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cheqd, a startup whose solutions let users and organizations control their identity data, has unveiled its latest product. Credential Payments will slot into its existing SaaS product, known as Credential Service, and support an onchain market for trusted data trading.
Trusted data describes the sort of information that for natural reasons its subjects would rather remain private. Identification documents, medical records, and work history all fall into this category. Like any type of data, however, there are instances where it needs to be accessed by third parties. Creating a solution that enables businesses to acquire this data, without exposing its contents to the risk of unauthorized access, is a challenge cheqd believes it has mastered with Credential Payments.
Public Payments, Personal Privacy
As a web3-focused startup, cheqd is only too familiar with blockchain’s ability to transfer not only money but also data. Just because you can place something onchain, however, doesn’t mean you should. This is particularly true in the case of trusted data, whose very nature necessitates that it is kept out of reach of all but authorized parties. With Credential Payments, cheqd has found a way for this data to be traded onchain without its contents being placed there.
The data itself is stored of-chain, while payments between data vendors can be conducted onchain, with the buyer receiving the assurance that the data they are purchasing is verifiable and complete. cheqd’s speciality is integrating tools for Self-Sovereign Identity (SSI) into organizations’ existing infrastructure, allowing them to benefit from decentralized identities without disruption. Credential Payments will thus fit into this model, making it possible for businesses to access trusted data pertaining to customers without loss of user privacy.
Beneficiaries of Credential Payments are therefore not limited to enterprises in need of customer data for services such as KYC: the customer also stands to benefit in being freed from having to undergo multiple verification checks. After completing KYC with one vendor, a customer can then do business with a different organization, which acquires their trusted data from the original vendor. Not only does this result in a more streamlined experience, but it reduces the opportunities for identification documents to be stored and potentially leaked online.
From Identity to Discovery
While compliance is an obvious use case for the sort of trusted data Credential Payments will support, it’s not the only application. Another one that cheqd has been keen to emphasize falls within the realm of education. Here, there’s long been a need for verifying that individuals are who they claim to be with the credentials they claim to have. cheqd believes that employers and other entities seeking to verify candidates’ qualifications will be able to use its solution for this purpose. The verifier would pay a small fee to access the credentials in question, creating a two-sided marketplace for trusted data while reducing fraud.
As the data economy grinds higher, and governments roll out new and occasionally conflicting data regulations, the need for identity solutions that work globally has intensified. This is no mean feat, mandating compliance with such initiatives as the EU’s eIDAS 2.0 to similar legislation in the US. Companies that can navigate this complex market and deliver solutions that make data transactable without stripping end user privacy will flourish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.