Chainlink launches privacy suite, including CCIP private transactions, blockchain privacy manager, and DECO sandbox

Odaily Planet Daily News According to official sources, the Chainlink platform has announced the launch of two new privacy protection features and updates to existing features, enabling Financial Institutions to maintain data confidentiality, data integrity, and support regulatory compliance when transacting across multiple chains. The Blockchain Privacy Manager for Blockchains allows institutions to integrate their private blockchain networks with existing systems, such as traditional enterprise backends, while limiting on-chain data exposure. This functionality enables private chains to integrate with public chain platforms, providing access to key off-chain data, such as Proof of Reserves (POR), Net Asset Value (NAV), market prices, and identity data, without exposing sensitive private chain data to third parties. Institutions can also use the public CCIP network to connect private blockchains to other public or private chains, while only displaying on-chain information required for each exchange transaction chosen by the institution. Using the Block Chain Privacy Manager, CCIP Private Transactions utilize a novel on-chain encryption/decryption protocol that allows institutions to transact across multiple private blockchains on the public CCIP network while keeping transaction details completely confidential. End-to-end encryption prevents Chainlink Node operators or other third parties from accessing sensitive information of institutional cross-chain interaction transactions, including token quantities, sender/receiver addresses, and data instructions. The encryption secret key is generated and held by institutional users and can be selectively shared with their chosen counterparts, such as transaction counterparts, compliance auditors, or financial regulatory agencies. Chainlink's new privacy feature has been adopted by major Financial Institutions for tokenization asset's Cross-Chain InteractionSettlement, complementing Chainlink's existing privacy features, including DECO - a ZK-oracle technology for privacy-preserving verification of network data. In the near future, the team plans to support DECO sandbox for public access, providing pre-configured use cases to showcase DECO's privacy features.