DITO: Decentralized ID for Tokenization
The problem: There is currently no satisfactory DID standard for tokenized assets
Existing attempts to create a Decentralized Identidier (DID) standard for the tokenization ecosystem have fallen short due to:
- Vendor lock-in attempts.
- Profit-driven motives.
- Technological limitations.
These issues hinder mainstream adoption and create barriers to interoperability.
The solution: DITO – Decentralized ID for Tokenization
- A base layer for DID enabling standardization and interoperability between framework participants (i.e. KYC/ accreditation providers, security token platforms and exchanges, dApps).
- Ability to build on top of the base layer to fit local regulatory requirements.
- Based on Polygon’s ID technology of issuing verifiable credentials.
- Open to any KYC or accreditation provider.
- Available for free for any dApp.
- Not tied to a single company, protocol, vendor ecosystem.
- Not a source of revenue for DITO participants.
Tech summary
- Identities are presented by a unique identifier called Decentralized Identifier
- Identity based information is represented via Verifiable Credentials (VCs)
- PolygonID is powered by the Iden3 protocol which is compatible with any Ethereum Virtual Machine (EVM) blockchain
- Open to any KYC or accreditation provider
- The Iden3 protocol enables users to generate Zero Knowledge Proofs (ZKPs) maximizing privacy of the Identity Holder
Key participants in the DITO framework
- Issuer - An entity that issues verifiable credentials - (KYC Providers)
- Identity Holder - An entity that holds claims to the verifiable credentials - (Users)
- Verifier - An entity which verifies the proof presented by the Identity Holder - (Tokenized Platforms, Exchanges, dApps)
User Journeys
- First Time: Without Verifiable Credential
1
Joins a Verifier’s platform.
2
Completes KYC with DID issuer.
3
Receives a Verifiable Credential.
4
Purchases permissioned tokens (such as security tokens).
- Subsequent Times: With Verifiable Credential
1
Joins any Verifier’s platform.
2
Automated on-chain verification in real time as User connects wallets.
3
Purchases permissioned tokens (such as security tokens).
First steps
- DigiShares and Polygon are collaborating to create an extension of Polygon ID’s verifiable credentials.
- Two leading KYC providers, Sumsub and Fractal ID, are joining the new framework.
- Initial support for Polygon, Ethereum and their test-net counterparts, as well as Metamask and several other wallets
Further steps
- Seek feedback from the ecosystem.
- Get as many issuers, platform providers, exchanges, KYC providers, and dApp developers as possible to adopt DITO and make it the main DID standard.
- Incorporate accreditation checks within the framework.
Learn more about DITO
Webinar: Empowering Interoperability in Tokenization with Decentralized Identity - by QualitaX
Get valuable insights into the collaboration and the potential impact of DITO on the DeFi and tokenization landscapes.
Press Release: Polygon and DigiShares to Collaborate on Creating Decentralized ID Framework for the Tokenization Ecosystem
“The credential framework proposed by DigiShares is the key factor to the introduction of interoperability between KYC providers, exchanges and platform providers. KYC providers Sumsub and Fractal ID will be among the first to be integrated into the new standard.”
Webinar: DITO (Decentralized ID for Tokenization Framework) - by Polygon & DigiShares
Get valuable insights into the collaboration and the potential impact of DITO on the DeFi and tokenization landscapes.
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