Tech
Blockchain technology helps enable reusable KYC solutions
Last updated: May 23, 2024 1:01 pm EDT | 6 minute read
Know-Your-Customer (KYC) solutions are becoming increasingly important for crypto firms, financial services companies and institutions.
Found the Grand View search that the global KYC software market size was valued at $2.93 billion in 2021. The number is expected to increase at a compound annual growth rate (CAGR) of 20.8% over the next six years.
The Grand View Research report also highlighted the growth of the KYC market, which can be attributed to the importance of compliance management and the growing number of identity-related frauds in financial institutions. The rise of deep fakes and artificial intelligence (AI) scams. it is also leading to greater adoption of KYC.
The problem with traditional KYC solutions
While KYC is an important requirementthe process often represents a burden for both users and businesses.
Riley Hughes, co-founder and CEO of digital identity startup Trinsic, told Cryptonews that KYC users typically have to provide a photo of themselves, along with identification.
As KYC becomes more common, Hughes pointed out that users typically have to repeat this process multiple times.
“A person will probably have to do KYC about ten different times across multiple apps and platforms,” Hughes said. “But statistics show that asking users to verify themselves using a photo of a plastic ID card results in a drop of up to 40%.”
Vishal Kapoor, chief operating officer of blockchain technology firm Chia Network, also told Cryptonews that KYC is expensive to implement.
A recent article from Betanews said KYC measures amount to 40% of all anti-money laundering (AML) compliance costs, totaling $5.7 million per year for banks.
Reusable KYC gains traction
Given these challenges, reusable KYC solutions have started to gain ground.
“Reusable identification, or KYC, allows users to leverage past verification instead of having to re-verify themselves across all platforms,” Hughes said.
To put that into perspective, Hughes explained it Trinsic recently launched an “identity acceptance network” that enables reusable KYC.
“Businesses can now use Trinsic to verify 60,800,000 people 10 times faster than an identity verification done from scratch, while reducing fraud,” he said.
Today, Trinsic is launching the first identity acceptance network in collaboration with dozens of world-class identity providers, including @Clear, @getyoti, @enterIDVerse, @AirsideHQ a trust company, e @dentityme.
Businesses can use Trinsic to verify 60,800,000 people 10 times… pic.twitter.com/3Z3p3l0hRs
— Trinsico (@trinsic_id) May 21, 2024
Hughes explained that businesses include CLEAR – the technology company that handles biometric verification of travel documents at major airports – along with others, has partnered with Trinsic as part of the Identity Acceptance Network.
“The goal behind this network is to get users verified via KYC as quickly as possible to meet the enterprise risk threshold,” he said. “If users have already been verified by a company in the network, we try to direct other companies in the network to that verification.”
For example, if a CLEAR user has a CLEAR verification, they can use it again for other platforms within the identity acceptance network.
Blockchain for reusable KYC
While reusable KYC solutions can save users and businesses time and money, adding blockchain to the mix allows users to own their personal information and data.
For example, identity technology company Dentity is part of Trinsic’s identity acceptance network. Dentity CEO Jeffrey Schwartz told Cryptonews that the platform stores user credentials on the Bitcoin blockchain.
“We store decentralized identifiers (DIDs) on-chain to verify the authenticity of issuers,” Schwartz said. “The only thing that needs to be on-chain is what is needed to verify a credential.”
Chia Network is also doing this. According to Kapoor, Chia’s Verifiable Credentials (VC) allows a KYC provider to perform KYC by issuing a verifiable credential token on-chain.
“This allows service providers, like Dapps, to verify that a user has undergone KYC verification with a trusted KYC provider, without requiring the user to reveal any personal information,” he said.
Kapoor explained that people are looking for better protection of their personal information as identity scams increase. Panda Security statistics prove it over 10 billion personal bests have been exposed globally due to data breaches since March 2020.
“Using on-chain VC and DID, the individual can custodian their VC and decide who it can or should be shared with, without risk of oversharing or data exposure,” Kapoor said. “This also reduces external touchpoints with their sensitive personal information.”
Blockchain protects user data
While it is noteworthy that reusable KYC is gaining traction, some concerns remain. For example, a recent Reuters article highlighted this criminals can still quickly exploit automated KYC controls, putting a user’s information at risk.
