IOTA Foundation, in collaboration with walt.io, has achieved a significant milestone in the realm of blockchain and digital identity solutions with the introduction of the IOTA Foundation Web3 Identification Solution. The solution, known as id, has been selected to participate in the European Blockchain Sandbox alongside IDnow, Bloom Wallet, and HAVN.
The European Blockchain Sandbox, established in 2023, aims to foster innovation by allowing up to 20 projects each year to test and enhance their DLT solutions in a controlled setting. This selection highlights how IOTA is poised to revolutionize the Know-Your-Customer (KYC) process in the Web3 domain by showcasing its innovative approach and capabilities.
This development not only showcases the practical strengths of the IOTA system on a global scale but also sets the stage for crucial discussions on decentralized finance (DeFi) and privacy within Web3 applications. These discussions are particularly relevant as regulators across Europe reevaluate their approach to the rapidly expanding decentralized finance sector.
By leveraging decentralized methods, IOTA and its partners have addressed the inefficiencies, cost issues, and privacy concerns associated with traditional KYC processes. Their state-of-the-art KYC system enables seamless creation and management of KYC for Web3 identities while safeguarding user data through DLT and tokenization technologies. This approach empowers users to maintain control over their personal data securely and confidently during digital interactions.
The process begins with IDnow Remote identification to comply with EU Anti-Money Laundering and KYC regulations. The verified identity is then tokenized by walt and securely stored in the user’s Bloom Wallet. This derivative token, containing verified identity information without revealing sensitive details, can be presented to web3 dApps/services for identification purposes. It can also be disclosed or revoked upon authorized requests, enhancing its versatility and security features.
IDnow, a leading provider of identity verification platforms in Europe, offers customizable identity checks to meet individual user needs. Meanwhile, walt.io manages the onboarding process, token creation, and storage protocols. Bloom Wallet serves as the repository for these tokens, allowing users to easily prove their identity to any Web3 service.
HAVN Network enhances the solution by integrating hybrid blockchain technology, creating a dedicated EVM-compatible KYC chain linked to the Shimmer network. This integration facilitates interchain data transport and ensures regulatory compliance and operational efficiency.
In summary, the collaboration between IOTA, walt.io, IDnow, Bloom Wallet, and HAVN in the European Blockchain Sandbox marks a significant milestone in the evolution of Web3 identification solutions. This innovative approach not only streamlines the KYC process but also sets new standards for privacy and security in digital interactions.