PassChain

Inspiration

What it does

How we built it

Challenges we ran into

Project Passchain

Problem Statement: There is only one existing web3 library or API for KYC that is readily available and easy to use. ○ For developers, it’s undesirable to spend time building out a custom KYC solution instead of focusing on their core product. ○ For end users, it’s undesirable to enter KYC info in multiple sites. With our product, they would only need to enter their KYC once. ○ For verifiers, it’s desirable to be paid. ● Problems with Accounts: Account Names vs. Real Names ○ Accounts can be abandoned; Real names can’t abandon them to escape debts, indictment, etc. ○ Accounts can have several names; Each person only gets one, can’t create a second. ○ Accounts can be transferred; Real Names are not allowed to transfer or sell it to someone else. ● Real name identities are required for: ○ exchange services ○ even cryptocurrency ATMs ○ ... many others ● Problem 1: Privacy-Preserving in Least-Authority way: Anonymity /Pseudonymity ● How can we achieve one-person-one-account without requiring real name identity? ● Problem 2: Incentivization / Tokenization ● What type of user behavior do we want to incentivize to: ○ Increase adoption ○ Increase integrity of information ○ Increase usage ○ Help streamline DeFi identity verification and authentication process ○ Reduce processing cost ○ Save time ● How can we incentivize the users for usage of the Passchain?

● Problem 3: ● What new blockchain tools can we build to create a new ecosystem for reputation, verification and authentication? ○ Without relying on an authoritative credit score ○ Traditional Identification tools (Government ID, SSS, Birthdate, etc.) ● Problem 4: Sybil Resistance -- helps ensure that each person in an ecosystem only has one credential/account

Solution: KYC Solutions:
Proof of Personhood (PoP)/ Humanity (PoH) is a participation and Sybil attack resistance method for permissionless consensus, in which each unique human participant obtains one equal unit of voting power and associated rewards https://en.wikipedia.org/wiki/Proof_of_personhood a. Proof of Responsiveness (PoR) - i. captcha, video, image recatcha, etc. ii. In-person events iii. Identities networks iv. Reverse Turing Test b. Proof of Identity (PoID) - https://en.wikipedia.org/wiki/Proof_of_identity_(blockchain_consensus) i. Proof of Biometric ii. Legacy Credentials
Government ID
Social Graph (i.e. Social Media)
Reputation Sites
Can-do Decentralized Identity (CanDID): a. Privacy: Committee learns only attested data b. Legacy compatibility: No web server modification c. Unlimited attestation types: Any web data can feed attestation d. Using CanDID to bootstrap credentials from legacy authorities. CanDID is meant to provide an identity system which provides the following capabilities: i. Bootstrapping identity, using legacy data [flexibly!]. ii. Key management / ability to re-issue iii. Sybil-resistance (one-person-one-ID) iv. Support for regulation compliance iii. Anonymous Credentials - ZKSNARK -Zero-Knowledge SNARK - a cryptographic proof that allows one party to prove it possesses certain

information without revealing that information. This proof is made possible using a secret key created before the transaction takes place. It is used as part of the protocol for the cryptocurrency, Zcash. c. Proof of Personhood (PoP) - i. Webs-of-Trust

Attestation model a. b. c. d. e. f.
Product or Service: Introduce to these problems. Federation and Transitive Trust (“friend of a friend,”“I trust anyone Bob orDave trusts up to $20”) Credentials based on digital signatures Privacy. What does the issuer learn about the Subject’s interaction with Relying party? Availability. Can the Issuer prevent the interaction? Revocation. Does the Issuer have the ability to revoke the attestation? Does the Subject? Meaning. What does the attestation say? Does the Issuer guarantee it’s accurate? your company's product or service as the ultimate solution ● Verification System for Proof of Unique Personhood-as-a Service (PruPaaS) or (PPaas) ■ API ■ Platform ● Use Cases ○ Antispam ○ Airdrops ○ Quadratic funding ○ Certifications ○ Credit scoring
Timing - Why now? ○ Reason 1 - Why is “now” the best time for your company to rise and go to the next level? ● Legal / Political Recent Development - “Ensuring Responsible Development of Digital Assets” - executive order urges the federal government to analyze the benefits and risks of cryptocurrency by outlining six key priorities - consumer and investor protection, financial stability, illicit finance, US leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation. ○ Feasibility of US Central Bank Digital Currency that could be

connected with the central banking system. ○ Recognition by the US Government for cryptocurrency as an emerging, legitimate, and serious asset class that the US will want to foster while mitigating the risks and will be an essential part of the US economy. ○ Countries have opened up for crypto adoption - El Salvador, Ukraine ● Reason 2 - What are the trends these days that make your product or service possible? ● Technological Infrastucture / Ecosystem Development - Cryptocurrency has gained massive traction among investors in recent years. Crypto has gained ground of lots of Dapps being developed and lots of users getting their own web3 wallet sand wanting to connect to the Dapps. ● Reason 3: Tired of Spammers, NFT Drops, Compliance

