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HodlX Guest Post Submit Your Post Six steps on how an AML oracle for DeFi can work as a part of an atomic transaction It’s no secret that DeFi (decentralized finance) and AML (anti-money laundering) policies are difficult to align. Regulators and industry players advocate for the importance of regulation, but we face the stark reality – i t’s nearly impossible to implement effective oversight in this space. Meanwhile, stolen funds continue to be laundered through DeFi tools . How do we balance decentralization with legal obligations? Using oracles becomes an effective solution. Why traditional AML fails in DeFi – security and limitations of smart contracts Traditional AML policies struggle to adapt to the DeFi ecosystem because of a significant limitation. Smart contracts can’t make decisions that require external information, such as passing AML checks. These contracts are limited to the data available on the blockchain they run on. They cannot directly access data from other blockchains or external sources, such as websites or APIs. This is because smart contracts are executed by blockchain nodes, which do not have built-in internet connectivity and can only connect to their own blockchain. This design is intentional to preserve the security and decentralization of the blockchain. Blockchain consensus requires that all data used in a transaction must be recorded on the blockchain before the transaction can be executed. This ensures that the network operates in a trustless and secure manner, with all nodes agreeing on the same information. If smart contracts could connect to the internet, they would introduce security and operational risks. External data – like from websites or APIs – d oesn’t follow blockchain rules, making it possible for manipulated or false data to be fed into the system. Oracles bring additional information to DeFi apps This is where DeFi oracles play a key role. Oracles allow DeFi applications to bring in external data to the blockchain, enabling blockchain transactions to achieve consensus with this off-chain information. This information can include data from an AML platform, such as KYC (know your customer)/KYB (know your business) information, watchlists, blacklists, sanctions lists, transaction monitoring and transaction screening/filtering. The diagram below depicts how the AML oracle for DeFi works. How the DeFi compliance oracle works 1. User interacts with DeFi service Users engage with the DeFi service to perform common financial actions such as depositing, withdrawing, swapping, lending or staking assets. Before processing the transaction, the DeFi service must ensure the transaction complies with AML regulations. 2. DeFi service request to the AML oracle When a user initiates a transaction, the DeFi service requests an AML check for the user’s address and the associated data. The DeFi service communicates with the AML oracle smart contract, asking for the KYC/KYB assessment result and a transaction risk rating or address risk rating. 3. External AML provider monitors the AML oracle requests The external AML provider continuously monitors the AML oracle smart contract for incoming requests from DeFi services. Once the external AML provider detects a request, it begins the AML check based on the specific details provided in the request. 4. External AML provider screens blockchain and off-chain data The external AML provider conducts the AML check by analyzing both on-chain and off-chain data. On-chain data – such as transaction history, wallet addresses and other relevant blockchain activities Off-chain data, including sanction lists, watchlists and internet or deep web sources that contain information about suspicious addresses KYC/KYB data provided by users and linked to their corresponding blockchain addresses 5. AML provider responds After completing the check, the external AML provider writes the result to the blockchain and provides a reference to this data for the AML oracle smart contract. The result typically includes a pass/fail status and a link to more detailed data stored by the AML provider for audit purposes (to save on costly blockchain space). 6. DeFi service acts based on the AML check result Once the AML check result is available on the blockchain, the DeFi service automatically takes action based on its smart contract rules. If the user passes the AML check, the DeFi service proceeds with the transaction (deposit, withdrawal, swap, lending, staking, etc.). If the AML check fails or raises concerns, the DeFi service may halt the transaction or freeze the user’s funds. All of these steps occur as part of an atomic transaction In blockchain, an atomic transaction means that either all the steps in the process succeed or none of them do. This guarantees that no partial or inconsistent state is left, ensuring the integrity and security of the transaction. For example, if a user’s address appears on a sanctions list, the swap transaction would be automatically canceled by the blockchain’s rules – without any need for human intervention. This eliminates the risk of system failure or human error from a compliance officer. To sum up DeFi systems have the potential to integrate effective AML solutions. Achieving this goal will likely require time and effort. So far, oracles can be considered a universal technical solution for AML embodiment in DeFi. Lex Fisun is a CEO and co-founder at Global Ledger , a Swiss company providing cryptocurrency AML risk analysis, blockchain forensics and cybercrime investigation tools. Since 2015, Lex has worked in fintech, AI and anti-fraud tech companies, leading him to founding Global Ledger in 2019 in response to increased scrutiny of crypto regulations. Check Latest Headlines on HodlX Follow Us on Twitter Facebook Telegram Check out the Latest Industry Announcements Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Oracle Can Be a Go-To Solution for AML in DeFi – This Is How appeared first on The Daily Hodl .
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XRP’s 500% Rally Is Nothing Compared to THE OFFICIALMAGACOIN’s 50,000% Upside!
