IOTA Foundation in partnership with walt.io have taken a major step forward for blockchain and digital identity solutions with the IOTA Foundation Web3 Identification Solution id, IDnow, Bloom Wallet and HAVN have been selected to participate in the European Blockchain Sandbox.
Startupp acted as the EU approved regulatory experimentation sandbox by the European Commission on applications of DLT upon the initiative from some institutions of the European Parliament. This choice outlines how IOTA can disrupt Know-Your-Customer (KYC) of the Web3 course of life by showcasing its novel strategy and capabilities.
Launched in 2023, the European Blockchain Sandbox aims to encourage such innovation by enabling up to 20 projects each year to trial and further develop their DLT solutions in a controlled environment.
This event not only demonstrates the more than practical strengths of the IOTA system at a greater global scale, but also provides an important opening for the oncoming regulatory conversation on decentralised finance (DeFi), as well as privacy where it concerns Web3 applications. The conversation is relevant in the backdrop as regulators across Europe reassess their approach to the rapidly growing decentralized finance sector.
Changing the face of KYC through decentralized methods
Challenges of traditional KYC are well-documented inefficiencies in their operations, lack of cost-effectiveness, and potential for privacy force majeure.
Recognizing these challenges, our partners and IOTA have developed a state-of-the-art KYC system to easily create KYC for Web3 identity maintenance and management that enables KYC, while keeping users data protected through the use of DLT and tokenization technologies. This novel approach enables users to keep their personal data under control securely and trustfully back digital interactions.
In short, the process commences with an IDnow Remote identification to comply with stringent EU Anti-Money Laundering and KYC regulations. The required identity verification is then tokenized by walt. Staked with its soulbound token in either the Bloom Wallet of the user.
A derivative token that holds verified identity (even without revealing raw identifiable details) that can be presented to web3 dApps / services as a form of identification. In addition, as it is intended for reuse across platforms, it can be both disclosed or revoked upon authorized requests which magnifies its volunteer and security features.
IDnow, one of the leading providers for identity verification platform in Europe, shares their knowledge with customizable identity checks that meet the individual demands and requests from any user.
Meanwhile, walt. id orchestrates how the onboarding process is to be done, how ID tokens should be safely created and where it should be stored. Bloom Wallet lets you store these, and allows you to easily prove who you are with any Web3 service.
With the integration of hybrid blockchain technology, HAVN Network further builds on the solution value by adding a dedicated EVM-compatible KYC chain linked to the Shimmer network. Such a solution provides both interchain data transport and regulatory compliance / operational efficiency, briefly.