Incentivization ○ What type of behavior to we want o incentivize and why? i. Correctly identifying the user ○ How do we incentivize the user? i. Token ii. Rewards on the number of attestations, or credentials they provide.
Quadratic Scoring - the more attestation, the higher the tier level and more tokens that they can receive exponentially.
Integrity Points - reward to the user if they provide easily verifiable documents/ credentials ○ How do we incentivize the verifiers/validators?
Quadratic Scoring - the more attestation verification / , the more tokens that they can receive exponentially.
Integrity Points - reward to the verifier if they provide easily correct and validated verifications
Tokenization: ○ User (person being validated) - gets token for uploading valid credential (i.e. quality of the docs/credentials/attestators, etc. ○ Business Partner (Validator) - gets token for correctly validating a user
Target Market ● Who are the customers you want to cater to? ● Target Market 1 - What are their profiles and visual personas? ○ Technology Companies - Web3 Developer Applications ○ Financial Companies

○ Healthcare Industries ○ Manufacturing ○ Non-Profit End Users - Senders and Receivers (i.e. Freemium) ● Target Market 2 - Visualize the people who will turn to you for solutions. ○ Customers (i.e Developer for Businesses for subscription, etc.) ● Target Market 3 ○ Business Partners

Size of the Market: i. The market, which had a size of 72 billion dollars in February 2021, grew rapidly and exceeded 170 billion dollars in November. It has now surpassed the level of 106 billion as of February 23, and its growth in the last 1 year has been 47%. ii. https://www.yahoo.com/now/defi-market-rise-47-growth-114400683.html#: ~:text=The%20market%2C%20which%20had%20a,are%20AVAX%2C%2 0LUNA%20and%20WBTC. iii. NFT Drops -
Competitors: ● Direct Competitors
CivicPass: https://www.civic.com/pricing/ ● Indirect Competitors: ○ These require the user to perform an installation or run their own node ■ Selfkey and Sovirn ○ These aren’t running in production or require a real-time meeting to sign up ■ https://blockster.global/products/credebl/ ■ https://atalaprism.io/app/ ■ https://bloom.co/documentation/vc-common/getting-started ■ https://kyc-chain.com Selfkey. org Sorvin.o rg Blockst er blockste r.global Atalapri sm CivicPa ss - civic.co m Bloom.c o Kyc-Ch ain.com Passch ain No User Installati on Require d X X X X X X
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    Productt ion Ready
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X X X X X X X X Doesn’t Require Real time Meeting to Signup X X X X Python client library x Login | Multifa ctor Authen tication (MFA) X X Livene ss Verifica tion X X Email Verifica tion/Su pport X X Biomet rics & Livene ss Check X X

Docum ent Verifica tion with Level 1 Fraud Check X X Quadratic Scoring Algorithm Integrity Rewards
Competitive Advantages ● Advantage 1
No User Installation Required
Production Ready
Doesn’tRequire Real time Meeting to Signup
Python client library ● Advantage 2 Algorithm for Integrated Verification Methodologies: ● Attestation ● Reputation ● Quads Scoring and Scoring System ● Biometric Verification ● Personhood ● Advantage 3 ● Incentivization Methodology - how we provide incentives to users and verifiers ● Tokenization

● Advantage 4 A company with strong competitive advantages are likely to survive in the long term. ● Tier Level Credential - (i.e. single star to platinum / gold level) 11. Competitor Approach ● Approach 1 - How will you set your company from the competition?

Getting more partners and validators through online communities, reddit, discord, hackathons, conventions, events, token airdrops,
Making it easy to onboard and user experience / interface
Rewarding/incentivizing users and validators more
Clear Verified Credential Tier Level for users
Certifying users based on credentials
Transparent methodology of ranking users based on credentials 12.Revenue Model Revenue Source:
Customers (i.e Developer for Businesses for subscription, etc.) - pay the Passchain platform for the verification
End Users - Senders and Receivers (i.e. Freemium)