Self-Sovereign Identity for more Freedom and Privacy - SelfKey
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The Benefits of SelfKey iD

In today's digital world, online transactions and communication have become the norm, making digital identity verification a crucial aspect of online security and compliance. While KYC has been an effective method for verifying the identities of users and clients, it has some significant drawbacks that cannot be ignored. To address these issues, SelfKey iD proposes a potential solution that could revolutionize identity verification.
28 Mar 2023
SelfKey

Summary

Nowadays, most individuals operate in a digital environment where transactions and communication are made online. As a result, digital identity verification has become a very important aspect of online security and compliance.

KYC (Know Your Customer) is one of the most widely used methods for verifying the identities of users and clients. While KYC has been effective in assuring security and regulatory compliance, it has some significant drawbacks. KYC can be time-consuming, expensive, and difficult for users, potentially resulting in losing customers and missing business opportunities.

SelfKey addresses this issue by proposing a potential solution with SelfKey iD. 

SelfKey iD is a revolutionary approach to identity verification that could be faster, more secure, and less costly than traditional KYC methods. It uses the power of blockchain technology and smart contracts to potentially offer a secure, decentralized, and efficient identity verification process. This can possibly eliminate many of the issues associated with traditional KYC methods.

With SelfKey iD, users can create a self sovereign identity that they can control, giving them more privacy and full ownership over their personal data.

In this article, we will elaborate on the drawbacks of traditional KYC methods. We will also examine the advantages of SelfKey iD, its features and benefits compared to traditional KYC. Additionally, we will explore the potential impact of SelfKey iD on the future of digital identity verification.

Highlights 

  • KYC: Potential Issues to Consider
  • The Benefits of SelfKey iD
  • High-Level Flow
  • Quick Relying Party Onboarding
  • The Issuance: SelfKey iD NFT User Flow
  • The Verification: SelfKey iD User Onboarding
  • Reusable KYC and SelfKey iD
  • SelfKey iD New Project Setup
  • Conclusions

KYC: Potential Issues to Consider

Even though KYC has become a commonly used procedure in many industries, it has its drawbacks.

Here as some examples:

  • The collection of personally identifiable information (PII) for KYC purposes comes with legal responsibilities and storage costs, which can take a toll on companies. 
  • Users have a tendency to dislike KYC checks, finding them intrusive and time-consuming. This can lead to lower conversion rates and a negative first impression for potential customers. 
  • Implementing KYC can be a difficult and expensive process, further adding to its disadvantages. 

Perhaps the time to consider alternative ways of verifying customer identities has come. With SelfKey iD, you can explore methods that are less tedious for all parties involved.

The Benefits of SelfKey iD

As stated above, KYC processes can be inconvenient for both companies and customers alike. However, SelfKey’s Ai-Powered Proof of Individuality method along with SelfKey iD can potentially become a better alternative to KYC.

Here are some of SelfKey.iD’s benefits: 

  • The overall process is easier and less costly, making it more accessible for users. 
  • The onboarding process is quick.
  • Ongoing monitoring makes sure that customer data remains accurate.
  • Existing KYC checks are reused, thus the need to collect and store PII repeatedly is no longer an issue.
  • Costs for companies are reduced, but, at the same time, customer privacy and security are improved.
  • It provides powerful compliance tools, ensuring that companies remain in compliance with regulations and laws. 

By using SelfKey iD, companies can streamline their KYC processes, reducing costs, enhancing customer privacy, and improving compliance. Ultimately, this results in a better experience for customers and a more efficient and secure system for companies.

Below, we will discuss some of SelfKey iDs benefits more in depth.

High-Level Flow

SelfKey iD enables zero-knowledge interactions between individuals, making sure that users' data is kept private and secure. With SelfKey iD, the user's private information does not reach your server. This adds to user privacy and prevents potential data breaches.

Furthermore, the onboarding process is quick and simple. 

