Veriscope is a smart contract-mediated, decentralized platform and API suite that combines a decentralized protocol with a global onboarding and governance system for global VASPs (Virtual Asset Service Providers). Veriscope packages the Shyft Network public blockchain protocol, together with Shyft Network Core (smart contract suite), and an API middleware that allows for a full end to end solution to the Financial Action Task Force’s Travel Rule requirement.
Veriscope leverages the Shyft Network to enable a global discovery layer, critical to the counterparty identification process as set out in the FATF guidance.
The Financial action task’s guidance recommendation 16, calls for the implementation of the Travel Rule into all Virtual Asset service providers (VASPs; custodial companies that deal in digital currencies). The travel rule refers to identification of known originators and beneficiaries across all transfer points in the ecosystem, requiring VASPs to share sensitive KYC information prior to transactions being completed across both counterparty institutions.
Veriscope´s mission is to ensure decentralized systems and public payment networks, like Bitcoin, maintain the core tenant’s, ethos, and functionality they were built on, while also ensuring that businesses can continue to be developed organically without requiring approval by a centralized authority or actor in order to complete everyday transactions.
The goal of Veriscope is to allow VASPs and the compliance regime they operate, to continue to maintain their own risk policies, and complete review of their users and transacting counterparts, without creating a centralized authority like SWIFT to manage transactional completion and counterparty risk.
FATF´s Travel Rule makes significant changes to how digital asset businesses operate, but even within that reality, decentralized solutions to centralized problems can reduce the time, costs, and overall friction involved in discovery, coordination and transaction completion, all while maintaining the speed and costs advantages that decentralized systems like Bitcoin provide.
Veriscope is a decentralized application suite that aims to solve problems pertaining to counter-party discovery, VASP-transaction discovery, and data sharing for the purposes of solving the Travel Rule.
Veriscope’s smart contract suite makes it perfectly compatible with any web2 and web3 system today. This enables custodial exchanges and centralized finance (CeFi) companies to leverage the public architecture, while also allowing decentralized exchanges (DEX’s), noncustodial wallets, and decentralized financial applications (DeFi) to fully integrate a compliance layer across their systems without changing the structure of how they operate.
The benefits of combining a blockchain into a solution that requires counter-parties who don’t explicitly trust one another, means the architecture and tooling for VASP discovery, transaction discovery and contractual rule creation and enforcement, resembles that of an open financial transaction network like Bitcoin or Ethereum. This allows for an interoperable system that can be leveraged across any crypto currency type without destroying fungibility of payment tokens, or centralizing sensitive information and system processes considered vital to the operations of a VASP.
Veriscope packages the following core systems together to complete the travel rule solution:
Shyft Core, The Identity, KYC, and Data sharing smart contract engine: The smart contract layer enables public key-based VASP identity, user consent, and counterparty cross-jurisdictional rule creation for VASP-to-VASP coordination.
Smart contracts define the data sharing and the transaction permissioning requirements for VASPs. Within this, the contracts define the information requirements, data and asset transit flows, conditionals formatting abilities, jurisdictional information, coalition information standards, trust anchor information, and more.
The Identity contracts outline a rule set by how broad data fields can be passed data, and therefore provides a universal binding standard for how all VASPs, current and future, will send and receive each other's datasets.
Veriscope API & SDK suite: The Veriscope SDK allows VASP’s to configure their own systems to ingest and hit the function calls of the Shyft Network smart contracts
Front-end testing dashboard for end to end testing of the API-suite, discovery layer onboarding and management
A Global VASP Discovery Layer: A global onboarding system, and decentralized lookup registry containing VASP data transmission requirements including:
- Jurisdictional data sharing information for each VASP, primary website & entity registration, API endpoints, Data transmission standards, data encryption and decrypt requirements and more.
- Other important information is included in the discovery layer such as attested confirmations by other VASP’s of the completion of network onboarding to suffice the Veriscope governance framework (ie. Know-Your-VASP), governance upgrades, coalition creation, proposed system updates, and more.
- Data sharing interoperability protocols will be added to give VASPs a clear view into what VASPs are using which Travel rule protocols (ie. Trisa, Netki, OpenVASP, etc.
VASPScan - The world's first VASP transaction explorer and VASP transaction discovery system:
- VASPscan pulls attestation transactions specific to Veriscope from the blockchain, identifies the attestations within transactions, and allows VASPs to discover a given counterparty who holds the receiving crypto currency address of a crypto transaction.
- This system allows VASPs listening for outgoing attestations that contain crypto currency addresses that they hold, to identify and respond to the sending VASP who wrote the attestation request.
- This solves the open problem of how VASPs identify transactions that are from VASP’s vs. non-custodial wallets