The crypto and DeFi space are often trustless and faceless. No one has to trust each other while undertaking transactions in the decentralized finance ecosystem. But to strengthen the decentralization of the platforms it is imperative that a system ensuring innovative models of trust and social identification are set in place.
Trustlessness and Decentralization go hand-in-hand with each other. There is no requirement for the counterparties to trust each other while interacting with each other. But the ability to trust the other party will only make the interaction more secure which in return makes trust necessary in a few instances and allows users to escape hacking, fraud, etc, unharmed.
For example, a single user can generate thousands of digital identities through tools like Cointool within 30 seconds through a one-click process. The user can interact with the same application through multiple wallets. Such users can claim airdrops multiple number of times by interacting at different times from multiple wallets. In a few instances, airdrops of Uniswap, 1inch, etc were received by the same users through multiple claims from different wallets.
The Blockchain technology and DeFi space will not be able to reach their true potential until the issues relating to identity are acknowledged and resolved.
Proof of humanity protocol brings some ease to the counterparties involved.
What is Proof of Humanity?
Proof of humanity helps in creating a Sybil-proof list of humans. Sybil resistant or Sybil proof means no duplicates and bot-proof. A Sybil-proof list of humans is created through social verification and video submissions. This is a point-of-entry for individuals to access new use cases that require proof about the identity of the individual and the assurance that they are not fake or duplicate or bot accounts. The proof of humanity system will be affixed into new and existing applications looking to integrate the system of verifying identities on their platforms.
Let’s take a look at the use cases of Proof of Humanity.
A. Universal Basic Income (UBI)
UBI is a system for distributing periodic payments to everyone in a given population with no strings attached. UBI is earned universally i.e., accrued by all the profiles registered on the proof of history registry making it a universal income currency.
Proof of history registry equips UBI with an absolute universal and fair distribution for UBI projects as the sole requirement to be eligible to receive it is to have a verified profile on the proof of history registry.
B. Innovative DAO frameworks
There are instances where one user can vote using different and multiple wallets and thus influencing the proposal with respect to any protocol. True votes cannot be counted and a biased voting system is set in place.
With the help of the proof of humanity registry, DAO frameworks and apps can check the ‘humanity’ aka accept 1 vote against 1 user and put in motion a Sybil-resistance voting system.
UBI DAO will be based on a governance system where the humanity of voters will be checked in order to better gauge the voices of every community member. Such a system can be integrated with common DAO tools like Aragon, DAOstack, etc.
C. Universal Identifiers and Self-Sovereign Identities
How effortless would it be if different dApps and protocols identified users without any registration? The profiles or accounts created on the Proof of Humanity registry can be used as a universal login method and users will be identified on various dApps and platforms directly through their verified profiles uploaded on the Proof of Humanity registry.
Other existing identity-adjacent protocols like Ethereum Name Service (ENS) or Serto.id can work with POH and add Sybil-resistance to profiles uploaded and verified on the POH registry.
D. Certification and Reputation Systems
Details like different certifications or reputation points can be included in the verified profiles on the POH registry.
Users will have the option to select the certifications that they want to be made public or kept private. Confirmations regarding these certifications or reputations points (eg. credit score) can be confirmed through central authorities and the same can be displayed as badges on the individual profiles.
Examples of Certifications are; Academic Qualifications, Skills, Country of Citizenship, and any other certifications.
E. Sybil resistant Airdrops, Yield Farming, and NFT Distributions
Airdrops were prone to Sybil attacks as the same user would claim them through multiple wallets. Even after acquiring proof of identification through telegram, passports the airdrops were not free of Sybil attacks.
This led to the change in how airdrops were distributed, users had to lock in their already existing tokens, and on the proportion of tokens locked the airdrops were distributed which led to the benefit of the users holding a high amount of crypto.
With proof of humanity plugged in, airdrops will be distributed equally between all the participants. The same Sybil-resistant mechanism can be followed in Yield Farming and NFT drops.
F. Anti-Spam Tools
Captchas used by systems often waste a user’s time and they still can not keep out determined spammers from entering the system. People in the POH registry will be permitted several catch-free interactions. And users spamming the system can be banned from the platform and they will not be able to create other accounts to evade the ban.
The above use cases list is non-exhaustive and POH has many more applications.
Collaboration between POH and EPNS
POH provides WEB 3 foundational services as it enables users to maintain digital decentralized certifications and attach them to their verified profile on the POH registry. Other scores like credit scores and skills are attached to the Self-Sovereign Identities.
On uploading the profile on the POH registry, the profile submission can be in either of the stages:
The verification process of the profile goes through multiple stages and it becomes of utmost importance for the user to check the progress made by their uploaded profile. Push notifications received by these POH users can provide users with real-time updates about :
A. In case the profile of existing users are challenged thus enabling users to take prompt action and save their profiles from being removed from the POH registry.
B. New evidence for their claims submitted by the challenger.
C. Progress made in the profile verification process.
D. Confirmation received from central authority about decentralized certifications uploaded by users.
E. Upcoming Expiration date of the profiles.
This collaboration will play a fundamental role in the development of the EPNS and Proof of Humanity protocols.
Sign up on CoinDCX now, the leading Indian Crypto Exchange.