Data storage on the chain try to solve this problem. For example, Deloitte Switzerland has started issuing reusable KYC credentials last year to enable access to global fundraising of digital assets. Polimec, a decentralized financing protocol developed on Polkadot, has collaborated with Deloitte Switzerland to enable this functionality.
.@DeloitteCH-powered, @Web3foundation-sponsored, @Kiltprotocol Credentials. Ready to be used @ProtocolloPolimec https://t.co/LK3Jw31bDQ
— fabi (@FabianGompf) April 29, 2024
Luca von Wyttenbach, co-founder of Polimec, told Cryptonews that a KYC credential allows users to establish a self-sovereign digital identity validating their data once they have Deloitte.
“After Deloitte issues a KYC credential, which is kept under the control of the user, they will be able to use it with several online services, the first of which is Polimec,” Wyttenbach said.
He added that the website or service provider can rely on the shared data as it has been approved and certified by Deloitte.
“This means that users need to share only the minimum necessary data about themselves,” he noted.
Wyttenbach further explained that Deloitte’s KYC credentials are anchored to the KILT protocol. He noted that Deloitte conducts client KYC and is the only party that receives and stores such data. Next, the data is created into a KYC credential, which is hashed and stored in the user’s Deloitte wallet.
“The hash is pegged to KILT, meaning no personal information is stored on the chain. Users can verify their data against the hash by presenting their credentials,” Wyttenbach said. “In short, credentials are pseudonymous: therefore, all transactions and network participants on Polimec can be processed in a secure and regulatory compliant manner, preserving data privacy.”
Challenges can hinder adoption
Although reusable KYC solutions are currently being used on the blockchain, challenges are still present.
For example, Julian Leitloff, co-founder of decentralized identity platform idOS Network, told Cryptonews that encouraging widespread adoption of reusable KYC solutions among users and service providers is a major obstacle.
Echoing this, Schwartz noted that Trinsic’s Identity Acceptance Network requires collaboration.
“The idea behind this is that we all share user credentials,” he said. “I hope this collaboration will allow us to achieve this goal, but interoperability is key here.”
Hughes is aware of this challenge. He shared that Trinsic’s identity acceptance network currently covers over 60 million users, but believes the platform needs to move forward aggressively.
“Everyone in the EU will soon have access to a digital identity wallet,” said Hughes. “We will have to implement the same standards in the future.”
Additionally, Leitloff highlighted that another major challenge related to reusable KYC includes ensuring data privacy and security.
“Because user data must remain private and secure even when shared across multiple platforms,” he said.
To address these challenges, Leitloff explained that idOS is implementing advanced encryption techniques such as Zero-Knowledge Proofs (ZKP) AND Secure Multigame Computing (MPC) to protect user data.
“Promoting the use of standardized identity formats such as the W3C Verifiable Credentials ensures consistency and interoperability,” he said. “Using decentralized storage networks will also enable data availability and reduce the risk of centralized points of failure.”
Tech
Harvard Alumni, Tech Moguls, and Best-Selling Authors Drive Nearly $600 Million in Pre-Order Sales
BlockDAG Network’s history is one of innovation, perseverance, and a vision to push the boundaries of blockchain technology. With Harvard alumni, tech moguls, and best-selling authors at the helm, BlockDAG is rewriting the rules of the cryptocurrency game.
CEO Antony Turner, inspired by the successes and shortcomings of Bitcoin and Ethereum, says, “BlockDAG leverages existing technology to push the boundaries of speed, security, and decentralization.” This powerhouse team has led a staggering 1,600% price increase in 20 pre-sale rounds, raising over $63.9 million. The secret? Unparalleled expertise and a bold vision for the future of blockchain.
Let’s dive into BlockDAG’s success story and find out what the future holds for this cryptocurrency.
The Origin: Why BlockDAG Was Created
In a recent interview, BlockDAG CEO Antony Turner perfectly summed up why the market needs BlockDAG’s ongoing revolution. He said:
“The creation of BlockDAG was inspired by Bitcoin and Ethereum, their successes and their shortcomings.
If you look at almost any new technology, it is very rare that the first movers remain at the forefront forever. Later incumbents have a huge advantage in entering a market where the need has been established and the technology is no longer cutting edge.
BlockDAG has done just that: our innovation is incorporating existing technology to provide a better solution, allowing us to push the boundaries of speed, security, and decentralization.”