When a user with a SelfKey iD visits your server, they are checked to determine if they match your filter. If they do, they can be onboarded instantly, simplifying the process and reducing the time and resources required.

By using SelfKey iD, companies can provide a secure and efficient onboarding process that prioritizes user privacy and security. The zero-knowledge interactions and instant onboarding features make it a better alternative to traditional KYC processes.

Quick Relying Party Onboarding

To streamline the onboarding process, the following steps are required:

  1. Sign up at SelfKey iD to create your user filters.
  2. Add these filters to your smart contracts.
  3. When a user attempts to run your smart contract function, the system will check if they have a SelfKey iD NFT. If they do not have one, they will be prompted to get one.
  4. If the issuer has a SelfKey iD NFT, they will then be able to verify whether the user matches the filter that you have set for the transaction. If they do, the user will be granted access to your server. If not, the user will be denied access.

Following these steps, companies can implement a more efficient and secure onboarding process that prioritizes user privacy and security. 

SelfKey iD's NFT-based system ensures that only authorized users are given access to the company's services. This reduces the risk of relying parties allowing access to unauthorized individuals to their system.

The Issuance: SelfKey iD NFT User Flow

The issuance process for SelfKey iD is outlined below:

  1. The user visits your project and is redirected to SelfKey iD, in case they do not already have one.
  2. The user pays for the verification check.
  3. The user goes through the verification process, and the issuer stores their data. Ongoing monitoring of the account begins.
  4. If the user passes the checks, the issuer releases a credential that verifies the user's humanity, uniqueness in the database, and verified data.
  5. The user then mints their own SelfKey iD NFT.

By following these steps, users can obtain a SelfKey iD NFT that verifies their identity and potentially provides access to various projects that use the SelfKey iD platform. 

The verification process ensures that only authorized users are granted access, providing enhanced security and privacy for both users and companies.

Likewise, enhanced security offers several benefits, such as:

  • Anti-bot security. This measure prevents automated attacks by detecting and blocking suspicious or malicious bot traffic.
  • Fraud protection. Bots are often used for fraudulent activities like creating fake accounts or generating false clicks to generate revenue. Implementing anti-bot security measures helps to identify and prevent such fraudulent activities, keeping the business and customers safe.
  • Improved user experience. Bots can significantly hinder the user experience by slowing down websites or making it difficult for users to access information. Anti-bot security measures ensure that legitimate users can access the website or service without interruptions or delays.

The Verification: SelfKey iD User Onboarding

The onboarding process for SelfKey.iD is as follows:

  1. A user with a SelfKey iD visits your project.
  2. You request that the SelfKey iD issuer checks the user's information.
  3. The issuer verifies whether the user's data matches your filters.
  4. The issuer sends a signed message confirming the user's status. 
  5. If the user is verified, they can be onboarded, and the signed message can be used to authorize transactions.
  6. The relying party (issuer) is billed for the verification check.

Through this process, companies can implement a more efficient and secure onboarding method that prioritizes user privacy and security. 

SelfKey iD's NFT-based system makes sure that only authorized users are granted access to the company's services. The use of a signed message adds an extra layer of security, offering further assurance that the user's data has been verified by the relying party.

Reusable KYC and SelfKey iD

The benefits of using reusable KYC with SelfKey iD are as follows:

  • Your project subscribes to SelfKey iD.
  • Your project can be featured on the SelfKey iD website.
  • A user with a SelfKey iD NFT visits the SelfKey iD website.
  • The user scrolls through the list of projects that support SelfKey iD.
  • The user can potentially choose your project from the list.
  • The user quickly onboards to your project using their existing SelfKey iD NFT.
  • Your project profits from the seamless onboarding experience.

SelfKey iD's reusable KYC system could provide companies with a more streamlined onboarding experience for users. Users can easily access multiple projects without having to go through the time-consuming and costly process of verifying their identity each time.

Additionally, companies benefit from increased user adoption and loyalty, as the reusable KYC system encourages users to choose projects that support SelfKey iD. Overall, this system offers a win-win situation for both companies and users alike.

