Shyft Network, which is a public blockchain protocol designed to aggregate and embed trust and validation into data stored on public and private ecosystems and permissioned and permissionless networks, being a potential solution to the Financial Action Task Force’s ‘’Travel Rule’’ adopted by Binance, a global cryptocurrency exchange providing a platform for trading more than 100 cryptocurrencies, to assist address a looming regulatory requirement that firms have to share users’ personal data when managing digital asset transactions.
The adoption of Shyft is done by Binance because the network is acute and very well connected with global regulators. According to the firm, getting the public endorsement of Binance is really a gigantic issue for the Shyft Network. The firm reportedly appointed Rick McDonell, former FATF executive secretary, as an advisor some days earlier. Shyft Network has been working with a lot of the big exchanges for last few months and among those the name of Binance came to light. The FATF will review progress on addressing the travel rule for virtual asset service providers in June. Binance is reportedly searching for other solutions too but as of now the focus is on Shyft. There are many moving parts in travel rule requirements.
The solution adopted by the industry should go with every environment. There may be sort of a competing factor or competitive advantage. But they won’t have much of a choice when they get big enough in the future other than to be working with others to please the information transfer and relay requirements. The Shyft Network constitutes three layers for example the network itself is a blockchain, the second layer is a smart-contract infrastructure and the third layer on top is where the actual data transmission happens. The lower layers of the system reportedly are interoperable with other travel solution providers including CipherTrace, Netki and OpenVASP of Switzerland. As known, Shyft blockchain is a forked version of ethereum, one can deploy all of OpenVASP’s smart contracts fully onto Shyft. According to other’s belief, decentralized blockchain-based approach can solve the travel rule and many others are expected to rely upon centralized system.