DeFi services provider AllianceBlock is hopping aboard the self-sovereign identity bandwagon, announcing the launch of a new self-custodial identity solution called Nexera ID.
Self-sovereign identity is an approach to digital identity that enables users to fully control the information they use to prove who they are to websites, services, and applications across the web. SSI, as it’s known, allows people to interact with greater freedom and trust, safe in the knowledge that no one can access their personal information.
The key thing about SSI is that the power to control personal data resides with the individual, who can selectively choose how much or how little information they wish to share about themselves. Nexera ID utilizes novel trustless identity verification technologies to enable SSI in the world of Web3. Its solution is said to be based on a soul-bound MetaNFT token that allows users to prove who they say they are while keeping their personal information secure. To do this, it relies on a technique known as zero-knowledge proofs.
Nexera ID explained
With Nexera ID, users can choose to undergo KYC or KYB with a single, trusted provider to create a verifiable, on-chain identity that can then be used to access hundreds of different Web3 services. This identity can be verified by any service the user signs up for. Crucially, it won’t reveal their personal information, yet at the same time, it will satisfy the demand from services for users to verify themselves. Nexera ID can integrate with multiple KYC and KYB providers, AllianceBlock said.
The launch of Nexera ID built on top of Nexera Protocol marks our biggest step forward in giving power back to users in protecting their assets and privacy, and towards our greater mission to bridge the gap between decentralized and traditional finance,” said AllianceBlock CEO & Founder Rachid Ajaja.
The great thing about SSI and Nexera ID is that it does much more than allow users to prove themselves. The solution can integrate with any kind of crypto wallet, including both custodial and non-custodial offerings, to enable seamless logins for Web3 dApps through familiar credentials such as email, social login, or facial recognition. In this way, AllianceBlock said Nexera ID could help to overcome one of the biggest headaches in Web3.
Perhaps the best thing about Nexera ID though is its potential to help users protect their digital assets. Fear of losing access to a crypto wallet is a big problem in the industry. To retain control over digital assets like Bitcoin, Ethereum and other tokens, users are required to store them in a non-custodial wallet that’s only accessible via a “seed phrase”, a random string of words that’s similar to a pass phrase. This is a headache for many crypto users because the responsibility falls entirely upon them to keep a copy of that seed phrase somewhere safe. If lost, there is no other recourse to recover crypto assets.
Of course, the need to safely store a seed phrase prevents many people from using crypto because they don’t trust themselves with this responsibility. The alternative is to use a custodial wallet, but as events like the recent collapse of FTX prove, this is not a safe option either.
Thankfully, Nexera ID’s self-sovereign identity solves this problem, allowing users to create a customized recovery mechanism for any wallet or digital asset. With it, users no longer need to worry about safely storing a seed phrase, and can instead regain access to their funds via traditional verification methods.
Nexera ID is available now and can integrate with any kind of crypto wallet, transforming it into a programmable smart wallet that enhances users’ safety and privacy.
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