Parallel Markets, a newly founded startup with $1.4 million capital has collaborated with the Chainlink network to develop the first portable investor identity solution for blockchain.
Verification of the identities of investors under a stringent blockchain-based platform is necessary for building infrastructure in the financial services industry. Parallel Markets will be utilizing its tool called Passport for verifying the accredited users.
Parallel’s Solution to investor Identity
Unlike the older time-consuming process of accreditation and validation, which involved loads of documentation, the traders are now facilitated with just a one-time button click process for verification to share their information. The Parallel Markets has built the investor identity solution called Passport, which is functional across multiple platforms and is now available to the Chainlink users.
Chainlink Platform connects the smart contracts on the blockchain and real-world, off-chain applications. Chainlink searches and verifies the real-world data and integrates it with smart contracts. Internally, the Passport will pass the accreditation status further to Chainlink nodes via the Oracle contract to assert it.
CEO and Co-founder Tony Peccatiello of Parallel Markets said:
We believe that identity is still a huge problem and is one of the biggest points of friction to the widespread adoption of online investing in private assets.
Our collaboration with Chainlink is the initial step in working together to make high value, private market transactions readily accessible for everyday investors. Chainlink is in the process of building open standards and we are excited to incorporate our solution within that framework.
Why accreditation is essential?
Distributed ledger technology (DLT) enables to store data in a decentralized manner through blockchain-based applications. DLT assures to bring liquidity to conventional illiquid private assets and make it accessible for everyone within the network. The verified and authenticated identity of the customers is very essential in the financial services sector.
How it will work?
Earlier in September, CTO Brian Muller said that as there is an unexpressed demand for the ability to sell and purchase the private stock, they are trying to collaborate with issuers to support that liquidity in a structured manner on their platform.
The collaboration will accredit the users to get verified through parallel markets and then confirmed via Chainlink. The recognition will benefit both the companies and the individuals in the finance and technology industries for more efficient and trustworthy transactions.
Chainlink is the Oracle network, which provides end to end tamperproof input and outputs for smart contracts on any blockchain.