Transak, a leading Web3 payments provider, is teaming up with privacy-centric decentralized identity platform Privado ID, formerly Polygon ID, to power a new decentralized authentication service called “Reusable KYC.”
This Know Your Customer (KYC) sharing service is designed to enhance and improve decentralized identity verification process, boosting the overall Web3 onboarding processes.
“We are excited to partner with Privado ID to pioneer the future of decentralized identity verification. This collaboration embodies the principles of decentralization by allowing users to control their own identity data,” Yeshu Agarwal, the chief technical officer at Transak, said.
Tapping into Privado ID’s latest zero-knowledge (ZK) technology provides a new framework that sees a “scalable and secure solution” for on-chain ID verification, the Transak exec added.
Transak introduces KYC-as-a-Service
As highlighted in today’s announcement, KYC Reusable is set to benefit a wide range of users and industries globally, including exchanges, real-world asset (RWA) platforms and Web3 games. According to Transak, these are some of entities that currently have stringent regulatory compliance checks, but wish to ensure user privacy.
To help grow the ecosystem, Transak has introduced KYC-as-a-Service as part of the collaboration with Privado ID. The company says this product aims at simplifying user verification.
It works by integrating Privado ID and Transak’s KYC infrastructure, allowing users to complete KYC processes only once. Thereafter, access to verified credentials is on-chain.
In this case, the user’s data is stored in a decentralized token generated after the user completes their KYC on Transak. Once done, the user has to scan and store this token in a Privado ID wallet. The data then becomes accessible on-chain. Users easily share these via Transak’s popular one click KYC sharing service.
KYC sharing helps remove repetitive KYC processes, offers user control, and adds to data privacy among others.
Transak’s “Proof of Uniqueness” is another important innovation in this collaboration. The main take is that Proof of Uniquesness provides for unique verification mechanism that can help projects greatly improve on rewards distribution or airdrops.
In crypto, one of the biggest challenges with aidrops is Sybil attacks – the scenario in airdrop farming that often sees individuals try to cheat distribution systems with multiple wallets.
Proof of Uniqueness means projects can target humans, and not wallets, hence eliminating massive challenges around Sybil attacks. As well as PoU, Transak and Privado ID are looking to work on areas such as proof of humanity, proof of residency and proof of age.
