Blockchain technology has long been touted as a secure and transparent way of conducting transactions. However, one major issue has hindered its widespread adoption: the need for user identification in order to comply with regulations.
At Consensus Miami, representatives from Moody's and ChangeNOW explained how this conflict can be resolved through the use of hybrid architectures. This approach involves separating tasks between different layers of the system, allowing for both public and closed networks to coexist.
The traditional method of participant identification, such as KYC (Know Your Customer) checks, is not suitable for blockchain due to its emphasis on anonymity. However, by tracking transactions at the wallet address level, companies can monitor activity without linking it to a specific individual.