Please describe your proposed solution.
There is a growing interest in reusable identity verification credentials, which may include formal identity document and biometric checks, social account verifications and more.
The resulting “reusable KYC”, or “web3 passport” offers enormous potential benefits to users, companies and ecosystems: easy sign-up and sign-in, cost savings, fraud-reduction, bot-prevention, increased trust, higher conversion rates, etc.
Therefore, our proposal assumes that “reusable KYC” or “web3 passport” will add value, be adopted and help drive adoption of the participating services.
Our proposal also builds on the existing reusable KYC implementation between ProofSpace and Veriff, which is already being implemented by a handful of companies and ecosystems.
THE PROBLEM
Problem 1
Identity verifications are not reusable, which means that each organization has to duplicate the IDV process, and so does the end user. This brings inefficiencies to the organizations and the users.
- The standard pricing model for IDV providers is to charge “per check”. The more checks consumed, the lower the price per check.
- This pricing model is optimal in industries like financial services, where regulations cause the financial institution to incur a liability for customers they onboard. Compliant KYC / AML procedures are required for each applicant to be approved as a customer.
- For environments where there is no or less stringent regulation or where an ecosystem leader is incentivized to accept liability on behalf of other ecosystem participants, one company may rely upon the identity verification that was completed by another company - let’s call this “reusable KYC” for the sake of simplicity.
- In this instance, this model creates a duplication of costs and duplication of user experience bottlenecks
- This is the problem we want to solve with reusable KYC.
Problem 2
The stakeholders in an ecosystem need to trust that the IDV credential was generated through a trusted process and by reputable entity (e.g. Veriff), that the issuer of the credential is a trusted entity within the ecosystem and that the onward use of that credential is appropriate to the privacy requirements of the end users and the business requirements of the ecosystem companies. These complex variables are resolvable through governance. This is the problem we want to solve with the Governance Framework.
Problem 3
Governance Frameworks for decentralized ID are, in and of themselves, technical documents which require specialist experience to generate. Each ecosystems that does not have this expertise may incur unnecessary delays and costs in generating a new Governance Framework. This is the problem we want to solve by making the Governance Framework for this proposal available as a template which any ecosystem can adopt.
THE SOLUTION
The solution is a reusable KYC credential which is supported by a clear Governance Framework.
It requires a comprehensively developed decentralized ID stack, including the backend, front-end and user interfaces for issuers, holders and verifiers; APIs for integration into IDV providers and other third-party systems; and capability for custom configuration of each implementation.
It also requires an identity verification solution with APIs and SDKs (including UI) for integration into the SSI stack; a suite of verification tools for document, biometric, liveness, PEPs & Sanctions that are KYC/AML compliant; compatibility with the world’s identity documents; and capability for custom configuration of each implementation.
Finally, it requires a Governance Framework template that can be reused and configured by different ecosystems depending on their requirements.
There are two parts to the solution:
- Technical integration
- PS-Veriff: this is complete
- ProofSpace provides a fully developed SaaS decentralized ID platform (website)
- Veriff provides one of the leading global IDV stacks (website)
- ProofSpace has integrated Veriff into its platform, and is already actively deploying this integration with customers (demo)
- As such, the Cardano community doesn’t need to take a risk on a complex R&D processs to build out the IDV solution and SSI stack and then integrate those components - it’s all ready to go.
- PS-PRISM-Veriff
- Migration of ProofSpace onto PRISM 2.0
- Enabling the PS-Veriff integration to deploy the PS-PRISM integration together
- Adjustments to PS platform schema standards to include technical attributes such that the resulting KYC credentials are interoperable regardless of the network being used.
- Governance framework template for reusable KYC
- Develop a template governance framework that can be easily used by ecosystems looking to implement a reusable KYC
- This template will cover the following sections:
- Primary Document
- Introduction
- Terminology and Notation
- Localization
- Governing Authority
- Administering Authority
- Purpose
- Objectives
- Scope
- Key Roles
- Key Processes
- Out of Scope
- Principles
- Governing Documents
- Trust Assurance and Certification
- Credential Types and DID methods
- Credential Schemas
- Trust Registries
- Assurance Levels
- Risk Assessments
- Governance Requirements
- Interoperability Requirements
- Business Requirements
- Information Trust Requirements
- Inclusion and Accessibility Requirements
- Legal Agreements
WHO WE WILL ENGAGE
Aside from the key parties (ProofSpace, Veriff and Atala PRISM), ProofSpace will engage potential customers of the solution (which could be any Cardano community project with a need for trust between remote parties) on two fronts:
- Participation in the development of the governance framework
- Commitments to the adoption and integration of the solution on a commercial basis
HOW WE WILL DEMONSTRATE IMPACT
The immediate impact of the Catalyst funding will be to have that production-ready solution available for adoption. Ultimately the impact will be demonstrated through the adoption of the solution in the community, resulting in cost-savings for companies, greater trust between stakeholders, reduced risk of fraud, and greater adoption of PRISM verifiable credentials.
