The collaboration between the IOTA Foundation and walt.io has made significant strides in the realm of blockchain and digital identity solutions through the introduction of the IOTA Foundation Web3 Identification Solution. Partnering with IDnow, Bloom Wallet, and HAVN, these innovative solutions have been chosen to participate in the European Blockchain Sandbox.
The European Blockchain Sandbox, launched in 2023, aims to foster innovation by allowing up to 20 projects annually to test and enhance their DLT solutions in a controlled setting. This selection highlights how IOTA has the potential to revolutionize Know-Your-Customer (KYC) processes in the Web3 environment, showcasing its unique approach and capabilities.
This event not only showcases the practical strengths of the IOTA system on a global scale but also signals a significant opportunity for discussions on decentralized finance (DeFi) regulations and privacy concerns in Web3 applications. As regulators in Europe reevaluate their approach to the rapidly expanding DeFi sector, these conversations become increasingly relevant.
Traditional KYC processes face challenges such as inefficiencies, high costs, and privacy risks. In response, IOTA and its partners have developed an advanced KYC system that leverages DLT and tokenization technologies to securely manage Web3 identities while safeguarding user data. This novel approach empowers users to control their personal information securely during digital interactions.
The process begins with an IDnow Remote identification to comply with EU Anti-Money Laundering and KYC regulations. The verified identity is then tokenized by walt.io and stored securely in the user’s Bloom Wallet. This derivative token can be presented to web3 dApps/services for identification purposes without revealing sensitive details, enhancing both security and user control.
With the integration of hybrid blockchain technology, HAVN Network enhances the solution by introducing an EVM-compatible KYC chain linked to the Shimmer network, providing interchain data transport and regulatory compliance. IDnow offers customizable identity checks to meet individual user needs, while walt.io manages the onboarding process and secure storage of ID tokens. Bloom Wallet enables users to easily prove their identity to any Web3 service.
This groundbreaking Web3 Identification Solution by IOTA, walt.io, IDnow, Bloom Wallet, and HAVN Network has been selected for the European Sandbox initiative, spearheaded by the EU Commission. This collaboration represents a significant step forward in the development of secure and efficient digital identity solutions.
