The new era of Privacy in Blockchain for the Financial Sector

In today's financial landscape, where privacy is an absolute imperative, most blockchain solutions fail to protect sensitive data between parties. While innovative, these solutions often lack the robustness needed to meet the demands of the financial market. It is in this context that Rayls emerges as a true game-changer, with an innovative approach that promises to revolutionize how privacy and liquidity intersect in the world of decentralized finance (DeFi).

In this article, we will dive into how Rayls is creating a UniFi’d ecosystem that combines the best of DeFi innovation with the depth of liquidity that the traditional financial market can offer. But that’s just the beginning: we will explore how Rayls has developed a unique privacy solution that not only preserves data integrity while ensuring a seamless and efficient integration between financial institutions. Get ready to discover how we are redefining privacy standards in blockchain without compromising performance or security.

How Rayls is Redefining Privacy with an Innovative Approach

When designing the Rayls ecosystem, we began with the premise that, eventually, every financial institution will require a private ledger as an essential component of their IT infrastructure, similar to databases and systems in general today. This ledger, accessible only to the institution itself, is intended not only for managing routine operations but also future functionalities like tokenization. From this principle, we developed an innovative privacy solution.

This solution stands in direct contrast to conventional methods, which often start with a public blockchain and later attempt to incorporate privacy mechanisms. These additions, in addition to being costly, degrade performance and impose computational limitations. By chosing a private configuration from the outset, the primary remaining challenge is  efficiently integrating private modules, to ensure that privacy does not compromise the system’s operability.

For this integration to happen, the concept of Subnet emerges, a permissioned environment that allows private ledgers to communicate and conduct asset exchanges. This environment is regulated by rules and audits defined by the governor of the subnet.  

Within this subnet, communication and asset exchange are facilitated by the 'Commit Chain,' a blockchain in which every participant can and should act as a validator, while the governor manages the chain's contracts. In this system, the respective relayers of each participant send encrypted messages, ensuring that information exchange takes place in a controlled and secure environment. Thus, any communication between two participants is consolidated at this single point, and through the Rayls protocol, each message is encrypted before being sent, ensuring that only the intended recipient can access it and is aware that the message was meant for them.

To illustrate this message exchange more clearly, let's consider an example:

1. Within a subnet with multiple institutions, participant A wishes to send a private message to participant B. This message could be an asset transfer, informational data, or a function call.  

2. Participant A publishes a transaction within their private ledger, indicating the recipient and the content of the message.  

3. A's relayer then encrypts this message so that only B can decipher it and recognize it was intended for them.  

4. Once encrypted, the message is sent to the Commit Chain, where B's relayer identifies and decrypts it into B's private ledger for proper processing.

In conclusion, it's evident that Rayls is the only solution that comprehends the importance of each institution having its own dedicated ledger, structuring the ecosystem around this core principle. Our protocol was built from the beginning with a strong emphasison privacy within a permissioned environment, providing high performance and security to all participants. I look forward to sharing more about our protocol in an upcoming article.

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