Cryptocurrencies and blockchain technology have changed the way we look at financial transactions and the way we relate to money. But as they brought investor anonymity and greater transaction speed, they also brought fraud, impersonation, and misuse of regulated products. These unresolved flaws, and not Warren Buffet’s opinions, are the real reason why the adoption of the blockchain by many key industries hasn’t happened.
But now, an Israeli company is working on a security solution that aims to solve most of the safety issues with the blockchain. The platform is called Trusti and it provides secure cross-chain identification that allows companies to generate regulated and accredited wallets. Those wallets can be used for anything from trading authorized securities to issuing cryptocurrency loans. This same verification protocol can protect individuals from sending funds to fraudulent addresses by identifying the name of the wallet owner to whom they are sending the funds. Currently it is not possible to trade securities using cryptocurrency without doing off-chain inquiries into the identity of the wallet owner you are transferring funds to. Trusti came up with a technology that supplies that information for you.
For the time being Trusti is only aiming this wallet identification platform to private companies but it may be be available to individual investors in the near future. CEO Zachary Swerdlow adds “We want to protect the investors. Products like Trusti are the only ones that can make the ecosystem safe”.
The way Trusti works is pretty simple. For example if a company like a bank wants to issue cryptocurrency wallets to their clients Trusti allows that company, after passing a thorough verification process to become a Certification Authority. That status as a Certification Authority allows the bank to issue certified wallets to its clients. When requesting funds to one of those client wallets, Trusti can prove that the wallet belongs to that bank.
Trusti has a point, without trust there can be no investment.