Decentralized identity (DIDs) on Solana
Problem to Solve:
1. DeFi Protocols, particularly Real World Asset players on Solana like Credix still rely on centralized Identity services.
2. The absence of an identity model poses its own problems and stunts the growth of crypto finance: it prevents broader commercial and institutional adoption, blocks key use cases and market opportunities, and risks legal non-compliance.
Addressing these issues requires a new privacy-preserving decentralized identity model. Although there is Civic on Solana, however, it's not institutional-friendly and is more focussed on gating and permissioning for communities, instead of real-world financial use cases.
Possible Solution:
An open-source framework for proving identity claims in Web3 without exposing sensitive personal information. Web apps, mobile apps, and smart contracts get the benefit of identity-verified participants from the simple check of the on-chain credentials. The use of ZKPs (Zero Knowledge Proofs) can be explored to verify the talent’s identity - ensuring that neither identity protocol nor the company is ever able to view their personal information.
The following can be the potential use cases:
Institutions can engage with the DeFi ecosystem using identity protocols and meet regulatory requirements
Marketplaces, exchanges, and smart contracts can validate customer identity without storing personal identity data
Lending protocols can use decentralized credit and risk scoring to reduce collateralization requirements. This can unlock much-needed uncollateralized lending on-chain
A payroll and compliance tool that enables Solana-based companies to hire pseudonymous talent, without compromising legal obligations.
Resources:
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