The Present: How Far Has BlockDAG Come?
BlockDAG’s presale is setting new benchmarks in the cryptocurrency investment landscape. With a stunning 1600% price increase over 20 presale lots, it has already raised over $63.9 million in capital, having sold over 12.43 billion BDAG coins.
This impressive performance underscores the overwhelming confidence of investors in BlockDAG’s vision and leadership. The presale attracted over 20,000 individual investors, with the BlockDAG community growing exponentially by the hour.
These monumental milestones have been achieved thanks to the unparalleled skills, experience and expertise of BlockDAG’s management team:
Antony Turner – Chief Executive Officer
Antony Turner, CEO of BlockDAG, has over 20 years of experience in the Fintech, EdTech, Travel and Crypto industries. He has held senior roles at SPIRIT Blockchain Capital and co-founded Axona-Analytics and SwissOne. Antony excels in financial modeling, business management and scaling growth companies, with expertise in trading, software, IoT, blockchain and cryptocurrency.
Director of Communications
Youssef Khaoulaj, CSO of BlockDAG, is a Smart Contract Auditor, Metaverse Expert, and Red Team Hacker. He ensures system security and disaster preparedness, and advises senior management on security issues.
advisory Committee
Steven Clarke-Martin, a technologist and consultant, excels in enterprise technology, startups, and blockchain, with a focus on DAOs and smart contracts. Maurice Herlihy, a Harvard and MIT graduate, is an award-winning computer scientist at Brown University, with experience in distributed computing and consulting roles, most notably at Algorand.
The Future: Becoming the Cryptocurrency with the Highest Market Cap in the World
Given its impressive track record and a team of geniuses working tirelessly behind the scenes, BlockDAG is quickly approaching the $600 million pre-sale milestone. This crypto powerhouse will soon enter the top 30 cryptocurrencies by market cap.
Currently trading at $0.017 per coin, BlockDAG is expected to hit $1 million in the coming months, with the potential to hit $30 per coin by 2030. Early investors have already enjoyed a 1600% ROI by batch 21, fueling a huge amount of excitement around BlockDAG’s presale. The platform is seeing significant whale buying, and demand is so high that batch 21 is almost sold out. The upcoming batch is expected to drive prices even higher.
Invest in BlockDAG Pre-Sale Now:
Pre-sale: https://purchase.blockdag.network
Website: https://blockdag.network
Telegram: https://t.me/blockDAGnetwork
Discord: Italian: https://discord.gg/Q7BxghMVyu
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Tech
How Karak’s Latest Tech Integration Could Make Data Breaches Obsolete
- Space and Time uses zero-knowledge proofs to ensure secure and tamper-proof data processing for smart contracts and enterprises.
- The integration facilitates faster development and deployment of Distributed Secure Services (DSS) on the Karak platform.
Karak, a platform known for its strong security capabilities, is enhancing its Distributed Secure Services (DSS) by integrating Space and Time as a zero-knowledge (ZK) coprocessor. This move is intended to strengthen trustless operations across its network, especially in slashing and rewards mechanisms.
Space and Time is a verifiable processing layer that uses zero-knowledge proofs to ensure that computations on decentralized data warehouses are secure and untampered with. This system enables smart contracts, large language models (LLMs), and enterprises to process data without integrity concerns.
The integration with Karak will enable the platform to use Proof of SQL, a new ZK-proof approach developed by Space and Time, to confirm that SQL query results are accurate and have not been tampered with.
One of the key features of this integration is the enhancement of DSS on Karak. DSS are decentralized services that use re-staked assets to secure the various operations they provide, from simple utilities to complex marketplaces. The addition of Space and Time technology enables faster development and deployment of these services, especially by simplifying slashing logic, which is critical to maintaining security and trust in decentralized networks.
Additionally, Space and Time is developing its own DSS for blockchain data indexing. This service will allow community members to easily participate in the network by running indexing nodes. This is especially beneficial for applications that require high security and decentralization, such as decentralized data indexing.
The integration architecture follows a detailed and secure flow. When a Karak slashing contract needs to verify a SQL query, it calls the Space and Time relayer contract with the required SQL statement. This contract then emits an event with the query details, which is detected by operators in the Space and Time network.
These operators, responsible for indexing and monitoring DSS activities, validate the event and route the work to a verification operator who runs the query and generates the necessary ZK proof.