SelfKey iD New Project Setup

Setting up a new project with SelfKey iD is quite easy. Below, we will detail a few steps which you need to consider.

The project onboarding process is as follows: 

  1. Go to the SelfKey iD website.
  2. Register for a new account.
  3. Add your company privacy policy to your account.
  4. Choose a subscription pack that suits your needs.
  5. Set up filters to verify your users' identity.
  6. Your project is now ready to implement the filters into your system.

SelfKey iD's easy-to-use platform could offer companies a quick and efficient way to set up their project's identity verification process. The platform provides a range of subscription plans to choose from, depending on your business's specific requirements. 

With the ability to customize filters for your users, you can ensure that only authorized individuals can access your platform, enhancing security and trust. 

Overall, SelfKey iD's new project setup process offers a simple and effective solution for individuals looking to integrate identity verification into their systems

The Library Implementation

To implement SelfKey iD into your project's system, follow these simple steps:

  1. Implement the backend library onto your server.
  2. Prepare the front-end to handle calls for authorization.
  3. Implement the SelfKey iD smart contract into your own smart contract.
  4. Your project is now ready to onboard users.

After completing these steps, you can integrate SelfKey iD into your project's system and take advantage of its powerful identity verification capabilities. With the backend library in place, your server will be able to communicate with SelfKey iD to authorize user access. 

By integrating the smart contract into your own contract, you can ensure that only authorized individuals can access your platform, boosting security and trust. 

All in all, SelfKey iD's library implementation process offers a robust solution for businesses looking to enhance their identity verification capabilities.

How the Profile Builder Functions:

SelfKey iD's Profile Builder is a tool that allows you to create customizable filters for your project. These filters could be used to sort and manage users based on specific criteria.

The Profile Builder allows you to create multiple filters, which can be implemented separately on your project. This means that you can have different filters applied to different sections of your app or website, depending on your specific needs.

For example:

  • You could create a filter that accepts citizens of Country A for one section of your app, but another filter for the same project that excludes citizens of Country A from another section. 
  • This level of detailed filtering allows you to match regulatory requirements while also boosting the benefits of your app.

To set up the Profile Builder, you would first define the standards you want to filter by, such as citizenship, age, or profession. You can then apply rules and conditions to each filter to create a customized sorting system.

For the most part, the Profile Builder in SelfKey iD could provide a flexible and powerful tool for managing user data and creating a tailored experience for your app's users.

Conclusions

SelfKey aims to provide a comprehensive solution that addresses the needs of both businesses and users. 

The benefits of SelfKey iD could include efficient, secure, and cost-effective KYC checks, streamlined onboarding, and better conversion rates. Additionally, SelfKey iD's approach to privacy ensures legal compliance and reduces costs associated with PII storage. 

Even more, with a user-friendly one-time KYC process and access to multiple projects on the website, SelfKey iD offers convenience and ease of use for users. SelfKey iD's project features and powerful user filtering tools could enable businesses to match rules and increase profitability. 

Stay up to date with SelfKey on Discord, Telegram, and Subscribe to the official SelfKey Newsletter to receive new information!

 

SelfKey Protocol is maintained by a DAO of SelfKey iD Holders. Join us and help revolutionize identity management in Web3!
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Note: 

We believe the information is correct as of the date stated, but we cannot guarantee its accuracy or completeness. We reserve the right not to update or modify it in the future. Please verify all information independently.

This communication is for informational purposes only. It is not legal or investment advice or service. We do not intend to offer, solicit, or recommend investment advisory services or buy, sell, or hold digital assets. We do not solicit or offer to buy or sell any financial instrument. 

We use the "KYC" term here for general information purposes, without reference to particular legislation. Please check the laws relevant to you and contact us for the details.

This document may contain statements regarding future events based on current expectations. However, some risks and uncertainties could cause results to differ. The views expressed here were based on the information that may change if new information becomes available.

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