacy Manager and CCIP Private Transactions, will enable institutions like ANZ Bank to settle tokenized assets across blockchain networks while maintaining data privacy. This development addresses concerns about privacy regulations like GDPR and is expected to increase institutional adoption of blockchain technology.
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