ONCHAINID

The #ERC3643 is renowned for enabling always-on compliance for asset #tokenization. But how does that work? 🤔 #Compliance is established through ONCHAINIDs, identity smart contracts enabling verification of investors’ eligibility through self-sovereign digital identities on the blockchain. #ONCHAINID operates with verifiable credentials 👉 digital claims, similar to proofs, signed by authorized entities ensuring the authenticity of the user’s qualifications or status, such as KYC/AML checks. This mechanism offers an on-chain validation process while preserving privacy. It doesn't expose any private data on the blockchain. Instead, it logs results of compliance checks as simple 'yes, qualified' claims. ERC-3643 tokens contain a compliance validator smart contract that only allows transactions when a recipient’s ONCHAINID shows they have the required eligibility claims. Let's take an example of the KYC verification process using #ONCHAINID and #ERC3643: 1️⃣ Claim issuers Interaction: The KYC provider receives the user’s data off-chain. 2️⃣ Claim Issuance: Once verified, the KYC provider issues a claim to prove the user’s KYC status, sending it to the user's ONCHAINID. 3️⃣ Transaction Request: During a transaction request, the ‘isVerified()’ function checks whether all required claims are present in the user’s ONCHAINID. 4️⃣ Transaction Approval: The transaction can only proceed if all necessary claims are verified within the user’s ONCHAINID. To conclude, ERC-3643 guarantees verified claims while safeguarding user privacy by keeping personal data off-chain, ensuring: ✅ Compliance ✅ Privacy protection Learn more in the ERC-3643 Deep Dive report: https://bit.ly/4bgEAXX #RWA #RealWorldAsset #Tokenization #ONCHAINID