Cardano Launches CIP-0113 to Encode Compliance Rules On-Chain
(3 hours ago) · 1 source · Summarized by CryptoBipto
Cardano has introduced CIP-0113, a new on-chain standard designed to embed compliance rules directly into its blockchain infrastructure. The proposal aims to allow regulatory and compliance logic to be enforced at the protocol level rather than relying solely on off-chain processes. This represents a step toward making Cardano more compatible with institutional and regulatory requirements.
WHY IT MATTERS
Think of a blockchain like a public ledger that anyone can use. Normally, rules about who can use it and how — like verifying someone's identity or making sure a transaction follows the law — are handled outside the blockchain by companies or intermediaries. CIP-0113 is like writing those rules directly into the ledger itself, so they are automatically enforced every time someone makes a transaction. This matters because large financial institutions often cannot use a blockchain unless it has built-in compliance features. For someone new to crypto, this is an example of how blockchain projects are evolving to work alongside existing laws and regulations, which could affect how widely they are used in traditional finance.
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- newsbtc.com
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