The two crypto giants are working on a platform called the CryptoSafe Alliance
Binance, the world’s largest cryptocurrency exchange, has entered into a partnership with Oasis Labs, a privacy-centric blockchain-powered cloud computing company, in the fight against fraud within the crypto sector.
Yesterday, Oasis was announced to be the inaugural member as well as a primary infrastructure provider for the CryptoSafe Alliance, which is led by Binance.
Oasis Labs’ proprietary smart contracts will be used in building the decentralised CryptoSafe Platform, which is designed to share threat intelligence data between crypto exchanges. The CryptoSafe Platform will be powered by the Oasis Network blockchain.
The two companies highlighted the need for the CryptoSafe platform to allow collaborative fraud detection, while simultaneously ensuring that the data of participating exchanges is kept confidential and private.
The platform will prioritise the facilitation of private intelligence sharing before it will develop capabilities that would allow it to offer “real-time fraud analysis to fight cryptocurrency hacks, theft, and laundering”.
Changpeng Zhao, the Chief Executive Officer of Binance, has urged representatives from the crypto industry to join the CryptoSafe alliance, emphasising the need for a collective effort to provide greater security in the community.
“A collective effort and forging closer ties amongst members will better ensure the security of the global cryptocurrency community and the broader ecosystem’s integrity to achieve this common mission,” he said.
During its launch, the platform will allow exchanges to share intelligence regarding transactions processed on the Bitcoin (BTC), Ethereum (ETH), Tron (TRX) and Eos (EOS) blockchains. The developers are also working on plans that will allow the platform to support additional networks by the end of the year.
Cryptocurrency-related fraud has become a serious issue, particularly in the midst of the coronavirus pandemic. Many fraudsters have taken to social media platforms to lure people into investing in health websites that claim to provide top secret information on COVID-19, or placebos that are touted as the cure to the coronavirus.
In addition, social media platforms have been challenged by several high profile crypto celebrities to update their ad policies, as cryptocurrency scam advertisements are known to proliferate for days on popular platforms such as YoutTube and Google despite the supervision.
The Chief Executive Officer of Ripple, Brad Garlinghouse, filed a lawsuit against YouTube in April of this year for allowing ads that impersonated him to spread on the video-sharing platform.
Netizens are urged to practise vigilance when investing in advertisements online, particularly with the ones related to cryptocurrencies.