The European Commission chose Iota Web3 ID for the blockchain sandbox
The European Commission has announced that it has selected the iota Web3 authentication solution for the current edition of the European Blockchain Sandbox Initiative (EBSI).
On June 13, the European Union Commission announced the shortlisted participants for the second batch of EBSI. Among the chosen ones is Iota, an open source distributed ledger and cryptocurrency ecosystem.
Iota's selection highlights its Web3 ID solution developed in partnership with Walt.id, IDnow, Bloom Wallet and HAVN.
Iota said this election is an important milestone for the identity solution.
“It opens the door to regulatory discussions about KYC and privacy in the Web3 environment. This is especially important now that many regulators are considering their approach to decentralized finance (DeFi).
EBSI was launched in 2023 by the European Union Commission to serve as a testbed for distributed ledger technology (DLT) solutions in various industries.
Each group consists of no more than 20 projects, which are given a controlled environment for testing and validation, with opportunities to interact directly with regulators from the European Union.
Sandblasting projects
Alongside Iota, selected projects include the RealEstate.Exchange (REX) DigiShares, the document and business-oriented blockchain DoxyChain, the smart contract and blockchain security analysis project Hacken, and the AI-centric knowledge infrastructure project Origintrail.
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Iota's unique Web3 ID solution use case is trying to improve the traditional way of implementing Know Your Customer (KYC) processes, which are often plagued by inefficiencies, high costs and privacy concerns.
The solution is to implement a reusable KYC system through DLT and tokenization to improve both security and control of user's personal information.
According to the developer, the process begins with a remote identification managed by IDnow, which ensures the user's compliance with EU Anti-Money Laundering (AML) and KYC regulations.
Digital identity solutions
As for the Iota Web3 Identity solution, the authenticated identity is stored in the user's wallet and can be used as a soul-based token to verify identity without exposing personal information to various Web3 applications.
This comes as the EU actively seeks to implement a digital identity scheme. On May 21, it updated the European Digital Identity (EUDI) regulation, originally released in February 2023, with full implementation requirements by 2026.
It requires member states to provide at least one EU digital ID wallet to all citizens and residents.
The digital ID wallet is designed to electronically sign and store documents from university diplomas to train tickets. It is seen as the next evolution in the way European citizens live and work.
Already, some ideas about its creation and implementation have been discussed, for example the use case of zero-knowledge proofs.
While not unique to Europe, the Ton Blockchain ecosystem has allocated $5 million in TonCoin tokens to encourage users to verify their identity using modern palm scanning technology – a trend in the industry for solutions. Digital identity in an increasingly digital world.
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