HackenProof had the opportunity to interview with the Swisstronik team. During this interview, we asked the most interesting questions that will help white hats understand the key features and functionality of the Swisstronik project.
What is Swisstronik and what problem does it solve?
As you know the regulation is tightening for Web3 and crypto space. Most Web3 product builders find it hard and costly to keep up with the ever-changing, fragmented crypto regulations. Moreover, they’re forced to choose between user privacy & decentralization and compliance requested by the regulation authorities.
App users also have a hard choice to make. They have to either rely on centralized parties and risk their personal data while passing identity checks; Or stay in the gray area of the crypto industry, filled with fraudsters and numerous risks.
Swisstronik provides a set of decentralized & chain-agnostic tools to address these issues.
Swisstronik is an identity-based Layer 1 solution that empowers Web3 developers to build regulatory-compliant yet privacy-preserving dApps with minimal coding efforts and zero legal expertise. It helps Web3 startups sustainably grow their business and attract more users (including from outside of the crypto community) by making their products and operations regulatory compliant without compromising user privacy and decentralization. They can either develop dApps on top of the Swisstronik blockchain or integrate our ready-to-use modules to boost compliance with their own dApps & tokens. This can be done easily since Swisstronik services are designed to be chain-agnostic.
How is Swisstronik different from other Layer 1 solutions?
First, Swisstronik introduces 2 levels of privacy and security through Intel SGX technology and ZK-SNARKs. The former is a hardware-based security enclave that ensures transaction privacy at all times, while the latter can be used optionally to provide extra protection for user data during KYC checks and in other situations. Sensitive data remains confidential, bolstering trust in our ecosystem.
Second, Swisstronik blockchain is identity-based. Our decentralized identity (DID) module lets Swisstronik-based dApps remain regulatory compliant at all times while protecting user privacy during KYC, AML, and other checks.
Additionally, we combine the robust Cosmos SDK framework with the Ethereum Virtual Machine (EVM) compatibility. This strategic integration provides developers with the best of both worlds: the familiarity and versatility of the EVM and the scalability and interoperability of Cosmos.
How does Swisstronik tackle the challenges of regulatory compliance and user privacy?
Swisstronik adopts a multifaceted approach to address these challenges. Firstly, it offers on-chain KYC, AML, and DPR solutions, where user verifications are run by a decentralized network of data verifiers secured by top-notch data protection methods that we talk about below. This enables developers to integrate identity verification and compliance checks directly into their dApps. It also streamlines the compliance process and ensures adherence to evolving regulatory standards. Secondly, Swisstronik leverages Intel SGX technology to create secure enclaves for executing smart contracts. This hardware-based security adds an additional layer of privacy by encrypting sensitive transaction data. Furthermore, Swisstronik incorporates Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge (zk-SNARKs) to provide cryptographic proof mechanisms that enhance user privacy. Together, these technologies establish Swisstronik as a robust platform that not only facilitates compliance but also safeguards user data.
What resources and support does Swisstronik offer to make developers’ lives easier?
First, our solutions are built in a way that makes them easy to integrate and use across different networks. For example, SwisstronikJS library makes it fast and easy to create privacy-preserving dApps on Swisstronik. Our decentralized identities (DID) module will be chain-agnostic, and contain developer-friendly APIs, and other perks for quick integration. Our ZK-tokens will also be an easy but efficient remedy for making your tokens compliant with local regulations without actually having to issue new tokens. Same with other solutions: minimizing the production time and taking the legal burden off the builders is what we strive for.
Also, we’re committed to providing thorough documentation, user-friendly video tutorials, and other educational resources that would be easy to understand even for the newbies. We also provide regular tech updates on Discord and Twitter. These combined efforts make Swisstronik a great choice for developers who seek to build a compliant, privacy-preserving product fast – or quickly make an existing product compliant with local regulations.
What is the current stage of the Swisstronik project, and what features are available on the testnet?
Swisstronik is currently in its testnet phase, the first Testnet includes the blockchain itself, without the Identity module and only with 1 data security level out of the two planned.
Testnet 1.0 functionality offers robust encryption and safe execution through the utilization of Intel SGX technology, ensuring the privacy and security of all interactions within the network. This means that all transactions and queries conducted within Swisstronik’s testnet are encrypted, safeguarding the privacy and integrity of data during network interactions. Intel SGX is the first data security level out of the two planned: In the later versions, we’ll also add ZK-SNARKs. This is especially important when processing KYC and other personal data of the users.
Swisstronik Testnet is also fully compatible with the Ethereum Virtual Machine (EVM). It allows developers to seamlessly migrate their Ethereum-based applications and smart contracts to the Swisstronik ecosystem. In later versions, it’ll also be connected to the Cosmos network through the Inter-Blockchain Communication (IBC) protocol.
Stay tuned for exciting developments as we work towards enhancing the blockchain ecosystem.
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