globaliD is a company founded in 2016.
February 8, 2022
We’re thrilled to announce that the XDC Network is integrating GlobaliD, one of the first DeFi projects to leverage GlobaliD’s decentralized identity solution.
The XDC Network is a hybrid, enterprise-ready blockchain with public and private architecture and is compatible with the Ethereum Virtual Machine (EVM).
DeFi or decentralized finance experienced explosive growth in 2021 with volume growing 912 percent year on year, according to Chainalysis data. At GlobaliD, we see DeFi as a core pillar to the future of web3 with the potential to democratize finance.
That massive growth has also shone a light on issues such as fraud, money laundering, and terrorist financing.
Money laundering spiked 30 percent in 2021, according to Chainalysis, with DeFi protocols receiving $900 million from illicit addresses.
DeFi projects typically rely on non-custodial wallets that aren’t tied to an identity and forgo KYC (know your customer) protocols altogether. Part of the issue is that relying on traditional identity frameworks undermines the decentralized vision for DeFi. Ignoring those procedures has driven DeFi’s frenetic growth, but it’s also attracting increasing attention from regulators.
SEC chief Gary Gensler has stated on more than one occasion that projects are still required to follow relevant regulations — no matter how “decentralized” they are.
Allowing any unidentified wallet to connect to and participate with the platform also opens DeFi projects up to bot attacks and bad actors.
This is where the natural symbiosis between decentralized finance and decentralized identity comes in.
GlobaliD’s self-sovereign identity solution allows DeFi projects to address their identity needs while maintaining the decentralized spirit of their vision.
Meanwhile, DeFi users used to being anonymous or pseudonymous can rest easy knowing that they control their digital identity, and that no one — including GlobaliD — can access their encrypted data without their permission.
Why self-sovereign identity matters
From the XDC Network press release:
As Layer 1 networks, like XDC Network, continue to roll out mainstream solutions, there is an increasing need for users to be able to bridge identity with on-chain solutions for fast and secure verification. This is where the GlobaliD integration can address today’s identification challenges by providing self-sovereign ID (SSI) for passwordless login to XDC Network’s leading dApps, protecting users from bots, scams, and bad actors. By combining GlobaliD’s reliable, trusted SSI with the XDC Network’s array of decentralized finance (DeFi) and dApps services, users now have a more safe and secure way to access XDC’s growing web3 ecosystem with a pathway for regulatory compliance.
And here’s Billy Sebell, Head of Ecosystem Development for the XDC Network:
As Web3 matures, enabling users to roam across networks without constant identification holdups is going to be crucial. Mainstream users shouldn’t have to understand the complexities of safe IDs and network bridging — nor should they bear the responsibility of complex identity management. Integrating GlobaliD with our new XDC Observatory creates the foundation for a streamlined user experience and represents a big step forward towards chain interoperability
GlobaliD users will also have access to a brand new feature called the XDC Observatory, a block explorer that enhances data management and accessibility on the network.
This integration with XDC Network and DeFi is just the beginning at GlobaliD. We’re looking forward to working on a slew of upcoming applications of self-sovereign identity for financial tools, NFTs, and more.
Given web3’s nascent state, we believe these partnerships are the key to building a web3 ecosystem that stays true to our values while building bridges to the rest of the world.
If your DeFi project is looking to incorporate decentralized identity, we encourage you to reach out to us: email@example.com