TheVault Lab, a Singapore-based cybersecurity company, today announced a joint venture with the NEM Foundation to create an anti-fraud solution that uses a consensus network to identify fraudulent cryptocurrency wallet addresses prior to a transaction taking place.
The solution leverages intel provided by participating in cryptocurrency exchanges, wallet owners, and custodians who supply a combination of black, grey, and whitelisted digital addresses to a decentralized database.
When the transfer of digital assets is ready to take place, whether it be a trade or purchase using cryptocurrency, The NEM Vault solution checks the supplying and receiving addresses to ensure that they are legitimate.
“It’s a simple solution. But meaningful for consumers who want guaranteed certainty when making withdrawals or paying someone that their transaction will not be sent to an incorrect address.”
Although public and transparent, blockchain-based transactions are mainly made through pseudo-anonymous alphanumeric addresses without any attribution to personal identification information such as the name, location, address, transaction bank, etc.
This is a massive pain point for transacting parties as trust is difficult to build. With this solution, transacting parties are provided with a ‘backstory’ of the counterparty address without the need of revealing any personal information.
The basic driver is that blacklisted addresses can be, based on the decision of the Exchange, ruled out from sending or receiving a transaction.
The solution will be built on a private NEM based blockchain taking advantage of Catapult’s superior stability and performance. While TheVault will be providing the development, NEM will be providing marketing and business development resources.
“This is Phase 1 in the rollout of TheVault’s security platform, a platform that comprises a Security Consensus Alliance powered by an AI-driven fraud detection solution and consumer protection layer.”
The solution is expected to be ready to go live in Q3 2019.
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