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Open Bank Project and API3 partner to unite banking and the blockchain

Open Bank Project (OBP) has formed a partnership with the API3 Foundation to deliver banking and open banking data oracles to the decentralised web.

The decentralised web (Web 3.0) promises deliver the next generation of internet applications and services using blockchain infrastructure.

However, the concept has what is known as the “oracle problem”, i.e. the difficulty in connecting to trusted sources of “off-chain” Web 2.0 data.

The API3 Foundation has developed oracle middleware, which OBP will use to enable blockchain developers to call over 400 of its banking and management APIs.

This, say the partners, will allow the blockchain ecosystem to create crypto-banking solutions, while banks can provide data feeds directly to blockchain networks.

Heikki Vänttinen, API3 , says: "API3 is incredibly excited to see the blockchain industry begin to merge with open banking, and we can’t wait to see the innovative solutions that will grow out of this.

"We hope this newfound connectivity between the two will build a foundation for the future of a digital banking experience inclusive of blockchain-enabled systems like DeFi."

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Editorial | what does this mean?

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Comments: (2)

Andrew Smith - RTGS & ClearBank - London 20 April, 2021, 09:52

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Data on blockchain networks needs to be looked at, since the blockchain network can be accessed by various actors - this means sensitive information cannot be stored there - especially anything that could be used to identify a person/account.

The future of digital banking experience needs to have the customer at the centre and in-control of everything they are doing - not a decentralized web of access....

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Dylan Thiam - TESOBE / Open Bank Project - Berlin 22 April, 2021, 14:30

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Hi Andrew - great point. What you describe is very much true for public and permissionless networks, but there are many different ways to implement blockchain technology for open banking. One of these is to use permissioned network structures that do not expose data to third parties outside of the entities approved to handle said private information. Generally, what could be called "enterprise blockchain" utilization happens in these types of environments, that can then potentially be bridged to more permissionless networks in a manner which does not degrade data security. There is also a lot of progress happening in the area of privacy-specific solutions, like zero-knowledge proofs, that could be applied to provide more privacy even in permissionless environments. Thank you for your comment!