Iota's Web3 Identification Solution Chosen for EU Blockchain Sandbox Initiative
Summary:
The European Commission has selected Iota’s Web3 Identification solution for inclusion in its European Blockchain Sandbox initiative (EBSI). The solution, developed with Walt.id, IDnow, Bloom Wallet, and HAVN, aims to innovate traditional identification processes with a reusable KYC system via Distributed Ledger Technology (DLT). This comes amid the European Union's active implementation of a digital identity scheme, promoting security and user control over personal data.
Iota's Web3 Identification solution has been picked by the European Commission for its latest European Blockchain Sandbox initiative (EBSI). This announcement was made on June 13th by the EU Commission, which named the members of the second group of its EBSI. Iota, a cryptographic ecosystem and open-source distributed ledger was among the chosen. Notably, Iota's Web3 ID solution, was developed with Walt.id, IDnow, Bloom Wallet, and HAVN.
Iota hailed the selection as a critical stepping stone for their identity solution. It could potentially initiate regulatory dialogues about privacy and the Know Your Customer (KYC) principle in a Web3 setting. This is increasingly important as regulators contemplate their stance on decentralized finance (DeFi).
The European Commission initiated EBSI in 2023 as an experimental domain for Distributed Ledger Technology (DLT) solutions in various sectors. Each group is made up of no more than 20 projects. These projects then undergo verification and testing in a controlled setting and get chances to interact with regulators across the EU.
In addition to Iota, RealEstate.Exchange (REX) DigiShares, DoxyChain, Hacken, and Origintrail were among the projects chosen. An essential part of Iota’s Web3 ID application is to change the traditional approach of implementing KYC procedures. These are often affected by costly inefficiencies and privacy concerns. To tackle these issues, Iota devised a reusable KYC system utilizing DLT and tokenization, which improves security and offers users more control over personal data.
According to Iota, the identity verification process begins with IDnow performing remote identification ensuring user compliance with EU's Anti-Money Laundering (AML) and KYC rules. In Iota’s Web3 ID solution, the validated identity is tokenized and kept in the user’s wallet as a soulbound token. This token can be utilized across several Web3 platforms to verify identity without disclosing personal data. This coincides with EU's current drive to establish a digital ID scheme.
Updated on May 21, the European Digital Identity (EUDI) regulation initially published in February 2023, requires full implementation by 2026. This mandate requires all EU states to offer at least one EU digital ID wallet to every citizen and resident. The digital ID wallet is tailor-made for electronically signing and storing various documents, from academic qualification certificates to train tickets. It is seen as the succeeding stage in the evolution of European living and working experiences.
Blockchain ecosystem TON, though not specific to Europe, has allocated Toncoin tokens worth $5 million. This is to motivate users to verify their identities through cutting-edge palm-scanning technology. This move is part of a broader trend within the industry towards resolving the issue of digital identity in a progressively digital world.
Published At
6/13/2024 3:28:44 PM
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