What is Astra Protocol and How does it Work?

In the large ecosystem of decentralized finance, or DeFi, the Astra Protocol stands out as a bright new star. Its goal is not just to change the way financial services are done, but also to fix the problems that are at the heart of this innovative industry. Due to the fast growth of DeFi, many problems have come up, such as rug pulls, scams, and illegal finance. The Astra Protocol aims to tackle these issues head-on.

At its core, Astra Protocol is the first decentralized compliance layer. Its purpose is to help DeFi platforms achieve compliance and protect customers in a way that respects decentralization and privacy. It acts as a bridge between the innovative world of cryptocurrencies and the regulatory world. It adds trust to the blockchain industry as a whole, which has been missing until now.

History of Astra Protocol, Origins, and Key Persons

The Astra team is a blend of experienced professionals from the blockchain, legal, and financial sectors, and several members have advised governments on their blockchain strategies for the post-pandemic world. The team has partnered with IBM to introduce Astra for use on public blockchains, especially focusing on bringing compliance to the world of Decentralized Finance (DeFi).

The founding team comprises Damien O’Brien, Jez Noah Ali, and Arthur Ali. Damien O’Brien, a successful Irish entrepreneur, brings his experience developing commercial relationships and raising significant growth capital. Jez Noah Ali and Arthur Ali are private equity investors with a joint portfolio of over 80 patents in the technology space, including Astra’s patented protocol. The team also has a list of executive advisors, including Phil Hogan, former EU commissioner for trade, who brings his experience in international trade and relations. Sir Robin Jacob, a former senior patent judge in the UK, brings his expertise in IP judicial matters. Other advisors include Richard Doherty, Brian O’Dwyer, Mick Mulvaney, and Kirstjen Nielsen, each offering valuable insights and guidance in their respective fields.

Sakhib Waseem (Chief Innovation Officer), Adam Ali (Chief Compliance Officer), and Johan van den Arend Schmidt (Chief Technical Architect) all hold significant positions in the business. Each brings substantial industry experience and expertise to their roles in driving innovation, managing risk and compliance, and leading on the technology built out of the company. The Astra team aims to leverage its patented technology to bring about groundbreaking changes in the way businesses operate, particularly in the area of dispute resolution.

How does ASTRA Work?

Source: Astra Protocol WP

Astra Protocol utilizes its native token, ASTRA, to facilitate its services. When platforms utilize the Astra token, they can validate users, ensuring they engage in honest and legal financial activities. In doing so, Astra Protocol manages to keep out harmful or illicit finance, while providing on-chain proof that bolsters the growth of the entire ecosystem.

Central to Astra Protocol’s operation is the Decentralized Legal Network (DLN). This globally patented technology enables DeFi platforms to KYC their users from over 155 countries. DLN connects users to major business, legal, and compliance firms globally in a transparent and fair manner, which is more cost-effective and fairer than centralized solutions.

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Astra is a utility token with a fixed supply of 1 billion tokens. It operates on a scarcity model, where applications can purchase Astra tokens on the secondary market. This activity generates buy pressure on the token. Decentralized applications (Dapps) can then place these tokens in a fixed-term lock-up of 1, 3, 9, or 12 months with specific return percentages, which reduces the sell pressure and downward volatility of the token.

The tokens are utilized when Dapps use Astra’s KYC (Know Your Customer) or KYB (Know Your Business) services. The cost of these services is calculated by comparing the market price of Astra tokens to the dollar cost of KYC or KYB. Once used, the tokens are moved from the Dapp lockup to the Astra lockup, and delegate token rewards are distributed.

Astra’s model provides benefits to Dapps such as a lower average cost of KYC compared to SAAS (Software as a Service), and an efficient way to handle Dapp requests based on lockup positions. The token ecosystem also includes a burn reward system that encourages growth.

Source: Astra Protocol Documentation

Main Features of Astra Protocol

Astra Protocol stands out for its various products, each aimed at resolving unique challenges in the DeFi space. Its fundamental offering is a compliance solution that assists DeFi protocols to adhere to privacy and financial regulations without compromising decentralization. These include vital regulatory checks such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

Ecosystem

Source: Astra Protocol Documentation

Decentralized Compliance Layer

Source: Astra Protocol Documentation

The first standout feature of the Astra Protocol is its decentralized compliance layer. Astra helps DeFi products achieve regulatory compliance effortlessly. It introduces an extra layer of security into the current Web3 infrastructure, stimulating the adoption of decentralized finance.

KYC/KYB & Enhanced Vetting

• Utilizes Web3 data to conduct comprehensive Know Your Customer (KYC) and Know Your Business (KYB) checks, ensuring the authenticity of the users and businesses involved.
• Incorporates Web2 fraud screening methodologies, providing an extra layer of security against fraudulent activities.
• Cross-references users against international anti-terrorism watchlists, aligning with global security efforts.
• Adheres to Financial Action Task Force (FATF) standards, ensuring international compliance in its operations.

Anti-Money Laundering (AML)

• Employs Web3 data in its anti-money laundering efforts to track and monitor all transactions within the network.
• Leverages Web2 fraud screening mechanisms to deter and detect potential money laundering activities.
• Cross-checks all transactions against anti-terrorism watchlists, contributing to the global fight against financial terrorism.
• Strictly conforms to FATF standards, maintaining robust and comprehensive anti-money laundering measures.

On-Chain Disputes

• Uses a contractual pre-agreement to establish Astra as the designated dispute resolution platform before any transaction, ensuring clarity and trust.
• Assigns a legal jurisdiction for each agreement, providing a clear framework for dispute resolution.
• Engages delegates from major accredited law firms for dispute resolution, guaranteeing a high degree of professionalism and expertise.
• Delivers binary outcomes for all disputes, providing clear, definitive resolutions.