HOW WE ARE UNIQUE
Our proposition is unique because:
- Significant progress made already: we’ve already done a lot of the heavy lifting through forming a legal relationship between ProofSpace and Veriff, integrating their two technologies and deploying them in the market (demonstrating the efficacy of the solution). As such, the Cardano community really gets value for money through this proposal - a ready solution which just needs to be adapted to PRISM credentials and wrapped with the appropriate governance architecture.
- Combining production-ready, commercially available solution with the governance framework template removes the barriers to adoption and enables swift implementation.
Benefits to the cardano community are covered in the next section.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
This proposal comprehensively addresses the challenge by proposing a technical solution that is production ready, backed by a robust business plan and enabled by a governance framework.
Key challenge clauses and our response
- Solve the business coordination and stakeholder challenge in parallel with the technology implementation effort.
ProofSpace and Veriff have already made significant progress on business cooperation and will continue to collaborate to maximise the impact of the solution for the web3 audience. PRISM will become an active participant in the technology effort. ProofSpace has implemented PRISM 1.4 and continues to work closely with the PRISM team.
- This challenge is to identify targeted stakeholders within the product concept, Allocate funds for the developers to converse with stakeholders, convene or join a working group (i.e., Governance Framework Working Group at ToIP), consider and analyze a structured ecosystem, publish a report, and work on the next steps to develop the next feature of the intended project.
- Stakeholders: ProofSpace, Veriff, PRISM and customers
- Convening the stakeholders: ProofSpace will act as the coordinator and will work through ToIP working group format to convene the stakeholders (Veriff, ProofSpace, PRISM with potential for existing ecosystem partners to join) through a series of monthly meetings
- Structured ecosystem: the objective of the governance framework template will be to provide a wire frame of rules, documents and standards for ecosystems wishing to adopt and implement this solution.
- Next steps and development: we will be actively pursuing customers during the project period.
- In addition to having a great team, product roadmap, milestones, and execution plan (all of which we have) we look for successful proposers to execute the following as part of the business plan:
- Complete the Atala PRISM Pioneer Program: COMPLETE
- Complete a Governance Framework workshop: PART OF PROPOSAL
- Establish or join a Governance Framework working group at Trust over IP, or another host organization: PS ARE MEMBERS OF TOIP
- Identify stakeholders including issuers, holders, verifiers, policy makers, and their business requirements: PART OF PROPOSAL
- Establish a cadence of meetings and contribution and convene a home for parties to adopt and participate in the Ecosystem and Ecosystem Governance: PART OF PROPOSAL
- Progress towards publishing a Governance Framework: PART OF PROPOSAL
- Develop a Proof of Concept, Pilot, or commercial launch: PART OF PROPOSAL
Value to Cardano Community
As mentioned in the section above, our proposition is unique because we’ve already done a lot of the heavy lifting through forming a legal relationship between ProofSpace and Veriff, integrating those two technologies and deploying them in the market (demonstrating the efficacy of the solution). As such, the Cardano community gets excellent value for money through this proposal - a ready solution which just needs to be adapted to PRISM credentials and wrapped with the appropriate governance architecture.
In the big picture, it’s important for Cardano because it will help any project that is considering ID verification to implement this without significant R&D, integration and business development costs.
The solution is in demand from projects with concerns about regulation (DeFi, DEX, crypto), concerns around user authenticity and reputation (DAOs, education, employment), projects handling sensitive personal data (legal, health, etc.), and projects with ethical identity requirements (gaming and gambling). We already have several such projects in the pipeline.
The solution helps the Cardano community move forward by addressing a practical identity requirement immediately, with a future-proof solution that is adaptable to complex emerging standards and regulations.
How do you intend to measure the success of your project?
- Within the scope of the proposal timeline:
- Customers will be able to deploy PRISM version 2.0 through the ProofSpace no-code platform, using those credentials in IDV interactions.
- A governance framework template will be published as a resource for ecosystems wishing to implement this (or any other) IDV solution.
- Once the proposal is complete:
- # of projects using the solution
- # of IDV credentials issued
- # of IDV credentials verified
- Feedback that the security of projects is greater
- Feedback that the UX is excellent
Impact on Cardano productivity and growth
- Short-term:
- Opportunity cost saving: by taking care of the R&D, integration, standards and best practices around SSI and IDV, ProofSpace saves Cardano projects from undertaking the same duplicative and highly specialized activities.
- Productivity impact: by providing the solution as a SaaS offering, the community gets easy access to a practical and valuable solution through a business model that aligns with their unit economics - i.e. the pricing works for start-ups and major enterprise alike so that all projects can accelerate their path to market.
- Growth impact: increased conversion rates for community projects resulting from the secure, private and easy UX offered by the solution (see the demo)
- Long-term:
- Cost savings on duplicative identity checks through credential reuse
- Increased engagement with and between projects due to higher trust, reduction in bad actors, fraudulent behaviour, bot activity, etc.
Please describe your plans to share the outputs and results of your project?
The solution is and will continue to be advertised on ProofSpace website. Once the project deliverables are completed, links will be provided on the ProofSpace site (perhaps in our Knowedge Base) to explain the solution and its accompanying resources.
ProofSpace provides an easy option to speak to our team through our website and any one will be able to reach out and adopt the solution through that medium.
We will also publicise the deliverables of the project through our social and professional accounts, as well as on community meetings such as Town Hall if we are invited to do so.