The European Commission announced its selection of Iota’s Web3 Identification solution for its current edition of the European Blockchain Sandbox initiative (EBSI). 

On June 13, the EU Commission announced the selected participants for the second cohort of its EBSI. Among those chosen is Iota, an open-source distributed ledger and cryptocurrency ecosystem.

Iota’s selection highlights its Web3 ID solution, developed in collaboration with Walt.id, IDnow, Bloom Wallet, and HAVN.

Iota said that this selection is a significant milestone for its identity solution.

“It opens the door to regulatory discussions about KYC and privacy in a Web3 environment. This is especially relevant now that many regulators are considering their approach to decentralized finance (DeFi).”

The EBSI was launched in 2023 by the EU Commission to serve as a testing ground for distributed ledger technology (DLT) solutions across multiple industries.

Each cohort comprises of no more than 20 projects, which are then given a controlled environment for testing and validation, along with opportunities to engage directly with regulators from across the EU.

Sandbox projects

Alongside Iota, selected projects include the RealEstate.Exchange (REX) DigiShares, the documents and business-focused blockchain DoxyChain, the smart contract and blockchain security analysis project Hacken and the AI-centric knowledge infrastructure project Origintrail.

Related: EU elections 2024: Pro-crypto parties pick up seats amid Green losses

Iota’s specific Web3 ID solution use case is trying to reform the traditional method of implementing Know Your Customer (KYC) processes, often bogged down by inefficiencies, high costs, and privacy concerns.

The solution is to implement a reusable KYC system via DLT and tokenization to enhance both security and user control over personal data.

According to the developer, the process begins with remote identification conducted by IDnow, which ensures user compliance with EU Anti-Money Laundering (AML) and KYC regulations.

Digital ID solutions

In the case of Iota’s Web3 ID solution, the verified identity is tokenized and stored in the user’s wallet as a soulbound token that can be used across various Web3 applications to verify identity without exposing personal information.

This comes as the EU actively seeks to implement a digital ID scheme. On May 21, it updated its European Digital Identity (EUDI) regulation, initially released in February 2023, with full implementation requirements by 2026.

It requires member states to provide at least one EU digital identity wallet to all citizens and residents.

The digital ID wallet is designed for electronically signing and storing documents, ranging from university diplomas to train tickets. It is seen as the next evolution in the way European citizens live and work.

Already, some ideas for its creation and implementation have been discussed, such as the possible use case of zero-knowledge proofs.

While not specific to Europe, the TON blockchain ecosystem has allocated $5 million of Toncoin tokens to incentivize users to verify their identity using state-of-the-art palm scanning technology — all of which signals a trend in the industry of finding a solution for digital identity in an increasingly digital world. 

Magazine: SocialFi boosts game revenue, Axie Infinity creator wants to ditch Discord: Web3 Gamer

Read More: World News | Entertainment News | Celeb News
Cointelegraph

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

‘The race is on’ for AI: Nvidia CEO bullish as Q2 revenue tops estimates

Shares of computer chip manufacturer Nvidia soared nearly 10% in after-hours trading…

TON flips ETH in daily active users, but that’s not the full picture

Telegram’s “The Open Network” (TON) blockchain has recorded more daily active addresses…

Boosting adoption with DeFi asset management: Velvet Capital joins Cointelegraph Accelerator

Gone are the days when decentralized finance (DeFi) was a niche for…

Kentucky Gray Games Ban Bill Faces Murky Future After House Tables It

Posted on: March 4, 2023, 06:03h.  Last updated on: March 4, 2023,…