TLaaS (LEX) — Oracle & KYC Integration: Off-Chain Data Verification Patterns

1. Purpose

Oracle and KYC integration in TLaaS (LEX) enables the secure validation of off-chain data—such as identity documents, compliance checks, and market prices—while ensuring on-chain license transactions remain trustworthy. This module coordinates with TLAAS (DLA) for license validation and DAL for dispute resolution when off-chain data is contested.

2. Why Use Oracles?

• Provide trusted external data for compliance workflows.
• Enable real-time market price feeds for fee calculations.
• Integrate KYC/AML checks before license issuance or renewal.
• Facilitate automated regulatory reporting.

3. KYC Integration Flow

1. User Submission — License applicant submits identity documents via secure off-chain portal.
2. Verification — Third-party KYC provider verifies documents and returns status.
3. Oracle Transmission — KYC result transmitted to the TLaaS smart contract through an oracle.
4. On-Chain Status Update — License eligibility updated based on verification result.

4. Oracle Architecture

• Data Source — Trusted KYC providers, compliance APIs, or price feeds.
• Oracle Network — Decentralized (e.g., Chainlink) or custom CHLOM oracle.
• Smart Contract Interface — Functions to request and receive data.

5. Solidity Example for KYC Status Update

interface IKYCOracle {
    function requestKYC(address user) external returns (bytes32 requestId);
    function getKYCStatus(address user) external view returns (bool);
}

contract LicenseRegistry {
    mapping(address => bool) public kycApproved;

    function updateKYCStatus(address user, bool approved) external {
        // Only callable by oracle
        kycApproved[user] = approved;
        emit KYCStatusUpdated(user, approved);
    }

    event KYCStatusUpdated(address indexed user, bool approved);
}

6. Security Considerations

• Data Authenticity: Use signed data from verified providers.
• Privacy Compliance: Align with GDPR/CCPA for identity data handling.
• Fallback Mechanisms: Define rules for when oracle data is delayed or unavailable.

7. Interoperability

• TLaaS (LEX): Uses oracle-fed KYC data for license issuance and renewal.
• TLAAS (DLA): Verifies compliance requirements using oracle data.
• DAL: Arbitrates disputes over KYC status or compliance results.

8. Benefits

• Increases trust in marketplace transactions.
• Automates compliance without manual intervention.
• Reduces fraud by linking licenses to verified identities.
• Enables cross-border regulatory alignment.

Next Article: REST/GraphQL APIs for TLaaS — Querying License Status and Metadata