The result, along with a cryptographic commitment on the queried data, is sent to the relayer contract, which verifies and returns the data to the Karak cutter contract. This end-to-end process ensures that the data used in decision-making, such as determining penalties within the DSS, is accurate and reliable.
Karak’s mission is to provide universal security, but it also extends the capabilities of Space and Time to support multiple DSSs with their data indexing needs. As these technologies evolve, they are set to redefine the secure, decentralized computing landscape, making it more accessible and efficient for developers and enterprises alike. This integration represents a significant step towards a more secure and verifiable digital infrastructure in the blockchain space.
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Tech
Cryptocurrency Payments: Should CFOs Consider This Ferrari-Approved Trend?
Iconic Italian luxury carmaker Ferrari has announced the expansion of its cryptocurrency payment system to its European dealer network.
The move, which follows a successful launch in North America less than a year ago, raises a crucial question for CFOs across industries: Is it time to consider accepting cryptocurrency as a form of payment for your business?
Ferrari’s move isn’t an isolated one. It’s part of a broader trend of companies embracing digital assets. As of 2024, we’re seeing a growing number of companies, from tech giants to traditional retailers, accepting cryptocurrencies.
This change is determined by several factors:
- Growing mainstream adoption of cryptocurrencies
- Growing demand from tech-savvy and affluent consumers
- Potential for faster and cheaper international transactions
- Desire to project an innovative brand image
Ferrari’s approach is particularly noteworthy. They have partnered with BitPay, a leading cryptocurrency payment processor, to allow customers to purchase vehicles using Bitcoin, Ethereum, and USDC. This satisfies their tech-savvy and affluent customer base, many of whom have large digital asset holdings.
Navigating Opportunities and Challenges
Ferrari’s adoption of cryptocurrency payments illustrates several key opportunities for companies considering this move. First, it opens the door to new customer segments. By accepting cryptocurrency, Ferrari is targeting a younger, tech-savvy demographic—people who have embraced digital assets and see them as a legitimate form of value exchange. This strategy allows the company to connect with a new generation of affluent customers who may prefer to conduct high-value transactions in cryptocurrency.
Second, cryptocurrency adoption increases global reach. International payments, which can be complex and time-consuming with traditional methods, become significantly easier with cryptocurrency transactions. This can be especially beneficial for businesses that operate in multiple countries or deal with international customers, as it potentially reduces friction in cross-border transactions.
Third, accepting cryptocurrency positions a company as innovative and forward-thinking. In today’s fast-paced business environment, being seen as an early adopter of emerging technologies can significantly boost a brand’s image. Ferrari’s move sends a clear message that they are at the forefront of financial innovation, which can appeal to customers who value cutting-edge approaches.
Finally, there is the potential for cost savings. Traditional payment methods, especially for international transactions, often incur substantial fees. Cryptocurrency transactions, on the other hand, can offer lower transaction costs. For high-value purchases, such as luxury cars, these savings could be significant for both the business and the customer.
While the opportunities are enticing, accepting cryptocurrency payments also presents significant challenges that businesses must address. The most notable of these is volatility. Cryptocurrency values can fluctuate dramatically, sometimes within hours, posing potential risk to businesses that accept them as payment. Ferrari addressed this challenge by implementing a system that instantly converts cryptocurrency received into traditional fiat currencies, effectively mitigating the risk of value fluctuations.
Regulatory uncertainty is another major concern. The legal landscape surrounding cryptocurrencies is still evolving in many jurisdictions around the world. This lack of clear and consistent regulations can create compliance challenges for companies, especially those operating internationally. Companies must remain vigilant and adaptable as new laws and regulations emerge, which can be a resource-intensive process.
Implementation costs are also a significant obstacle. Integrating cryptocurrency payment systems often requires substantial investment in new technology infrastructure and extensive staff training. This can be especially challenging for small businesses or those with limited IT resources. The costs are not just financial; a significant investment of time is also required to ensure smooth implementation and operation.
Finally, security concerns loom large in the world of cryptocurrency transactions. While blockchain technology offers some security benefits, cryptocurrency transactions still require robust cybersecurity measures to protect against fraud, hacks, and other malicious activity. Businesses must invest in robust security protocols and stay up-to-date on the latest threats and protections, adding another layer of complexity and potential costs to accepting cryptocurrency payments.
