AllianceBlock has just unveiled the next piece of its DeFi ecosystem puzzle, launching a new Trustless Identity Verification service that enables any DeFi users to prove their identity in a secure and decentralized way.
The new app is meant to solve the problem of trustlessly sharing identity data. Users can prove their identity in a secure way just once, and then use the verifiable identity they create on-chain to sign up with any supported service in a fully compliant way.
In other words, TIDV helps DeFi service providers to avoid regulatory pitfalls without creating friction for their users, who may have concerns about sharing personal information and want to avoid having to prove their identity repeatedly, with every new dApp they sign up for.
TIDV’s standout features include its flexibility and security. Each project that’s looking to verify the identity of a new user can approve requests based on specified criteria, while users have the benefit of protecting their anonymity by controlling access to their personal data.
AllianceBlock says it’s a desperately needed solution for the DeFi industry, which is bracing itself for the inevitable introduction of regulations to protect investors. Because of this, institutional investors especially will require a compliant solution if they’re going to be able to participate in the DeFi sector. TIDV delivers that solution, giving users the ability to generate an encrypted but provable identity that can then be used with any DeFi service.
To create TIDV, AllianceBlock said it is partnering with the identity verification solution provider GBG, which will carry out KYC checks for users on its behalf. When a user signs up with TIDV, they’ll need to undergo KYC to prove their identity.
Their credentials will then be encrypted and stored on their own web browser, with a provable identity stored on-chain via smart contracts. Users can then share these credentials with any supported service while retaining complete control over their personal information.
AllianceBlock said the plan is to bring TIDV to all of its DeFi services, including the AllianceBlock DEX, Data Tunnel, and DeFi Terminal. Initially, though, TIDV is first being enabled with AllianceBlock’s crowdfunding platform Fundrs, which is an alternative to venture capital funding for Web3 startups.
Rather than seek traditional funding from accredited investors, crypto projects can seek the backing of their communities via a token sale on Fundrs. The first project to do this in a fully compliant manner using TIDV will be dua Token.
AllianceBlock CEO Rachid Ajaja could hardly contain his excitement about the service, saying that it has the potential to “revolutionize” the way DeFi and blockchain compliance is managed.
“Our GBG partnership will streamline this verification process and ensure that regulatory compliance rules are satisfied,” he promised. “We are absolutely excited about this partnership and look forward to integrating a compliant and trustless solution for all.”