What is an On-Chain Identification
On-chain identification is the digital representation of an individual or entity’s identity and related information that is stored and verified directly on a blockchain or distributed ledger. It is a decentralized and immutable record of personal or organizational details that includes a diversity of information spanning from public keys, name, and address, to credentials, educational history, interests, certifications, and activities.
On-chain identity systems are poised to enhance security, privacy, and trust in digital interactions by eliminating the need for central authorities like governments and corporations to verify identity.
A key feature that sets blockchain-based identification apart from traditional forms of ID is the user control and ownership of data. Users can selectively disclose information on an as-needed basis which allows for a heightened level of autonomy and minimizes the risks associated with data breaches.
Downfalls of Traditional Forms of Identification
Blockchain-based IDs aim to provide a solution to the security limitations that make traditional forms of identification subject to fraud, falsification, and security breaches. Governments are in an eternal battle against counterfeit IDs, which can be perfectly manufactured to mimic authenticity, and updated with the latest technological advancements.
Beyond governmental concerns, individuals being issued identification through centralized systems are potentially vulnerable to significant risk levels. In the event of a security breach, the extensive personal and biometric data now mandated during the ID application process becomes susceptible to exploitation by hackers.
Real-World Applications of Blockchain-Based IDs
In 2020, South Korea began its initial phase of integrating on-chain identity systems into daily life. With the goal of implementing a country-wide blockchain-based ID system by 2024, Koreans began with blockchain-based drivers licenses. These connect to PASS, Korea’s smartphone application, and eliminate the necessity of a physical card. Within three months of the program's launch, already one million South Koreans had switched over to on-chain IDs.
Another notable use case of on-chain IDs can be seen in the government of Maharashtra, the second most populated state in India. In 2023, the government began issuing Polygon-based caste certificates to help citizens access government-sponsored benefits and subsidies. These on-chain IDs can be verified instantly, and have already been issued to 65,000 citizens with an end goal of serving 1.1 million citizens facing economic hardships.
The Future of On-Chain Identity and Business
The secure and transparent nature of blockchain-based identity has the disruptive potential to transform the landscape work. Harnessing blockchain technology for identity and credential verification heralds a future in which hiring processes and business partnerships operate without the need for intermediaries or the threat of fraudulent claims.
POAP, or the Proof of Attendance Protocol, is an innovative platform for storing memories and credentials on-chain. From colorful badges that serve as event mementos to stamps of attendance that can be used as immutable proof of participation, POAP has developed a protocol that addresses both the social and professional elements of blockchain-based interactions.
From a business standpoint, protocols like POAP represent a paradigm shift in the way job applicants are evaluated and scanned for suitability. Rather than relying on a resume that can be easily falsified and employment references that can be equally fraudulent, on-chain credentials serve as untampered evidence of real-world activities and qualifications.
The same is true for partnerships and collaborations; through immutable records of an individual or entity’s participation in events, conferences, and projects, no third-party verification is needed to validate credentials.
On-Chain Professional Identity and the RiseID
Rise is an all-in-one payroll and compliance solution that leverages blockchain technology for trustless transactions and streamlined global compensation. Built for traditional companies and web3-native organizations alike, Rise enables payments in fiat and crypto, and supports both treasuries held in traditional bank accounts and digital wallets.
A key feature of the Rise ecosystem is the RiseID, a self-sovereign professional identity connected to the user’s wallet of choice (Metamaks, Ledger, MyEtherWallet, Taurus, Coinbase Wallet). The RiseID leverages the ERC-725 token standard, a blockchain-based identity standard on the Ethereum blockchain.
This unique smart contract minted by each user allows contractors and businesses to identify themselves, store immutable professional data, and authenticate transactions from Rise’s payroll smart contracts.
The RiseID is deployed on the Arbitrum blockchain and is fully owned by the individual or business. Along with the attributes it stores (including work history, KYC data, credentials, and more) the RiseID, can travel across applications, executing on-chain smart contracts, and serving as a digital passport across blockchain protocols.
For contractors and employees, in addition to storing personal data, a principal function of the RiseID is the secure withdrawal of payouts. After minting their RiseID, payees can instantly withdraw funds in both fiat in crypto- across a selection of 90 fiat currencies and 100 cryptos.
Organizations issuing payroll through the Rise platform can use their RiseIDs to issue automated, mass payouts to contractors and employees worldwide. In the case of a company with multiple managers involved in payroll, a single business RiseID can have multiple wallets and/or security keys added on as delegates.
Book a demo today to unlock the future of secure, transparent, and scalable payroll and compliance with Rise.