IOTA Web3 ID Solution Chosen for European Blockchain Sandbox
TL;DR:
The Web3 Identification Solution built by the IOTA Foundation, walt.id, IDnow, Bloom Wallet, and HAVN, has been selected for this year’s European Blockchain Sandbox. The solution tokenizes all kinds of identification processes, enabling users to verify their identity in Web3 environments while maintaining control over their personal information.
We are thrilled to announce that the Web3 Identification Solution built by the IOTA Foundation with walt.id, IDnow, Bloom Wallet, and HAVN, has been selected to take part in the European Blockchain Sandbox, initiated by the European Commission. This is a testament to the solution’s innovative potential for Know-Your-Customer (KYC) processes in the Web3 environment.
The European Blockchain Sandbox
Launched in 2023, the European Blockchain Sandbox for innovative DLT use cases is an initiative by the European Commission. Every year, no more than 20 projects are selected to take part. The sandbox provides a controlled environment for testing and validating innovative DLT solutions while engaging closely with regulators from across the EU.
Being selected for the Sandbox is a significant milestone for our solution. It opens the door to regulatory discussions about KYC and privacy in a Web3 environment. This is especially relevant now that many regulators are considering their approach to decentralized finance (DeFi).
About the Solution
Traditional KYC processes have long been plagued by inefficiencies, high costs, and data privacy concerns. In collaboration with our partners, we have developed a reusable KYC system to identify Web3 users in a seamless and privacy-preserving way. Our solution enables users to maintain control over their data by leveraging distributed ledger technology (DLT) and tokenization of the KYC process.
As outlined in this blog post, the solution provides a seamless experience for Web3 identification. First, the user goes through a remote identification process with IDnow, in compliance with EU Anti-Money Laundering (AML) and KYC requirements. This process is then tokenized by walt.id and stored in the user's Bloom wallet as a soulbound token.
The token can then be recognized by Web3 dApps and other services to confirm that the user has been identified, without revealing personal information. It can be reused in multiple identification processes and, if requested by an authorized party, the identity information can be revealed and the token can also be revoked. Additionally, the identity information can be issued in the W3C Verifiable Credential format for permissionless sharing in off-chain use cases.
Watch the video below to learn more about the solution.
About the Partners
IDnow is a leading identity verification platform provider in Europe with a vision to make the connected world a safer place. The IDnow platform provides a broad portfolio of identity verification solutions, ranging from automated to human-assisted from purely online to point-of-sale, each of them optimized for user conversion rates and security.
In this project, IDnow provides the identity verification solution, which confirms the user’s identity either through a fully automated process or a human-assisted verification, depending on the specific needs of each case. Find out more here.
walt.id is a leading provider of open-source decentralized identity and wallet infrastructure already used by thousands of developers as well as governments, public authorities, DAOs, and businesses across industries.
As part of this project, walt.id provides the onboarding flow in which the identity verification conducted by IDnow takes place, it securely issues ID tokens to the user's wallet and enables dApps/apps to authenticate and verify users based on these tokens. Read more here.
Bloom is an all-in-one wallet for the IOTA, Shimmer, and EVM ecosystem. In this project, the identity token is stored in the Bloom wallet, enabling the user to prove their identity in the Web3 ecosystem.
HAVN Network specializes in the integration of hybrid blockchain technologies. HAVN provides the dedicated EVM-compatible KYC chain infrastructure, which is anchored to the Shimmer network. This enables interchain communication and transaction validation, ensuring the system’s overall efficiency and regulatory compliance. Find out more here.
Together with our partners, we continue to push the boundaries of technical and regulatory development in Web3, and we look forward to demonstrating our seamless KYC solution for DeFi and other Web3 applications.
Stay tuned for more exciting updates on our journey to revolutionizing KYC processes with the power of IOTA!