Is OFFICIALMAGACOIN the Next Big Crypto Opportunity? Bitcoin (BTC) and Ripple (XRP) have long been trusted by crypto investors, delivering consistent returns and shaping the market. Now, a new contender, THE OFFICIALMAGACOIN, is capturing the attention of BTC and XRP holders with its staggering 50,000% growth potential. With $1 million raised in minutes during its presale and unmatched momentum, OFFICIALMAGACOIN is becoming the most sought-after token, even as MATIC, ADA, SEI, and APT aim for their share of the spotlight. How It Stands Against the Competition Bitcoin (BTC): A proven store of value, but its mature market makes 50,000% returns unlikely. XRP: A leader in payments, but it doesn’t match the exclusivity and early-stage growth potential of this token. Polygon (MATIC): Known for scaling Ethereum, but it lacks the demand and momentum driving THE OFFICIALMAGACOIN. Cardano (ADA): Reliable for long-term growth, but it doesn’t have the explosive appeal of this rising star. Aptos (APT): A promising blockchain project, but it hasn’t captured investor excitement like THE OFFICIALMAGACOIN. Why Investors Are Flocking to THE OFFICIALMAGACOIN 1. Unparalleled Presale Success Raising $1 million within minutes of its presale launch, THE OFFICIALMAGACOIN has demonstrated extraordinary demand. This early success solidifies its position as a token poised for exponential growth. 2. Exclusive Availability for Early Adopters THE OFFICIALMAGACOIN is sold exclusively at OFFICIALMAGACOIN.COM . This exclusivity drives urgency among investors and ensures greater rewards for those who get in early. 3. Massive Growth Potential Analysts predict a 50,000% increase for THE OFFICIALMAGACOIN, making it one of the most exciting opportunities in the crypto market. Its momentum is drawing comparisons to BTC’s early days and XRP’s rapid adoption in cross-border payments. Don’t Wait—Secure Your Tokens Today Bitcoin and XRP investors are betting big on THE OFFICIALMAGACOIN, drawn by its record-breaking presale and massive growth potential. With exclusivity, strong momentum, and predictions of life-changing returns, this is your chance to get in early. Secure your tokens today, exclusively at OFFICIALMAGACOIN Website: officialmagacoin.com X/Twitter: https://x.com/officialMAGAx Continue Reading: XRP’s 500% Rally Is Nothing Compared to THE OFFICIALMAGACOIN’s 50,000% Upside! The Daily Hodl
Three Must-Have Crypto Assets for February: ETH, SOL, and RBLK
February is often seen as a particularly optimistic month for altcoins, acting as a pivotal moment that could determine the trend for the remainder of the year. Analysts predict strong turnarounds across the board, with Ethereum (ETH) and Solana (SOL) taking the lead. Meanwhile, the emerging Rollblock is capturing attention in the crypto gambling sphere and could soon become a focal point as thousands of investors hurry to secure their share in the trending RBLK presale. Rollblock Captivates with Its Passive Income Strategy The community-driven casino Rollblock is poised to shake up the $500 billion gambling sector with its innovative framework that links DeFi with online gambling. This initiative strives to provide a premium casino experience, bolstered by advanced security features enabled by blockchain technology. Rollblock guarantees that all bets remain unchangeable, with transactions recorded permanently and immutably, raising the bar for transparency and safety to new heights. The platform has undergone a full audit by SolidProof, holds a license from Anjouan Gambling, and adheres to the most recent gambling regulations. Over 45,000 players have joined Rollblock, enjoying access to 7,000 games that include everything from classic favorites like poker and roulette to exciting new AI-powered exclusives. The recent addition of sports betting has also led to a 600% increase in new sign-ups. A standout feature of the Rollblock ecosystem is its attractive revenue-sharing model. The casino plans to allocate up to 30% of its weekly earnings to buy back RBLK tokens from the open market. Of this, 60% will be burned, creating deflationary pressure that sets the stage for sustainable price increases. The remaining 40% is distributed to token holders as ongoing staking rewards, allowing them to benefit from scarcity-driven value growth. Ethereum Gathers Momentum as Buyers Return Ethereum is beginning to show signs of resurgence following a prolonged decline towards the $3,100 level. Currently priced at $3,200, Ethereum has seen a 2% increase within the day. The chart indicates Ethereum is navigating a bullish falling wedge pattern, with analysts forecasting a potential 35% rise should it break through the upper trendline. Traditionally, February has been Ethereum`s strongest month, averaging a 17% return, with a noteworthy 46.2% gain the previous year. On-chain data reveals bullish activity, with daily active addresses reaching a yearly peak of 588,000, and significant investors, including Trump`s World Liberty Financial, have substantially increased their Ethereum holdings. Exchange net flows point to buying pressure, and the Stochastic Oscillator suggests a possible reversal. If Ethereum overcomes the $4,000 resistance, it could accelerate and climb above $5,000 in the coming months. Solana Breaks Through Key Resistance Levels Currently, Solana (SOL) is trading at $240 after a 3.6% daily increase, reclaiming its position after dipping below the $230 support level. This recovery is matched by a 46% increase in trading volume, with over $6.3 billion in Solana transactions occurring across various platforms. The Cboe BZX Exchange has resubmitted Solana ETF applications for Bitwise, VanEck, and other major fund managers following the SEC`s earlier rejection in 2024. The change in regulatory leadership with the acting SEC has sparked optimism, as the pro-crypto approach contrasts with former Chair Gary Gensler`s restrictive policies. Polymarket bettors predict an 86% chance of Solana ETF approval by 2025, with JPMorgan analysts suggesting SOL ETFs could attract $3–6 billion in assets, potentially surpassing Ethereum ETFs. If Solana ETFs are introduced to the markets in 2025, analysts anticipate the influx of capital to push Solana above $300, possibly reaching $500 at the bull run`s peak. Explore the Rollblock Presale: A High-Potential Opportunity for 2025 Currently, RBLK is valued at just $0.052, with nearly $10 million already raised in the ongoing presale. As interest in GambleFi grows and listings on major exchanges are completed, there`s potential for a 100x increase by 2025, especially considering everything Rollblock has to offer. Discover the Exciting Opportunities of the Rollblock (RBLK) Presale Today! Website: https://presale.rollblock.io/ Socials: https://linktr.ee/rollblockcasino The Daily Hodl