Reporting

• Offers a web-based analytical platform, allowing users to track, analyze, and manage their transactions seamlessly.
• Supports exportable reporting, enabling users to generate comprehensive reports for detailed examination.
• Features a customizable dashboard, enhancing the user experience with a tailored interface to monitor their activities and transactions.

Decentralized Legal Network (DLN)

Astra’s DLN brings together legal and financial experts from major firms worldwide. By facilitating on-chain dispute resolution, it adds another layer of security and trust to the DeFi ecosystem. DLN is instrumental in helping prevent loan defaults and violations of loan terms.

Is ASTRA a Good Investment?

Source: Astra Protocol Documentation

Determining whether ASTRA is a suitable investment for you depends on your individual situation and tolerance for risk. Cryptocurrencies are known for being high-risk assets, and it is recommended that you conduct your own research and assess the amount of risk you are comfortable with before investing. It is essential to avoid investing money that you cannot afford to lose.

Astra Protocol Adoption Partners

Astra Protocol has joined forces with several well-known groups to get more people to use their platforms and make them safer and easier to use. Tokensoft, a well-known leader in token sales and blockchain projects, is one of these partners. Tokensoft has helped many projects raise money successfully, including well-known Web3 projects like Hedera Hashgraph and Synthetix. Through their partnership with Astra Protocol, Tokensoft wants to add Astra’s compliance layer to their Launchpad platforms. This would provide decentralized Know Your Customer (KYC) services while keeping privacy and anonymity, which are important in the crypto and blockchain industries.

Credefi is another partner of Astra Protocol. Credefi is a platform that brings together crypto lenders and small and medium-sized business (SME) borrowers in the real world. Credefi helps both DeFi and traditional finance deal with problems by giving loans to portfolios of businesses that are both decentralized and secured. The decentralized KYC service from Astra will help Credefi build trust and openness in the lending and borrowing process. This will ensure that SMEs and creditworthy borrowers in the DeFi ecosystem have access to reliable lending sources.

Astra Protocol has also joined forces with Menthol Protocol, which is the first multi-chain decentralized ecosystem for sustainability. Menthol Protocol automates the move to a climate-positive Web3 and gives users, dApps, and blockchains the tools they need to make their sustainability processes more efficient. The partnership between Astra and Menthol Protocol will allow users to sign up securely while keeping their anonymity and privacy. This will improve security and accountability in the sustainable ecosystem project.

Astra Protocol has joined forces with Ink Finance, a financial governance protocol for decentralized autonomous organizations (DAOs), to improve security and protect investors. Ink Finance offers high-tech tools for building trust and keeping track of assets across multiple blockchains. Astra’s decentralized KYC service will help Ink Finance’s ecosystem by improving due diligence and ensuring that DeFi investors, fundraisers, real-world fintech, and crypto asset managers can talk to each other safely.

How can you own ASTRA?

Going through a centralized cryptocurrency exchange is one approach to acquiring ASTRA. The first step is to create a Gate.io account and complete the KYC process. Once you have deposited money into your account, follow the instructions to purchase ASTRA on the spot or futures market.

News on Astra Protocol

The journey of Astra, since its inception, is studded with numerous milestones and remarkable achievements. Let’s recap the highlights and shed light on the exciting future endeavors.

2022 Recap

In the first quarter, the launch of the Astra Protocol compliance hub in the Sandbox Metaverse made waves in the industry, and Astra successfully closed an oversubscribed fundraising round. The team attended various global summits, presenting the innovative work they’ve been doing.

The second quarter continued to see Astra Protocol’s prominence grow, with high-profile onboarding, such as Mick Mulvaney and Kirstjen Nielsen, joining as Strategic Advisors. Astra was consistently highlighted in media outlets like Bloomberg, Coindesk, and the Wall Street Journal for pioneering work in integrating compliance into crypto.

In the third quarter, Astra strengthened its alliances with global legal experts and regulatory departments. Crucial partnerships with developers like Limechain, Concise Software, and audit firm KPMG were formed. The Astra Ambassador Program, Astranaut, was also launched during this period.

Wrapping up the year, the fourth quarter marked the successful sale of the $ASTRA Token, with the Astra team furthering its safety awareness campaign in the Web3 space

2023 Recap

The beginning of 2023 witnessed Astra achieving a high score of 9.8 on Smart Contract Audit by Hacken. Significant strides were made in growing Astra’s Strategic Board of Advisors with the addition of members like Lord McNicol.

In February, Young Sohn, Former SAMSUNG Corporate President & Chief Strategy Officer, came on board as a Strategic Advisor. The Astra technology team continued to push boundaries in product development, with their progress shared in the form of regular Astra Development Updates.

In April, Astra launched a Weekly Trivia contest and an official Sticker collection for its community. Astra was also featured on NASDAQ, with discussions about the need for cryptocurrency regulation becoming prominent.

In May, Astra received high praise from its Advisors, continued to push the boundaries of DeFi’s future, revolutionized crypto regulation, and featured on CRYPTO101 Podcasts. Additionally, Astra’s influence extended to the NFT space with its Decentralized Compliance Solution.

What’s Next?

As Astra moves forward, it continues to build on its mission to create a safer Web3 and DeFi space, while also preparing for incoming global regulations in the crypto/blockchain area. Astra is committed to working with other Web3 projects and global regulatory bodies to ensure the crypto industry evolves securely and compliantly. The future will see Astra balance security with user privacy and continue to make strides in revolutionizing the crypto regulation landscape.

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