Shyft Network Profile picture
Dec 2 11 tweets 4 min read
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.
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.
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.
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.
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.
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.
7) For example: Different VASPs in different jurisdictions for jurisdictional licensing reasons.
 
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.
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…
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!

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More from @shyftnetwork

Dec 1
1) Part 2(2)

It's time to get to know about Shyft Discover & Veriscope Share! 👀

These two are integral parts of the Shyft Veriscope's Travel Rule infrastructure.

So, what's the exact role of Shyft Discover & Veriscope Share? 🤔 Let's see.
2) Shyft Discover enables VASPs (Read: #crypto businesses) to discover VASPs & do address attribution. 🔍

All that VASPs require to search for their counterparty VASPs is a wallet address & Shyft Discover will auto-detect their counterparty VASP based on it.
Read 8 tweets
Nov 30
1) Part 2/1

Having covered the basics of Shyft Veriscope last week, it's time to go up a notch and understand it in a bit more detail. 👀

However, we will keep it simple and cover various key segments of Shyft Veriscope over the next few days.

So, here we go.🚶‍♂️
2) Let's first refresh on what Shyft Veriscope is!

It is an end-to-end solution to comply with the #crypto Travel Rule. 💡

Shyft Veriscope comes with:

✅ RESTful APIs 
✅ Webhooks
3) What are RESTful APIs? 🤔

Think of RESTful APIs as a mechanism that enables VASPs (read: #crypto businesses) to exchange data between them securely over the web.

And they grant an impressive deal of flexibility to VASPs.
Read 9 tweets
Nov 29
1) Nigeria 🇳🇬 seeks to draw a clear line between #cryptocurrencies & digital assets.

With this, it joins the likes of South Korea 🇰🇷, Hong Kong 🇭🇰, and Singapore 🇸🇬.

According to them:

Digital assets = stablecoins, #NFTs, and CBDCs
Cryptocurrencies = #Bitcoin, Ethereum, etc
2) This development comes from the head of the Nigerian Securities and Exchange Commission, Lamisil Yuguda.

The Nigerian SEC isn't really enthusiastic about the proliferation of #crypto assets within the country's borders.
3) And this reflects in its instructions to local banks not to provide services to companies engaged in crypto activities.

However, #crypto isn't banned in the country. ⚠️
Read 5 tweets
Nov 24
Continuing the Veriscope Twitter Series, it's time to learn the basics of Veriscope Share! 👀

As we highlighted in the previous Twitter 🧵, it's mandatory for VASPs (read: crypto businesses) to share user data along the #crypto transactions under the FATF Travel Rule.
2) User data = Sensitive data! 🚨

Yet, there's no globally-agreed framework that can securely process user data between VASPs.

Some Travel Rule Solutions can help VASPs with the sharing part!

But there's something you must know here.
3) Some #TravelRule Solutions process user data between VASPs through their internal servers.

Meaning VASPs' data passes through the Travel Rule Solution's servers before being sent to VASPs for Travel Rule compliance.
Read 7 tweets
Nov 22
1) After learning the basics of attribution (read: VASP discovery), it's time to know about Address Proofs.

It's a new feature that Shyft Veriscope has rolled out for VASPs (read: Crypto business). 🥁🥁

But first, let's recap why it is crucial to discover a VASP! 🔎 Image
2) It's crucial to know why VASP discovery is important as it will enable us to understand why Address Proofs are required in the first place.

First, the user data that VASPs share with their counterparty for Travel Rule compliance is sensitive.
3) ❌ And if a counterparty VASP's identity isn't verified, the sensitive data may be sent to the wrong VASP. 

This can result in devastating consequences.

Tap below to know about it in a bit more detail 👇

Read 8 tweets
Nov 18
1) Continuing from where we left off yesterday, we were to look into how Shyft Discover solves the VASP discovery, AKA address attribution issue.

But before we do that, there's something we must first understand: "Attestations"

It is a key functionality of Shyft Network. 💡 Image
2) So today, we will cover attestations, but only the basics, leaving meaty details for later.

What VASP stands for, though?

VASP = Virtual Asset Service Provider, which basically means a crypto-related business.

Let's begin now! Shall we?
3) Attestations enable VASPs to share user data along with transactions while keeping user data confidential. 

And it does so by encrypting user data.

(Note: Under the FATF Travel Rule, it is mandatory for VASPs to share user data along with crypto transactions)
Read 7 tweets

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