The crypto world is about to get even more secure following the development of a new regulatory-compliance protocol, ASTRA. ATRA is a new protocol designed to improve the security of networks and transactions on blockchains and DeFi applications.
The loopholes in DeFi and other decentralized systems have allowed fraudsters and unscrupulous users to carry out scams on DeFi and made it difficult for disputes to be resolved. The need for a central regulator in decentralized systems, a kind of escrow service, has grown over time. ASTRA is the first regulatory protocol that increases trust by eliminating fraud, doubt, and making disputes easier to resolve.
What is ASTRA Protocol?
The safety of blockchain uses has been emphasized right from the early days. Further protocols to increase the safety of users on decentralized platforms have been the subject of research. Governments around the world have also said that they are going to regulate the industry; it works best if there are crypto-based regulatory protocols that the government can work with instead of imposing regulations that are based outside the industry.
This is what ASTRA is built to do; ensure regulatory compliance that won’t hurt crypto platforms and that will be acceptable by governments. This will bring the much-needed trust and certainty that the industry needs for explosive growth.
ASTRA protocols ensure that funds are not diverted from their original destinations, but that they arrive safe or are refunded if unresolved issues come up. The Proof-Of-Trust protocol increases the security of smart contracts and other DeFi projects. In addition, a legal assurance layer is written into the smart contract features to permit on-chain resolution without fourth-parties interference.
The need for on-chain dispute resolution will increase as cryptocurrency adoption increases, therefore a protocol that provides a working framework for it is welcome.
Cryptocurrencies Regulation In The US
Calls for cryptocurrencies regulations have increased in recent months. US officials have called for the industry to have some sorts of regulations given its huge market capitalization that has seen it outperform traditional stocks for years now. But the regulation of cryptocurrencies cannot go beyond certain limits due to the decentralized nature of blockchain protocols. The rise of ASTRA as a protocol for regulatory compliance provides adequate capabilities for blockchains to comply with future regulations.
The rise of cryptocurrencies increased during the intense period of the COVID-19 lockdown when traditional finance was unable to meet rising challenges. The resultant inflation and devaluation of funds pushed more people to seek safety in cryptos. The biggest cryptos e.g. Bitcoin, Ethereum, Solana, Tether, and ADA etc. have awarded the faith of investors this year with huge leaps in value.
The creation of DeFi applications have also increased since last year with more on the way before the year ends. And while all these are good news for the cryptocurrency industry, the issue of trust and safety must be put to rest once and for all before that mega growth can be triggered. Protocols like the ASTRA protocol are thus leading the challenge to ensure the safety of not just investors’ funds, but the traditional financial institutions which may be affected by negative crypto-related problems.