Oasis Labs and Equifax Inc. announced a cooperation to establish a “KYC” identity management platform for Web3 and blockchain firms.
The blockchain cloud-computing platform Oasis Labs, which is focused on privacy, and Equifax Inc. announced a partnership today to build a “Know Your Customer” identity management platform for companies that want to get into the Web3 and blockchain industries.
Web3 is what experts call the next version of the World Wide Web, or the decentralized web. It is built on blockchain technology and allows anonymous peer-to-peer financial transactions using cryptocurrencies like bitcoin and Ethereum.
Based on blockchain tokens, huge economies have grown up in Web3. According to CoinMarketCap, the global cryptocurrency market cap is more than $1 trillion. The market value of Bitcoin is around $400 billion, and the value of Ethereum is around $190 billion.
People trade a lot more tokens than just those two cryptocurrencies in decentralized finance apps, which is a much bigger ecosystem. It doesn’t use centralized systems like banks or financial institutions, but it does offer things like loans, interest-bearing accounts, trading securities, and investing.
Most Web3 users, though, talk to each other under fake names or usernames. This means that Web3 companies, protocols, and even traditional businesses that want to operate legally need to follow local laws. Some of these rules are about keeping money from being laundered and about “Know Your Customer,” or KYC, which means that you have to know who your users are. That’s where Equifax comes in. They have the know-how to make sure that everyone who uses a given platform is properly identified, which builds trust between all parties and protects their privacy at the same time.
Equifax’s digital identity trust and secure multifactor authentication solutions will be used to verify users and make sure they are following the rules. Then, Oasis will use its own privacy-protecting features to make sure that each person’s identity data stays private, is processed separately from apps, and is never shared with a third party. Only the fact that KYC and AML compliance have been met will be shared.
The solution gives enterprise and business customers an identity verification system that checks documents, matches a selfie to an ID, and adds users in accordance with AML and KYC. Anyone who has ever signed up for an online bank account or another financial service online has probably gone through this process of verifying their photo ID, address, and other personal information.
The founder of Oasis Labs, Professor Dawn Song, said, “We are working to not only build a better, more efficient decentralized identity and on-chain KYC solution, but also to help speed up the adoption of Web3 and bring more trust to the industry.” “Equifax is an innovative leader in the financial services industry. It brings highly credible and reliable data that will help increase trust in real-world applications of blockchain technology.”
All of a user’s personal information is processed by Oasis Labs’ secure data infrastructure, which links it to a digital wallet. With this solution, users can keep their privacy by using fake usernames and addresses for their wallets. This helps Web3 companies stay in compliance with AML and KYC regulations and keep user trust.
Joy Wilder Lybeer, U.S. information solutions chief revenue officer at Equifax, said, “As the Web3 economy continues to grow and change, so does the need to grow and change identity management and KYC solutions to help reduce risk and build trust in on-chain transactions.”