21 Analytics’ In-house Glossary

This blog provides a glossary of terms related to 21 Analytics’s Travel Rule solution, 21 Travel Rule. 

21 Travel Rule 

21 Travel Rule is 21 Analytics’ answer to Travel Rule compliance; it is a Travel Rule solution that is run on-premises.  

With 21 Travel Rule, VASPs can send and receive Travel Rule information to and from their counterparties securely, even when it is a first-time transaction with a new counterparty that hasn’t been contacted before. This is achieved with TRP, 21 Travel Rule’s primary protocol, and the Travel Address.   

Additionally, VASPs can verify self-hosted wallet ownership through technical means, such as a Satoshi Test or AOPP, both of which are fully automated.    

One of 21 Travel Rule’s most beneficial features is that nearly every process can be automated via API integration. 

What Does On-premises Mean? 

On-premises (on-prem) refers to software installed and operated on an organisation’s servers rather than being hosted by a third-party provider.

With an on-prem solution, your company manages and maintains the hardware, software, security, and data. This setup provides complete control and ownership of the system, making it a preferred choice for businesses handling sensitive information or requiring strict compliance with data protection regulations.

The Benefits of an On-premises Travel Rule Solution

On-prem solutions like 21 Travel Rule strengthen data security and privacy by keeping sensitive customer information on your own servers instead of relying on third-party storage, such as a SaaS Travel Rule provider. This reduces the risk of data breaches and supports compliance with regulations like the GDPR and DORA.

By storing data on your servers, VASPs maintain full control over security measures, data retention policies, and compliance processes. This ensures adherence to jurisdiction-specific requirements while eliminating the risks linked to cross-border data transfers.

What Is TRP?

The Travel Rule Protocol (TRP) is an open standard for exchanging Travel Rule-related data between VASPs in a decentralised manner. 

In other words, TRP can be described as a “language” that a Travel Rule solution uses. If your counterparty’s Travel Rule solution “speaks” the same language, the solutions will be able to communicate and exchange data.  

The Travel Address

The Travel Address is one of 21 Travel Rule’s many features to facilitate Travel Rule compliance processes for VASPs. The Travel Address assists VASPs in many ways, but the 2 most notable are with VASP auto-discovery and the fact that it works like a “crypto IBAN” identifying the entity and account holder. 

With VASP auto-discovery, VASPs can identify who their counterparty is before the transaction occurs, thereby complying 100% with regulations.  

Obtaining a Travel Address will not hinder your customer’s user experience; when your customer logs into their account, it is immediately visible. The only difference in your customers' user experience is that instead of sharing their wallet address, they now share their Travel Address when transacting. 

What Is AOPP? 

21 Analytics developed the Address Ownership Proof Protocol (AOPP) to prove self-hosted wallet ownership easily, quickly, and privately.

The AOPP Portal

With AOPP, wallet verification has been made even easier for wallet users and compliance teams. In the 21 Travel Rule software, the VASP’s customers can prove ownership with the easy-to-use AOPP Portal. In just a few clicks the proof is generated and submitted to the VASP compliance documentation.   

What Is an API?

API stands for Application Programming Interface. APIs define how applications interact with each other and which formats can be used to request and exchange information. They act as intermediaries, enabling the integration of different software systems, services, or platforms.

More simply put, an API is like a waiter at a restaurant. A customer places an order with the waiter, who submits this order to the chef. The chef cooks the meal, and the waiter brings the cooked meal to the customer.  

In the same way, an API acts as a messenger between different apps or systems. It takes a request from one system, gets the necessary data or action from another system, and then returns the result.

Now that you have a better understanding of 21 Travel Rule, why not contact us for a product demo?