Five problems the Astra Solution helps solve in DeFi.
Decentralized Finance (DeFi) has a bright future but is still struggling to overcome significant hurdles.
Without solving these challenges, DeFi cannot make its grand entrance into mainstream adoption. The crypto ecosystem will be forced to solve these issues to win over the trust of the masses.
While there are still different challenges in DeFi, we at Astra continue to fight for those surrounding regulations, compliance, and general safety when operating in the DeFi space. Trust is crucial when working in financial areas; without trust, there is no future.
With the Astra Solution, we help DeFi platforms solve some of the most common and most extensive problems in DeFi. The Astra Solution is a versatile technology package that will help with many regulatory issues, not just one or two.
To give some in-depth insight into the Astra Solution, here are five DeFi problems that it helps solve.
Astra helps secure regulatory compliance in DeFi.
The first major problem in DeFi is the lack of regulatory compliance, and one of the cornerstones of the Astra Protocol is to help apply incoming laws without compromising the decentralized nature of DeFi protocols.
It’s offered in the all-in-one Astra package that platforms can adopt and use via API connections, providing direct utility through smart contract technology.
Adding a decentralized compliance layer to DeFi is just one of many things that the Astra Solution does, but one of the most essential. It’s a big part of Astra’s vision to help platforms in the right way, as DeFi continues to scream for the proper compliance before it can develop even further as an industry.
Fight scammers and DeFi fraud with Astra.
A prominent reason why some people are skeptical about DeFi is that scammers and frauds have raided the space for a long time.
With the Astra Solution, platforms can start to fight fraudulent behavior effectively through our know-your-customer process. This process is built to verify users that sign up to a platform and thus help prevent anonymous actors right from the start.
KYC processes are commonly used in Web3, but it’s still something there is a considerable lack of in DeFi. Without good KYC, people will continue to act entirely anonymously, and people with ill intentions will have many opportunities to disrupt the system.
You can read more about how Astra actively uses KYC technology to the user’s advantage here.
Astra helps implement the travel rule
Another part of the Astra Solution that helps create trust among active DeFi users is our help implementing the crypto travel rule.
The travel rule is essentially a procedure that makes crypto transactions safer by ensuring that the transaction’s sender and receiver are identifiable. This information helps create trust in DeFi, especially in high-value transactions involving a lot of money.
The travel rule is another tool to help create a trust-worthy foundation in DeFi that actors with a lot of money will trust to use. It also ensures that casual traders in DeFi will have a safer time when trading with hard-earned money.
Learn more about the travel rule and how Astra helps implement it in DeFi right here.
Legal insurance is lacking in DeFi, but Astra helps bring it.
Insurance is crucial when trading in a decentralized space to minimize the impact if something goes wrong. The same goes for technology that can help solve disputes, as the daily number of trades happening in DeFi is only increasing.
Platforms and individuals will get the right legal insurance through the Astra Solution as we provide legal assistance with our Decentralized Legal Network (DLN). The DNL consists of global experts from legal and auditing firms, providing unrivalled skills and expertise.
Furthermore, our technology automatically helps solve disputes quickly and smoothly. Not only will it help solve disputes rapidly, but also in a just and responsible way.
Minimize money laundering through Astra’s stable AML.
The DeFi and crypto space have been a good place for money laundering, as the industry is still very new and unregulated. It has been a place where people infuse illegal money and make them clean through anonymity and a lack of safety protocols.
These incentives to criminals will end with the Astra Solution, which includes anti-money laundering technology to apply extra control. This technology will help platforms detect potential money launderers and avoid having them work through their DeFi platform.
To learn more about the Astra Solution and the wide variety of problems that it solves, make sure to check out our Medium, where we dive deeper into our technology.
A Decentralized Compliance Layer for the Web3 Economy and Delivering the Compliant Blockchain for the future. 💪