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The IOTA Foundation’s Web3 solution chosen for the EU Blockchain Sandbox initiative
THE IOTA Foundationin collaboration with its partners, it developed a Web3 identification solution that was chosen to be included in the European Blockchain Sandbox.
For a June 13th blog postThe IOTA Foundation, in collaboration with wait.id, IDnow, Bloom Wallet and HAVN has developed a web3 identification solution which has been chosen for the European Blockchain Sandbox.
The European Commission started this project in 2023 to provide a controlled environment to test and validate new distributed ledger technology (DLT) solutions by working with regulators across the EU.
The Web3 identification solution aims to transform traditional Know-Your-Customer (KYC) processes, which have long been hampered by inefficiencies, high prices and privacy concerns.
Using DLT and tokenization, the solution allows users to maintain control over their personal data while providing an efficient and privacy-preserving way to identify themselves in Web3 environments.
The identification process begins with users completing a remote identification with IDnow, the leading identity verification platform provider in Europe. This procedure meets the EU’s anti-money laundering (AML) and KYC criteria.
Next, the identification is tokenized by walt.id, a leading provider of open source decentralized identity and wallet infrastructure, and subsequently stored in the user’s Bloom wallet as a soulbound token.
The soulbound token can be recognized by Web3 decentralized applications (dApps) and other services to verify the user’s identity without disclosing personal information.
With this reusable token, the need for repetitive identification procedures is eliminated, thus improving user experience and privacy.
The reusable token improves user experience and privacy by eliminating the need for repetitive identification procedures.
Upon request of an authorized party, identity details may be disclosed and the token may be revoked.
Identity information can be issued as W3C verifiable credentials, allowing permissionless sharing in off-chain scenarios.
HAVN Network, an expert in integrating hybrid blockchain technology, provides the EVM-compatible dedicated KYC chain architecture connected to the Shimmer network. This ensures regulatory compliance and facilitates efficient interchain communication and transaction validation.
The selection of the Web3 identification solution for the European blockchain sandbox represents a significant milestone, facilitating regulatory discussions on KYC and privacy in the Web3 context. This is particularly pertinent considering the authorities’ growing interest in decentralized finance (DEFI).
In addition to the Web3 identification solution, the IOTA ecosystem has been further enhanced through a partnership with Pyth Networkleading provider of low latency price oracles.
The integration, announced separately blog post from the IOTA Foundation, brings Pyth Oracle services to the IOTA EVM to improve data accuracy and security, supporting a thriving decentralized finance (DeFi) landscape.
This partnership is especially beneficial for decentralized exchanges (DEX), lending protocols, and derivatives platforms.
Pyth Network, which provides price updates multiple times per second, supports over 300 applications and 50 blockchains, ensuring the continuous availability of accurate data.