- Creds offer a valuable advantage, enabling individuals to create a profile linked to their own blockchain digital wallet.
- Cheqd created Creds as an alternative to generating nonfungible tokens since NFTs are publicly minted on the blockchain and linked directly to user wallets, potentially compromising their anonymity.
Cheqd, a provider of privacy-protecting Web3 payments and trust infrastructure, has announced the launch of Creds, a novel solution for portable, decentralized identity and reputation management that can be utilized across various communities.
Leveraging blockchain technology, Cheqd empowers users with self-sovereign identity, granting them complete control over their personal data. With this approach, individuals can selectively share relevant details for verification, ensuring enhanced privacy and seamless identity portability.
Web3, also known as the decentralized web, is built on blockchain technology and has given rise to numerous communities centered around cryptocurrencies like Bitcoin, Ethereum and token-based reward systems in games. However, this ecosystem exposes users to potential scams and the risk of losing their hard-earned tokens. In contrast, Creds offers privately held identities, providing users and communities the assurance of engaging with genuine individuals, thereby adding significant value to the concept of identity in this domain.
Eduardo Hotta, Head of Marketing and Community at Cheqd, said, “More and more organizations are looking to become community-focused to take advantage of the rising community economy. As an example, it’s preferable to have a smaller number of real active community members, or superfans, than to have a group with thousands of bots.”
Creds offers a valuable advantage, enabling individuals to create a profile linked to their own blockchain digital wallet. This facilitates reputation building within any community, with the flexibility to share this information selectively, granting permission only to chosen recipients. While Creds utilize publicly available blockchain technology, the data they safeguard remains private, ensuring the security of users’ personal information.
Communities, events, games, and websites can employ Creds to incentivize participation by distributing them to attendees. Subsequently, users can leverage these Creds, which come with their identity attached, akin to nonfungible tokens, to unlock various benefits. The crucial distinction lies in Creds verifying a user’s identity and connection to the community. Consequently, users can enjoy privileges such as VIP event access, exclusive forum sections, coupons, and more.
To illustrate, an event could issue a Cred credential to an attendee, certifying their presence at the event. This information can be stored in the person’s blockchain wallet and utilized as part of their profile or displayed to others as a form of recognition. Similarly, online communities can reward their early users, supporters, donors, and others with Creds, allowing them to privately or publicly share these accolades to enhance their reputations.
Cheqd created Creds as an alternative to generating nonfungible tokens since NFTs are publicly minted on the blockchain and linked directly to user wallets, potentially compromising their anonymity. NFTs are cryptographic tokens representing various digital assets, like video game items, images, or memorabilia. Similarly, soulbound tokens (SBTs) function like NFTs but cannot be exchanged between users.
Fraser Edwards, Co-founder and Chief Executive of Cheqd stated, “Creds offers a privacy-preserving alternative to the surveillance-enabling tech of SBTs and NFTs where you have little control over your privacy. Creds are collectible, portable, secure, and verifiable; it has all the best things that the NFT and SBT have with the addition of everything else they are missing.”
Over the years, Web3 companies have actively investigated decentralized identity to achieve single sign-on functionality and establish portable reputations. Single sign-on, akin to using centralized accounts like Facebook, Google, or Microsoft to access multiple web pages or accounts, takes a different form with a decentralized identity. In this context, there is no centralized authority governing the information.
Several organizations, comprising Wipro Lab45 from Wipro Ltd., Spruce Systems Inc., and Unstoppable Domains, have created decentralized identity solutions. Additionally, Carv, a startup specializing in identity solutions, has introduced a reputation-based solution tailored for Web3 gaming and applications.