Polkadex collaborates with KILT Protocol and Fractal to Provide Decentralised KYC Solution.
Initiative Will Build Upon Fractal’s Growing Base of 140,000 Users
28 January 2021, Berlin, Germany and Tallinn, Estonia — Fractal, KILT Protocol and Polkadex today announced a partnership to create a decentralised KYC system for exchange customers. Polkadex and Fractal will use the KILT Protocol as the underlying infrastructure for managing the KYC credentials required by Polkadex, to simplify and streamline the onboarding experience.
KILT Protocol will integrate Fractal’s user-centric KYC/AML platform, which is built for compliance with global, regulated industries. BOTLabs GmbH (the company behind KILT Protocol) will provide a wallet as a browser extension for customers to hold their credentials, and make the wallet available to Polkadex for verification. Fractal and Polkadex will integrate KILT’s SDK to build out the platform.
The onboarding flow will be as follows:
- Fractal will automatically issue KILT-Credentials to Fractal’s current user base of 140,000 users who have previously KYC’d
- Polkadex will ask new users for credentials
- If the user has no credentials, they are directed to download and set up KILT’s wallet
- If a user is not verified, Fractal guides them through identity verification and attests the KYC credentials when complete
- When the user’s identity is verified, Fractal stores the credential hash on the KILT blockchain.
Decentralising the KYC Process
Polkadex is a fully decentralised, peer-to-peer, orderbook-based cryptocurrency exchange for the DeFi ecosystem built on Substrate, the same framework that powers Polkadot. To solve the problem of order matching with identified individuals, Polkadex uses a zero-knowledge proof of identity obtained from the KILT blockchain.
KILT Protocol stores customer data in a distributed manner, without giving any provider undue advantage through data aggregation. By integrating KILT, Polkadex does not need to store or access customer data or compromise their privacy to identify people.
“We envision a world of financial inclusion, creating bridges that transfer value from traditional money markets to a decentralised store of value and trust, thereby preparing the world for a tokenised future. KILT is a great way to achieve that without compromising the core principles of decentralisation,” said Gautham J, CEO of Polkadex.
KILT is an open-source fat blockchain protocol for issuing claim-based verifiable credentials that enable trust business models in a Web 3.0 marketplace. Built on Substrate, the protocol has multiple business applications and KILT is currently exploring partnerships in the energy, genetics, gaming and finance sectors.
“The alliance with Fractal and Polkadex is the first of many turnkey solutions the KILT ecosystem will offer for exchanges and DeFi projects. We’re proud to be part of substantive ecosystem collaborations with Substrate and Polkadot builders,” said Ingo Rübe, CEO of BOTLabs GmbH and Founder of KILT Protocol.
KILT and Fractal have collaborated for the past three years. Fractal has been utilised by many exchanges and ICOs, and is now developing an advertising marketplace that replaces the tracking cookie and gives control back to users. Fractal’s open-source protocol provides a standard for a fair and transparent exchange of ad information that will enable a data commons while ensuring data privacy.
“We are excited to see decentralised identifiers being used beyond the concept stage. It will be a great user experience and hopefully a kickstart for a more decentralised web,” said Julian Leitloff, Co-founder and CEO of Fractal.
Fractal is an identification company. We are replacing the ad cookie to give users back control over their data. Fractal wants to create a data commons that will enable fair competition against a market duopoly with valued users and trusted ads. Fractal was founded in 2017 and is trusted by 140k verified crypto users.
About KILT Protocol
Polkadex is a fully decentralised, peer-to-peer, orderbook-based cryptocurrency exchange for the Defi ecosystem built on Substrate, the same framework that powers Polkadot. It enables high-speed trading, high liquidity, and lightning-fast transaction speed for supporting Defi applications and services.
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