1) Part 2(3)
Having understood the basics of Shyft Discover & Veriscope Share, it's time to understand how VASPs use them!
However, for today, we will only focus on Shyft Discover’s workflow. Let's go.
Having understood the basics of Shyft Discover & Veriscope Share, it's time to understand how VASPs use them!
However, for today, we will only focus on Shyft Discover’s workflow. Let's go.
2) It all starts with a customer requesting to withdraw his funds from a VASP (read: crypto business). 👀
Before we move forward, let's understand a few terms:
The VASP that the customer withdraws funds from is called Originating VASP or oVASP.
Before we move forward, let's understand a few terms:
The VASP that the customer withdraws funds from is called Originating VASP or oVASP.
3) And the VASP receiving the funds from the Originating VASP is called Beneficiary VASP or bVASP.
Now, when a customer requests to withdraw his funds from oVASP, the oVASP sends an attestation to the Shyft Network.
Now, when a customer requests to withdraw his funds from oVASP, the oVASP sends an attestation to the Shyft Network.
4) Think of an attestation as a secret message which contains both user data and the transaction.
However, the user data remains confidential, as it is encrypted.
However, the user data remains confidential, as it is encrypted.
5) Other VASPs can now check the attestation and determine if the address belongs to them.
If it does belong to any of the #VASPs, they can use the historic lookup feature to know more about the originator VASP. 🔎
And then, they can decide if they want to respond or not.
If it does belong to any of the #VASPs, they can use the historic lookup feature to know more about the originator VASP. 🔎
And then, they can decide if they want to respond or not.
6) Analogically speaking, this entire process is just like sticking confidential notes on a public bulletin board.
And the process remains the same even when a company or an entity owns multiple VASPs.
And the process remains the same even when a company or an entity owns multiple VASPs.
7) For example: Different VASPs in different jurisdictions for jurisdictional licensing reasons.
This also helps VASPs meet AML/CFT & #data privacy risk obligations.
This also helps VASPs meet AML/CFT & #data privacy risk obligations.
8) But what's the guarantee that the VASP claiming to be the beneficiary or originator is telling the truth? 🤔
Shyft Network has rolled out "Address Proofs" recently, enabling beneficiary VASPs to prove that they actually control the respective wallet address.
Shyft Network has rolled out "Address Proofs" recently, enabling beneficiary VASPs to prove that they actually control the respective wallet address.
9) And this will further enable Originator VASPs to verify who owns the beneficiary wallet address.
Read more about Address Proofs here:
shyft.network/newsroom/veris…
Read more about Address Proofs here:
shyft.network/newsroom/veris…
That’s it for today. We will be back with a Twitter thread on Veriscope Share’s workflow tomorrow.
In the meantime, leave your questions below if you have any & we will respond to them asap!
In the meantime, leave your questions below if you have any & we will respond to them asap!
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