June 12, 2023
Welcome to Amberdata's Podcast series featuring leaders in the Crypto space where we go in-depth and dive into various topics.
In this episode, Chris Martin, Amberdata's Principal Analytics Engineer, interviews Soups Ranjan, Co-Founder and CEO at Sardine.
Disclaimer: This podcast is for educational purposes only. Nothing here is trading advice or solicitation.
Soups Ranjan joins Amberdata's Principal Analytics Engineer Chris Martin to discuss the history and founding of Sardine, how FinTech uses fraud programs to combat attackers and improve user experiences, and how to avoid scams in the crypto space.
Sardine enables companies to improve risk management with fraud detection, compliance within financial services, and instant settlement for crypto and NFT transactions. Previously, Soups was the Co-Founder of Risk Salon, a broad risk-space think tank; Head of Crypto at Revolut; and the Director of Data Science and Risk at Coinbase.
Intro
In this interview, the CEO of Sardine, a player in the cryptocurrency security space, shared insights into the evolving landscape of crypto wallet security and the potential role of decentralized identity (DID) in fraud prevention. The conversation touched upon the aftermath of the FTX debacle, the surge in decentralized wallet adoption, Sardine's on-ramp business, and their vision for the future of crypto payments.
FTX Debacle
The interview commenced by addressing the aftermath of the FTX incident, wherein users were reminded of the importance of the "not your keys, not your crypto" paradigm. This incident triggered a notable uptick in decentralized wallet sign-ups, as users sought to regain control over their crypto assets. Sardine's crypto on-ramp service gained prominence during this period, enabling users to directly purchase cryptocurrencies within their wallets. This seamless integration of purchasing capabilities within wallets marked a significant step towards realizing the primary vision of cryptocurrency - the self-custody of assets.
Decentralized Identity
The discussion then shifted toward decentralized identity, a concept that has intrigued the blockchain community. The representative acknowledged that while the potential of DID is compelling, practical implementation faces challenges. These challenges include reluctance to share verified identities among competitors and obtaining user consent for sharing identity data. Despite the enthusiasm around DID, its widespread adoption remains uncertain.
Sardine's Vision
Looking ahead, Sardine's vision revolves around reducing payment costs by automating fraud and compliance processes, nearly eliminating these costs. As new payment methods akin to cryptocurrencies emerge, faster transactions bring forth faster fraud. Sardine intends to address these challenges by developing innovative solutions. Their upcoming plans include creating an API version of their on-ramp service and enhancing flexibility and customization.
Privacy and Security
The conversation delved into an often-overlooked topic in the crypto community - the delicate balance between privacy and security. The representative emphasized the need for a nuanced conversation surrounding privacy and security trade-offs. They illustrated this with instances where users unwittingly granted permissions to malicious smart contracts, leading to chargebacks. The solution they proposed involves behavior biometrics, such as Sardine's SDK, which respects privacy while enhancing security by analyzing user behaviors without accessing sensitive data.
Trust Building in DeFi
In conclusion, the interview with Sardine's representative shed light on crucial aspects of crypto wallet security and the potential role of decentralized identity. The FTX incident's repercussions underscored the importance of user-controlled crypto custody, prompting a surge in decentralized wallet adoption. Sardine's on-ramp service capitalizes on this shift, enabling users to purchase cryptocurrencies directly within their wallets.
The conversation also touched on the prospects of decentralized identity, highlighting the existing challenges in its implementation. The representative acknowledged the significance of DID but cautioned about the complexity of bringing it into practice within the competitive landscape.
Automating Fraud and Compliance Processes
Sardine's forward-looking vision aims to revolutionize crypto payments by automating fraud and compliance processes, ultimately reducing costs. They intend to address the emerging challenge of fraud in faster payment methods by developing innovative solutions. The upcoming API version of their on-ramp service exemplifies their commitment to enhancing user experience and customization.
Lastly, the interview shed light on the critical discussion of striking the right balance between privacy and security. The representative's insights underscored the need for privacy-aware solutions, such as behavior biometrics, to mitigate fraud without compromising user privacy.
In the ever-evolving landscape of crypto wallet security, Sardine's insights and innovative approaches provide a glimpse into the future where users can confidently secure their assets while enjoying seamless transactions within decentralized ecosystems.
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