protocols

Shyft Network

Shyft is building a blockchain-based ecosystem that allows for the secure and private sharing of data for industries, governments, and consumers. It is now building a commercial Travel Rule solution.its. Its centrally controlled blockchain grants decentralized identities for all parties, including VASPs and end-users. VASPS purchase SHFT tokens which allow them to create transactions on particular Travel Rule smart contracts on their proprietary blockchain.

This article covers factors to consider when choosing Shyft as a Travel Rule messaging protocol provider.

How does Shyft work?

Veriscope is a smart contract-mediated, decentralized platform and API suite that combines a decentralized protocol with a global onboarding and governance system for global VASPs (Virtual Asset Service Providers). Veriscope packages the Shyft Network public blockchain protocol, together with a smart contract suite called Shyft Network Core and an API middleware. Veriscope leverages the Shyft Network to enable a global discovery layer critical to the counterparty identification process as set out in the FATF guidance.

Is Shyft an open-sourced industry alliance network, a closed network, or a commercial solution?

Shyft is a closed network.

Is Shyft a fully integrated Travel Rule solution provider?

Shyft is a messaging protocol that seemingly plugs into the Veriscope end-to-end Travel Rule solution

What is the integration effort?

Integrating Shyft provokes significant changes to the front-end and the back-end.

What is Shyft’s governance model?

Shyft's governance model is currently unknown, it could be a Proof of Authority blockchain. There is no mention of POWs or POS.

Does Shyft support non-custodial wallets?

Shyft does not support communication with non-custodial wallets.

Is Shyft live?

Shyft aims to be live by the end of 2021.

What is the level of industry support for Shyft?

Shyft has:

  • Good response from Regulators
  • Some initial support from VASPs
  • One  commercial vendor (Veriscope)

What is Shyft’s membership fee structure?

Shyft’s business model includes selling tokens for gas on their blockchain.

Does Notabene support Shyft? 

Our product team has begun evaluating the costs and benefits of adding support for Shyft. We have heard from some VASPs who have regarded it somewhat challenging to utilize. Another source of concern is that it is built on a proprietary blockchain with a single vendor and requires VASPs to manage its native cryptocurrency.

What are the benefits of using Shyft?

Decentralization

  • Using smart contracts to manage Travel Rule transactions on a decentralized blockchain advantageous.

What are the drawbacks of using Shyft?

Closed network solution

  • After integration, VASPs are able to transmit customer PII to counterparties that are also in the Shyft Network. 

Complexity

  • As a more complex solution, Shyft may not be straightforward enough for easy use by compliance teams.

Not live yet

  • As of Q4 2021, the protocol is not live.

Has there been a testnet using Shyft?

Shyft protocol is not yet live; yet, significant testing has occurred. 

What are the steps to implementing Shyft?

Per Shyft’s documentation, VASPs must take four main steps to integrate:

  • Setting up your VASP account. Shyft calls these accounts Trust Anchors (TAs).
  • Creating Shyft accounts for users on your platform
  • Setting Attestations for crypto wallet addresses
  • Listening to network transactions

After all four of these functions are implemented, VASPs will be able to monitor and record originator and beneficiary information related to crypto transactions that occur between counterparties on the Shyft Network.

Shyft for Developers

Shyft Network is a public blockchain protocol designed to aggregate and embed trust and validation into data stored. Shyft is under semi-active development. Most development occurred in 2020 and has since stalled.

What are the specs?

The Shyft protocol supports the following:

  • Decentralized Identities for all parties, including VASPs and End-users
  • Supports all cryptocurrencies
  • Utilizes customized blockchain for Trust Framework
  • Requires SHFT tokens to use
  • Promised Support for InterVASP IVMS-101 Message Standard

Shyft Open API Documentation

Visit Shyft’s Github page.

Requesting changes on Shyft

As a closed network solution, all changes will be decided by and implemented by Shyft.

Relevant links:

GitHub | Shyft Network

Shyft | Shyft Network Whitepaper v. 4.1

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