CRD Network partners with API3 to bring real-world data into the DeFi market
CRD Network is partnering with API3 to build on its proof of reserve protocol. The partnership will see API3 deploy a node for CRD Network’s proof of reserve protocol thus advancing CRD Network’s vision of bringing real-world data to the DeFi landscape.
CRD Network issues proof of reserve as a feature that enables an entity to prove ownership rights to crypto or non-crypto-based assets without revealing the underlying assets on the blockchain. This is an important feature for DLT providers or DAOs that wish to remain compliant with KYC laws without exposing sensitive information like account balances and transaction history, which is often used for risk analysis and customer due diligence.
CRD Network’s proof of reserve protocol ensures that each institution keeps a record of all accounts on the blockchain and verifies their exact balance on the day of accession to the blockchain by comparing it with the sum of its accounts’ balance. Each proof of reserve attempt is stored and validated on the blockchain thereby enabling the immutability of the sensitive data. Therefore, CRD Network is capable of merging the world of decentralized fiance (DeFi) with regulatory procedures inherent in traditional finance through an API (Application Programming Interface) that is capable of complying with KYC/AML (Know Your Customer/Anti-Money Laundering) laws. This is the first real-world application that merges DeFi mechanisms with TradFi principles.
According to CRD Network’s Whitepaper, “The main benefit of using this setup is its ability to interact and bring your everyday financial data on-chain. At its core, CRD Network bridges the Regulatory gap between the on-chain and off-chain economy.”
What API3 is Bringing to the Table
With the integration of API3, whose Airnode is used by the largest number of API providers on Web3, the CRD Network will see the publication of additional data which will provide greater levels of transparency on CRD Network’s Proof of Reserve (PoR) protocol.
Given that CRD Network is built on the Hyperledger Besu which is a private blockchain network on Ethereum’s ecosystem, each PoR request will bring the platform closer to the implementation of real-world applications in the DeFi space.
API3 has already established a network of trustless applications that interact with Web 3 platforms as oracles providing access to off-chain data. At the moment, API3 is championing the move from legacy third-party oracle solutions to first-party oracle networks that deliver more security, efficiency, and data transparency.
For example, API3’s Beacons provide Web 3 platforms such as CRD Network light-weight, first-party data feeds at reduced costs not to mention they provide access to infrequent data that is not easily accessible on the existing web.
This makes it easy for developers on CRD Network to create dApps (decentralized applications) that are scalable and capable of continuously updating streams of off-chain data such as a user’s financial history, banking transactions, and asset values to help create a more trustworthy environment for users and organizations that rely on CRD Network.
With most of the DeFi landscape currently unregulated, this partnership will strengthen CRD Network’s capacity to access trusted and reliable data providers thereby enabling cost-efficiency, scalability, and transparency, and data accessibility across the DeFi landscape.
What’s Ahead for CRD Network and API3
Data availability and accessibility has become a hot topic in recent times with the explosion of Defi and smart contract based applications, regulators around the world trying to find ways to regulate this new decentralized landscape.
At the core of the problem is a lack of a regulatory and legal framework that provides a framework in which Centralized Finance is able to fully interact with Decentralized Finance and create a confident environment among users and organizations.
The CRD Network offers a solution to the existing trust gap by providing a regulatory compliant mechanism that is based on KYC/AML regulations thereby creating an environment of accountability and transparency. Thanks to its Proof of Reserve protocol, CRD Network does this without forsaking the ethos of decentralization which is the anonymity of data.
Going forward, CRD Network’s partnership with API3 will help bring even more data to the decentralized finance (DeFi) platforms.
API3 is the leading first-party oracle solution that makes real-world data accessible by smart contracts. With Airnode, API data can be queried from blockchains without having to use specialist node-operating middlemen. This architecture both eliminates the Sybil-vulnerable third-party node layer and reduces fees by cutting out the “middleman tax” paid to these node operators for their services. API3 is the perfect fit for any blockchain-based data service seeking to sell directly to consumers (since it leaves out node-operating middlemen).
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About CRD Network
CRD Network is a sidechain run on Hyperledger Besu. The project was created to solve the issue of regulation throughout the DeFi market. With most of the market currently unregulated, users are prone to scams and unethical practices. CRD overcomes this issue by bringing real-world data online. This data includes financial history, banking transactions and real world asset value. It is made anonymous and fully usable by smart contracts, dApps and Oracles. Each contributor on the platform is fully licensed and can also help users pass their Known Your Customer (KYC) compliance. This will help platforms understand who their user base is.
The project uses digital proof of physical asset reserves to establish transparency throughout transactions. This procedure helps businesses save costs by removing the need for intermediaries, whilst simultaneously offering immutable origination. This creates a certainty to assets and thus reduces the need for audits, QC and compliance. As the project continues to develop, it shows its potential to bring regulation to a potentially world changing market.