SolidProof, a German-based audit and KYC business for the decentralized finance world, aims to focus on the audit of smart contracts. Ever since its launch, Defi has faced many problems, including fraud, scam, money launder etc. A recent statistic showed that by April 2021, crypto criminals had stolen over $432 million, with more than $240 being connected to Defi. Therefore, as crypto scams reduce, Defi scams are increasingly becoming a problem.
Many investors lost trust in the Defi industry because of fear of losing their money. Even the few that invest in Defi ought to be very cautious not to lose their funds.
SoldProof’s launch completely redefines the Defi industry, helping bring back the long lost trust. They do that by keenly looking into the Defi projects, smart contracts, coding, team and other necessary information, and advancing investors and developers on the best course of action to take.
Until now, SolidProof has been auditing the projects almost entirely manually. Frequently, this could take longer than usual to get the actual desired results. However, the network is planning to introduce an automated system for contract audits. How will autonomous systems help?
Fundamentally, the automation will help bring more efficiency, speed, convenience and reliability when handling the Defi smart contracts. Automation will bolster efficiency.
Their audit reports are detailed, highlighting every aspect of smart contract making and how they performed in their tests. It ranks projects as either low risk, medium risk or high-risk projects.
Furthermore, they post their report on social networking pages like Facebook, Twitter, Telegram and Instagram for every investor. The transparency in audit reports will help in building trust for the Defi world.
Another service offered is KYC analysis, which looks at KYC compliance and the possible risks a project may face. When doing KYC investigations, SolidProof will start by looking at the exposure Defi has from its customers.
At this point, SolidProof looks at all the customer data, especially on the transactions. This customer data is analyzed to see the types of transactions every customer completes. Afterwards, they explore the nature of the customer’s payments and receipts to see their legitimacy. Ultimately, they can determine any money laundering risks.
The platform will advise the Defi project on the best cause of action to take to protect their customers.
However, as a network, SolidProof will always ensure it protects all the collected data from the users. As mentioned earlier, the SolidProof network is based in Germany, and because of that, it follows the regulations of Germany.
One platform regulating the use of data by SolidProof is the DSGVO, which is described as a European data protection agency. Therefore, all private data collected will not be published, be it from audits or KYC.
Making Partnerships to Open Bigger Opportunities
Finally, the partnership that Solidproof made with Unicrypt is helping accelerate the adoption of the SolidProof network. For instance, SolidProof has recently worked on many Defi projects audits, most of which are launching their presales on the Unicrypt launchpad.
As more Defi projects launch on Unicrypt, SolidProof will benefit by getting more customers. Furthermore, the Unicrypt partnership is an excellent and fruitful way of sending the project public.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.