Transak and Privado ID partner to pioneer decentralized KYC reusability

Transak, a leading Web3 payment provider, is collaborating with privacy-focused decentralized identity platform Privado ID (formerly Polygon ID) to support a new decentralized authentication service called “Reusable KYC.”

This Know Your Customer (KYC) sharing service is designed to enhance and improve the decentralized authentication process, increasing overall Web3 onboarding processes.

“We are excited to partner with Privado ID to pioneer the future of decentralized authentication. “This collaboration embodies the principles of decentralization by allowing users to control their own identity data,” said Yeshu Agarwal, Transak’s chief technical officer.

The Transak executive added that leveraging Privado ID’s cutting-edge zero-knowledge (ZK) technology provides a new framework that sees a “scalable and secure solution” for on-chain authentication.

Transak introduces KYC as a Service

As highlighted in today’s announcement, KYC Reusable will benefit a wide range of users and industries globally, including exchanges, real-world asset (RWA) platforms and Web3 gaming. According to Transak, these are some of the organizations that already have stringent compliance controls but want to ensure user privacy.

Transak introduced KYC as a Service as part of its collaboration with Privado ID to help grow the ecosystem. The company says this product aims to simplify user authentication.

It works by integrating Privado ID with Transak’s KYC infrastructure, allowing users to complete KYC processes only once. After that, access to verified credentials occurs on-chain.

In this case, the user’s data is stored in a decentralized token that is created after the user completes his KYC at Transak. Once the transaction is completed, the user needs to scan this token and store it in the Privado ID wallet. The data then becomes accessible on-chain. Users easily share them via Transak’s popular one-click KYC sharing service.

KYC sharing helps eliminate duplicate KYC processes, offers user control and increases data privacy, among others.

Transak’s “Proof of Uniqueness” is another important innovation in this collaboration. The main idea is that Proof of Uniqueness provides a unique verification mechanism that can help projects greatly improve reward distribution or airdrops.

In crypto, one of the biggest challenges with aids is Sybil attacks; This is the scenario in airdrop farming where individuals try to cheat distribution systems with multiple wallets.

Proof of Uniqueness means projects can target people, not wallets, thus eliminating major challenges associated with Sybil attacks. Besides PoU, Transak and Privado ID want to work on areas such as proof of humanity, proof of residence, and proof of age.