How Digital Identity Lays the Groundwork for Everything

The need to verify identities is often discussed in the context of regulated industries where businesses looking to onboard customers or generate finances are required to meet certain standards through KYC, KYB, AML checks and the like. These are some of the most obvious and pressing use cases for proving identity, especially in the blockchain and crypto scene in recent years, but the reach of identity verification extends well beyond these applications.

One of the hugely significant functions that verified identities can enable is that of reputation systems. Perhaps the most obvious use case for reputation systems is in social media. The prevalence of bots or fraudulent accounts on social media is an issue that’s been on the rise in recent years, with reports indicating that up to 15%, up to a third, or an even higher proportion of twitter users are bots, and that the situation isn’t improving. Meanwhile, Facebook is removing hundreds of millions of fake accounts each quarter. This is a massive issue, not only for the number of scams that such accounts perpetrate, but also misinformation that they’re used to spread, false advertising they can share, and the time, effort and money that individuals and businesses can waste interacting with them.

A solution for this would be to require every user on social media to have a verified identity before they make their account. Whilst this wouldn’t have to require the person’s real name being used, it would ensure that only real people or businesses could create accounts. In a similar manner, having a verified identity behind a profile could enable online content to be regulated by age or jurisdiction, and through zero-knowledge proofs could do so in a way that preserved the privacy of users. The idea of restricting users to only those who are verified with KYC and AML measures becomes even more attractive when considering that Web3 social media platforms will integrate finances and trading alongside social elements.

The idea of tying a real identity to a digital asset or profile has much wider-reaching potential though. A crucial aspect of having this capability is that individuals and businesses are able to use their identities to prove their legitimacy. This is already applied to financial services but can be used in any industry to prove ownership, or back up claims. An example of where this could have proved useful can be seen in the case of Craig Wright claiming to be Satoshi Nakamoto. Wright has used this claim to seek financial gain by fraudulently bringing legal action against developers he claimed were infringing his IP, and only recently has this been shut down. If there had been a private but provable digital identity tied to the genesis of bitcoin, Wright would have thought better of claiming Satoshi Nakamoto’s identity as his own and would have avoided not only the trouble and hassle he’s put many others through, but also the humiliation and criminal charges he now faces.

By implementing and combining some of these elements the safety and security of Web3 and the blockchain space could be vastly improved. Situations that continue to crop up where fraudsters and bad actors attempt to scam and mislead others could be minimized if the spaces they operate in were restricted to real people with linked reputations. However, the idea is not just applicable to people and businesses; a digital identity can be created for any real-world or digital asset, leading to the ability for verified individuals to claim and prove ownership of their property both online and offline. This opens up all manner of industries to benefit from the efficiency, flexibility and global nature of blockchain solutions, including hospitality, healthcare, gaming, shipping, logistics, provenance and more.

Blockpass is ideally suited to provide verified identities and support ventures around them and has been built with this functionality in mind. Not only does Blockpass carry out KYC, AML and KYB checks to ensure that ecosystems are kept safe from fraudulent or malicious actors, but solutions such as PASS Verify have been created to keep bot or fake accounts from interfering with digital spaces. In addition, elements such as the KYB RegistryTM provide a way to prove legitimacy for businesses, helping to build trust and avoid scams in the blockchain and Web3 space.

Whatever aspect of identity verification an individual or company needs, whether currently or looking at developments to come in the future, Blockpass is able to provide a suitable, affordable, secure and effective solution which prioritizes safety and privacy in the digital world.

About Blockpass

Ditch tedious onboarding and say hello to seamless compliance with Blockpass, the ultimate turnkey solution for KYC, KYB, and AML. Experience the market's most efficient and cost-effective compliance suite, built by seasoned compliance veterans and crypto-natives. Automate compliance processes, eradicate fraud, and onboard globally with confidence. Verify businesses worldwide, launch bank-grade verification for your organization, and instantly activate compliant KYC/AML for DeFi, exchanges, token launchpads, NFT mintings and beyond. Through Blockpass’ decentralized network of a million pre-verified crypto-enthusiasts and a thousand pre-verified businesses, you can expand your reach effortlessly. Leverage Advanced KYC BotTM for intelligent remediation, On-Chain KYC® for data-free anonymity, and Unhosted Wallet KYCTM to meet Crypto Travel Rule regulations. Join Animoca Brands, Cardano, Polygon, Chainlink, Delta Exchange, National Geographic, TinyTap, Seedify, ChainGPT, Iskra and many more in partnering with Blockpass for compliance you can trust, growth you can accelerate and an experience you can enjoy. Join the cutting edge of secure, streamlined onboardings.

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