Strategic Considerations for CFOs
If you’re thinking of following in Ferrari’s footsteps, here are the key factors to consider:
- Risk Assessment: Carefully evaluate potential risks to your business, including financial, regulatory, and reputational risks.
- Market Analysis: Evaluate whether your customer base is significantly interested in using cryptocurrencies for payments.
- Technology Infrastructure: Determine the costs and complexities of implementing a cryptographic payment system that integrates with existing financial processes.
- Regulatory Compliance: Ensure that cryptocurrency acceptance is in line with local regulations in all markets you operate in. Ferrari’s gradual rollout demonstrates the importance of this consideration.
- Financial Impact: Analyze how accepting cryptocurrency could impact your cash flow, accounting practices, and financial reporting.
- Partnership Evaluation: Consider partnering with established crypto payment processors to reduce risk and simplify implementation.
- Employee Training: Plan comprehensive training to ensure your team is equipped to handle cryptocurrency transactions and answer customer questions.
While Ferrari’s adoption of cryptocurrency payments is exciting, it’s important to consider this trend carefully.
A CFO’s decision to adopt cryptocurrency as a means of payment should be based on a thorough analysis of your company’s specific needs, risk tolerance, and strategic goals. Cryptocurrency payments may not be right for every business, but for some, they could provide a competitive advantage in an increasingly digital marketplace.
Remember that the landscape is rapidly evolving. Stay informed about regulatory changes, technological advancements, and changing consumer preferences. Whether you decide to accelerate your crypto engines now or wait in the pit, keeping this payment option on your radar is critical to navigating the future of business transactions.
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Tech
Bitcoin Tumbles as Crypto Market Selloff Mirrors Tech Stocks’ Plunge
The world’s largest cryptocurrency, Bitcoin (BTC), suffered a significant price decline on Wednesday, falling below $65,000. The decline coincides with a broader market sell-off that has hit technology stocks hard.
Cryptocurrency Liquidations Hit Hard
CoinGlass data reveals a surge in long liquidations in the cryptocurrency market over the past 24 hours. These liquidations, totaling $220.7 million, represent forced selling of positions that had bet on price increases. Bitcoin itself accounted for $14.8 million in long liquidations.
Ethereum leads the decline
Ethereal (ETH), the second-largest cryptocurrency, has seen a steeper decline than Bitcoin, falling nearly 8% to trade around $3,177. This decline mirrors Bitcoin’s price action, suggesting a broader market correction.
Cryptocurrency market crash mirrors tech sector crash
The cryptocurrency market decline appears to be linked to the significant losses seen in the U.S. stock market on Wednesday. Stock market listing The index, heavily weighted toward technology stocks, posted its sharpest decline since October 2022, falling 3.65%.
Analysts cite multiple factors
Several factors may have contributed to the cryptocurrency market crash:
- Tech earnings are underwhelming: Earnings reports from tech giants like Alphabet are disappointing (Google(the parent company of), on Tuesday, triggered a sell-off in technology stocks with higher-than-expected capital expenditures that could have repercussions on the cryptocurrency market.
- Changing Political Landscape: The potential impact of the upcoming US elections and changes in Washington’s policy stance towards cryptocurrencies could influence investor sentiment.
- Ethereal ETF Hopes on the line: While bullish sentiment around a potential U.S. Ethereum ETF initially boosted the market, delays or rejections could dampen enthusiasm.
Analysts’ opinions differ
Despite the short-term losses, some analysts remain optimistic about Bitcoin’s long-term prospects. Singapore-based cryptocurrency trading firm QCP Capital believes Bitcoin could follow a similar trajectory to its post-ETF launch all-time high, with Ethereum potentially converging with its previous highs on sustained institutional interest.
Rich Dad Poor Dad Author’s Prediction
Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, predicts a potential surge in the price of Bitcoin if Donald Trump is re-elected as US president. He predicts a surge to $105,000 per coin by August 2025, fueled by a weaker dollar that is set to boost US exports.
BTC/USD Technical Outlook
Bitcoin price is currently trading below key support levels, including the $65,500 level and the 100 hourly moving average. A break below the $64,000 level could lead to further declines towards the $63,200 support zone. However, a recovery above the $65,500 level could trigger another increase in the coming sessions.
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