What is the Shyft Network?

The Shyft Network is a blockchain-based solution for centralized and decentralized technologies, like decentralized finance (DeFi). It’s a technology layer that aggregates and embeds trust into data stored on private and public ecosystems.

It essentially creates a protected data transaction layer for industry and the public sector, bringing, among other things, digital identity into the 21st century. In this article, we explore the Shyft Network technology and one of it’s most relevant use cases: compliant DeFi.

What Is Shyft?

We believe that your information is only as secure as the weakest link in the chain of connected services and devices which handle it. That’s where Shyft Network comes in.

Shyft Network was designed as an interoperable standard for use cases that require multiparty trust and validation. We took a fundamentally different approach to data and identity thanks to its founders’ long history with Bitcoin, dating back to early 2010.

The Shyft Network enables identity verification, validation, and the sending of credentials and other data across multiple different blockchains and networks.

The true goal of identity entails not having to give entities your information to verify who you are every time you open a new account. The question we asked is, How do you derive digital identity? We baked identity into the network.

Shyft Network never keeps or touches any personal identifiable information on the blockchain.

Since Shyft manages identity information in a receipt-esque system, a digital receipt acts as proof that you have hitherto worked with another participant or entity on the network. Moreover, there’s a revocation process, where the protocol can invalidate a former receipt, depending on the compliance requirements, which differ across jurisdictions and situations.

With a focus on the requirements of the Financial Action Task Force (FATF), as well as the KYC compliance issues that the blockchain ecosystem faces today, we’ve set out to ensure identity information is secure so that exchanges can forward customer data without violating privacy.

Technologically speaking, the Shyft Network’s identity solution can be thought of as an OAuth2-type interface for Web 2.0 and 3.0 applications with 2FA applications. Users can negotiate the exchange of their information, giving them control over their data.

By enabling the secure and auditable messaging between users and trusted parties, the Shyft Network empowers these parties to onboard new users in accordance with global compliance. The trusted parties can then, assuming user consent, send proof of relevant information about users to other parties by request. User data can be protected by their personally identifiable data through an opt-in framework.

Our focus is on institutions and public networks. We work with everyone from banks, institutions, exchanges, regulatory bodies, as well as central banks and governments, bridging the crypto ecosystem to the traditional world.

Who Uses Shyft?

Trust Anchors

Data Consumers

Data Owners

Data Owners receive offers from Data Consumers for pre-approved services that require proof of trusted data. Data Consumers pay a small fee to the Data Owners and Trust Anchors for valid information.

The Shyft Ring

Key Network Features

The Shyft Block Explorer

Smart Contracts

Shyft Safe

The SHFT Token

SHFT is a currency for identity and data transmission, as well as a governance mechanism for coordination across ecosystems that enables entity-to-entity governance, compliant asset creation, and a system for compliant defi and other applications. Enabling a new side of the existing ecosystem will drastically expand the size of market participants and increase the size of asset participation across all decentralized projects, protocols, and marketplaces.

You can read more on the SHFT token here.

Interoperability

For instance, certain blockchains might serve different business logics better than others. That’s why the Shyft Network must be compatible across blockchains. Shyft’s interoperability bridging layer works across other networks to leverage the advantages that these networks hold.

We create the layer that assigns and proves data. Collaborative interoperability is paramount to the Shyft Network vision so that projects can work across diverse ecosystems and ensure that they conform to certain requirements when necessary.

Here’s one example of what Shyft Network can do for the Oasis Network.

Shyft Network Use Case — Introducing Compliant DeFi

Traditional financial institutions strictly adhere to Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating The Finance of Terrorism (CFT) guidelines. As permissionless, opt-in, trustless p2p networks without a central authority to enforce these requirements, blockchain-based networks often fail to do so.

The Current Problem

  1. Large Liquidity Providers are blocked from interacting with the DeFi space because of regulatory constraints and lack of clarity on existing and upcoming regulations which requires them to obtain information on the source and destination of funds.
  2. Similarly, platforms within the DeFi space are blocked from accessing deeper capital markets because of the small opportunity space relative to the total potential addressable market assuming regulatory compatibility.
  3. Regulators are forced to comprehend the space through the lens of (potentially obsolete/irrelevant) loosely-matching, past environments that regulations have applied to previously.

The Shyft Network solution for DeFi

  1. Creation of Compliant Assets and Asset Pools. Only verified individuals and organizations will be able to create compliant DeFi assets and asset pools such as loans, liquidity pools, derivatives, governance tokens etc.
    The Shyft Network can function as a validator for DeFi participants. Verified players will have their addresses whitelisted, enabling them to participate, create, and have access to compliant assets.
    Malicious and suspicious actors will be blacklisted as a precaution to other users, which is aimed at minimizing risk.
  2. Compliant Decentralized Credit Scoring. As part of its continuous development plan for 2021/2022, Shyft Network plans to deploy a blockchain-based credit scoring method that relies on users’ data stored on nodes rather than using their credit scores from the legacy financial system.

This framework will help generate better credit scores for an open and independent DeFi ecosystem. Our goal is to tackle the over-collateralization problem in DeFi, improve access to credit, and open the door for legacy lending institutions’ entry into the ecosystem.

Shyft empowers users to take data and assign or validate it against multiple different participants. It is a network based on trust so participants can derive identity or data for compliance requirements, and much more, so that crypto can thrive in the traditional world.

Bring crypto to the world with Shyft, and join the network today.

Shyft Network aggregates trust and contextualizes data to build an authentic reputation, identity, and creditability framework for individuals and enterprises.

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Shyft is the credential verification network with proof-of-sender protocol and that reclaims trust, identity and credibility for humanity. www.shyft.network