It goes without saying that the past couple of years saw the cryptocurrency market advance a whole lot. The total valuation of the entire industry surpassed $2 trillion, making it a well-recognizable force to be reckoned with. Many new projects came to life, some of which achieving multi-million dollar capitalizations with various use cases and transformative features.
One thing that also became clear, though, is that regulators seek compliance. Most of the leading cryptocurrency exchanges and service providers have implemented rigorous compliance requirements to make sure they stay on top of existing legislation.
Know-Your-Customer (KYC) and Anti-Money Laundering (AML) are among the main concerns for regulators across the board, and ParallelChain steps into the field, delivering high-performance solutions in the field.
What is ParallelChain?
According to its Whitepaper, ParallelChain brings forward a distributed, public smart contract platform that implements the Byzantine Fault Tolerant (BFT) State Machine Replication techniques in an effort to guarantee very high throughput and low latency in clusters with >100 validator nodes.
It’s worth noting that this is the public ParallelChain Mainnet, but there’s also a private network called ParallelChain S for building enterprise applications. The main difference is that in the former, each node’s state cache maintains a full picture of the world state, while the latter trades BFT for dramatically higher throughput and lower latency for enterprise and commercial use cases.
Another notable feature of the private ParallelChain is that it ensures the apps running atop are compliant with data privacy regulations, including GDPR. This brings us to the next point: KYC and AML concerns.
Addressing KYC Concerns
First off, it’s important to note that ParallelChain is not a new project, but one with experience and in the market for over 3 years. It came to light in 2018, and since then, it has been a permissioned blockchain platform powering a range of enterprise apps and services, including KYC and AML checks.
Some of the strong points of the ParallelChain-based KYC include:
- A.I.-powered multi-biometric technology that uses anti-spoofing facial recognition to counter fraudsters at client onboarding. It also offers palm print recognition and voice recognition to facilitate secure user authentication.
- Client biometric data protection protocol. Data security is a key concern when handling clients’ biometric data, which is why ParallelChain stores these data in a non-readable format, rendering them useless for any other purposes.
- Real-time processing. Anti-spoofing checks need to be instant and therefore require a system with incredibly fast response, the 0.003s latency of private ParallelChain makes it one of the very few, if not the only, blockchains capable of supporting real-time applications.
- Patented blockchain design that ensures the client data management protocol is in compliance with data privacy regulations, including the EU GDPR.
- Internal monitoring system to prevent data leaks or potential misuse.
Solutions Tailored For the Crypto Industry
Despite all of the efforts made in the past year or two, the broader cryptocurrency industry remains widely unregulated. This makes traditional businesses reluctant to enter and provides challenges on their own.
To tackle this issue and help with further adoption, ParallelChain offers KYC & AML services that are tailored for the cryptocurrency space. The emphasis of this solution is placed on deep-learning-enabled features that involve global assets dataset screening, anomaly detection, and so forth.
At the heart of the ParallelChain project is the private-public integration that aims to bridge the two worlds through accountability, stability, as well as security. These are essential elements when it comes to institutional adoption.
The native token that underpins the entire ecosystem is XPLL, an ERC-20 utility token. In terms of utilities, the token can be staked to delegate or run nodes, just like other public chain tokens. For institutions looking to build apps on the private platform or to use the readily available apps and services, they can use XPLL as a payment token (these tokens will be burnt at redemption).