PureFi Protocol & Specific Cases
Data is the main asset in the modern global economy. Private companies, governments, and common people are focused on securing their data. For Hacken Foundation, data privacy and data protection are not empty words but rather a key feature of all projects we launch. We realize that we can preserve users’ loyalty and trust only when they are confident that their data will not appear in the hands of cybercriminals. And PureFi is the right tool for users to have the ability to securely manage their data.
PureFi smart contract is capable of assigning the Money Laundering (ML) Score to the transactions or the crypto wallets, so Decentralized Exchanges (DEXs) can comply with the AML laws. However, PureFi can be very helpful in very specific cases as well.
Financial regulators worldwide actively recognize the existence of decentralized financial instruments and start treating exchanges as market participants. However, this recognition means the application of certain rules. What is acceptable and widely used in traditional finance is hard to implement in DEXs since users prefer keeping their identity or any other data private. This creates a challenge for DEXs operators related to filtering eligible users, for example, not allowing anyone below 18 to trade.
Moreover, the users have to provide information either to tax authorities or law enforcement agencies when they are not sure of the “purity” of transactions. How to prove something without sharing data?
PureFi protocol provides information via zero-knowledge issuers. The zero-knowledge-proof is the cryptographic method allowing to validate information without sharing or revealing any data. A simple example is checking the account password for correctness without revealing the actual password to the service.
The zero-knowledge-proof does not access the user data, but tests the hypotheses and accumulates probabilities to validate the required information.
For example, when a user needs to prove that he is 18 years old or above, he can provide a PureFi VC certificate. This gives DEX access only to the approved information without disclosing other KYC and metadata from the Verifiable Credential Wallet (ZK SNARK). In this way, the user remains completely anonymous, and DEX meets the regulatory requirements.
Alternatively, the tax authority from any jurisdiction might request the user who has purchased crypto assets on a decentralized exchange to provide more details about the origin of the funds. The user in this case also can provide the tax authorities with the relevant information extracted from the PureFi NFT certificate. Thus, the tax authorities’ inquiry will be satisfied while the other non-relevant information will not be revealed.
Finally, the users that have employed the PureFi smart contract and obtained the Verified Credential certificates protect themselves and their funds in case of a law enforcement investigation. It might happen that “dirty” money leak into the liquidity pools of the unregulated DEXs and mix with the “clean” money. In case of a criminal investigation, the law representatives may inquire about the origin of the funds if the “dirty” money trail leads to the user. In his turn, the user can avoid any suspicion or further inquiry after providing the law enforcement agents with the PureFi VC certificate containing the origin of funds and associated low ML risk score.
PureFi smart contracts are designed to provide only requested information that is pre-approved by the user without sharing any sensitive or unwanted information. This is a pure revolution in the information-sharing capabilities allowing the DeFi participants to keep the data private while avoiding any connection to “dirty” money and complying with all AML regulatory requirements.
It is a great success for Hacken Foundation to launch a project that is centred around data protection. Many great solutions fail due to the failure to guarantee 100% protection of users’ data. It’s not about PureFi. These guys know what they do and know what are the users’ expectations on data security. PureFi is the solution allowing you to be the only owners and managers of your private information.
About Hacken Foundation
Hacken Foundation gives a boost to innovative cybersecurity solutions by empowering the Hacken Ecosystem through HAI Tokenomics. All projects pass a strict pre-approval procedure before entering Hacken Foundation so that potential investors may be absolutely confident of the projects’ transparency and protection of their assets. Hacken Foundation has successfully launched 4 projects including HAPI, disBalancer, ArtWallet, and PureFi. It is just the beginning of our long journey. We keep on looking for solutions that will make difference.
View more info about PureFi at:
Telegram Group: https://t.me/purefigroup
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Hacken Club Reddit: https://www.reddit.com/r/hacken/
Hacken Club Telegram Ru: https://t.me/hackenclub_ru
Hacken Website: https://hacken.io/
Hacken Foundation Website: https://hackenfoundation.com/