NEM Foundation, a Singapore-based non-profit organization responsible for promoting the NEM (XEM) cryptocurrency and distributed ledger technology (DLT) project, has joined forces with TheVault, an artificial intelligence (AI) and blockchain-powered payments platform.
The partnership seeks to eradicate fraud in the cryptoassets ecosystem through its anti-fraud solution, according to a blog post on June 4, 2019.
NEM (XEM)Making Life Harder for “Cryptothieves”
In a bid to make it impossible for fraudsters to receive, send, or spend ill-gotten cryptocurrency, TheVault Lab Pte Ltd, a Singapore-based cybersecurity startup, has allied with the NEM Foundation to develop a blockchain-based anti-fraud system. The initiative will use a consensus network to fish out fraudulent cryptocurrency wallet addresses before a transaction takes place.
Dubbed NEM Vault, the team says the anti-fraud solution will be built upon a NEM-based private distributed ledger, that will leverage the stability and performance of Catapult.
Catapult is a highly-functional blockchain engine built to power both public and private networks with its smart contract plugins.
Per the team, the solution is aimed at making it impossible for hackers and other cybercriminals to use their ill-gotten digital assets.
Specifically, bitcoin trading venues, wallet owners, custodians, and other cryptocurrency market participants who wish to participate in the elimination of fraud in the cryptosphere are urged to “supply a combination of black, grey, and whitelisted crypto addresses to a decentralized database.”
Once a cryptocurrency transaction is set to take place, the solution will automatically check both the receiving and supplying addresses to ensure they have not been previously used in a fraudulent transaction.
This way, blacklisted crypto wallet addresses will not be able to participate in any form of a cryptocurrency transaction, be it sending, receiving, or making payments with blockchain-based digital assets.
Commenting on the solution, Dannie Francis, CEO of TheVault, stated that:
“It’s a simple solution, but very useful for cryptocurrency holders who want guaranteed certainty when withdrawing digital assets or making payments that their transaction will not be sent to the address of a bad actor.”
The team has hinted that the solution is currently in the first phase of rollout, with the complete version scheduled to go live in Q3 2019.
At a time when rogue actors have formulated various methods of stealing people’s cryptos, including the installation of clipboard-hijacking malware, the NEM Vault system may fix some of the problems facing the burgeoning virtual currency industry if all goes as planned.