Blockchain technology has the potential to solve a number of real-world problems, from improving supply chain management to providing more transparent peer to peer transactions. However, one of the more interesting, and pervasive, applications relates to identity management and security, a multi-billion dollar market. As more and more attention is drawn to how centralized entities mismanage sensitive personal data, many now look for decentralized alternatives.
One blockchain project with an intriguing alternative is Civic, which is building an ecosystem that is designed to facilitate on-demand, secure, low-cost access to identity verification services via the blockchain. Civic’s Secure Identity Platform allows users to have complete control over their identity for multi-factor authentication on the web and on mobile apps, without the need for usernames, passwords, or third-party companies that are prone to hacking. What’s more, the Civic platform leverages token-based rewards to incentivize trusted institutions, like banks or government entities, to verify identity information, which is ultimately stored on the blockchain and used to streamline future KYC requests.
Interested in Civic? Here’s a quick rundown of the project:
Platform & Development
In short, Civic’s platform will improve the identity verification supply chain by reducing the overall cost of KYC, enhancing data security and privacy and removing the staggering inefficiencies. The Civic process is fairly simple:
- Users capture and record their personal identification data directly on the Civic app. This includes both physical and digital forms of identification, as well as next-generation tools like biometrics used for data access and security.
- Once identity data is provided by users, Civic uses multiple identity validation service providers and a suite of fraud detection algorithms to verify submitted data against phone, credit, social media and other public records. Validators can come in a few different forms, ranging from financial institutions to government entities.
- When users are active on a Civic-enabled platform that requires KYC, whether it is purchasing an airline ticket or participating in an ICO, that platform will send a request for user-specific KYC data via the Civic Marketplace, paying an amount of Civic token (CVC) per request.
- Validators then request the specific user information through custom QR codes to be scanned via the Civic App. The users can make the decision to approve or deny any request, allowing for voluntary information exchange.
- Once the validator confirms user identity, it then sends attestations to the blockchain and receives CVCs in return. This authenticated data is then added to the User’s Civic APP for future KYC.
It’s important to note that the Civic Marketplace offers a platform for attestations to be shared between verification service provides, in order to reduce costs, compensate participants in the ecosystem, and keep users in full control of their personal data. Smart contracts enable validators to offer their attestations for sale to service providers, and service providers to determine which validators are offering attestations and at what price.
While Civic’s ICO was conducted on the Ethereum blockchain, the Civic tokens are not meant to run on Ethereum, but instead were designed to be used on Bitcoin with Rootstock. Once Rootstock implementation is completed this year on Bitcoin network, Civic will be ported to the Bitcoin Network and leave the Ethereum blockchain forever.
In addition to incentivizing data transactions, users who own the Civic token (CVC) will have access to a number of additional tools and services made available on the platform, including:
- Services to run personal background Checks
- Blockchain notary services
- Dark web monitoring
- Peer-to-peer identity services
The Civic platform is currently in beta, where they are gearing up to begin enrolling identity providers. The full platform should be available by the end of 2018, where all participants can submit orders across the marketplace.
Civic (CVC) currently has a market cap of ~$115 million with a circulating supply of 342,699,966 CVC and a total supply of 1,000,000,000 CVC.
Civic is arguably the premier project tackling identification security and utilization on the blockchain, and the applications of its fully-functional platform are wide-reaching. Civic is led by seasoned entrepreneurs, has a growing number of strategic partnerships, and should ultimately see major value creation once adoption goes mainstream, as long as the utility of its platform token improves.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.