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Identification for DeFi
Proofi unburdens DeFi projects with the complexity of having to comply with KYC regulations.
You don’t need to store the client’s home address or maiden name.You only need to know if the person is legally permitted to participate in your project.
Normally, a project needs personal information to match it against a set of requirements to ensure a wallet holder is allowed to participate. With Proofi, the project makes these requirements public, entrusting identity providers to take care of the verification.
The verification process only returns true or false, not revealing any personal data. Each verification response is timestamped, signed, and anchored.
In case a regulatory authority formally requests a participant's information, the project is able to rely on the identity provider to supply the necessary information. This allows projects to comply with increasingly strict regulations while safeguarding users' private data.
Always get legal advice from a legal professional within your jurisdiction. Identity providers can only operate within the boundaries of a project's terms and conditions. And only if a participant has formally agreed to those terms.
Proofi has a closed trust network of identity providers. All identity providers are required to operate in the same way to ensure a project is able to comply with local regulations regardless of the chosen provider.
It's always up to the project to choose which identity providers it entrusts (opt-int). Accepting more providers means more users are able to skip the KYC procedure during the onboarding procedure. However, the project must ensure that there's no conflict between the jurisdiction of the DeFi project and that of the identity provider.
The project chooses a default identity provider. In case the wallet owner is not known to any of the trusted providers, the user will go through the KYC procedure of the default provider.