The Key To Mainstream DeFi Adoption Is Decentralized DID

Decentralized identity (DID) and compliance services will become a “key infrastructure” to the success of decentralized finance (DeFi) and the transition of real world financial assets onto the blockchain according

Decentralized Finance (DeFi) is a financial service that uses cryptocurrency and it can be programmed through smart contracts to build exchanges, lending services and insurance services without the need for a loan centralized management.

According to the CEO of Quadrata, decentralized identity will open Web3 to a wide range of services that require personal information and allow platforms to offer tailored products.

Quadrata provides a Web3 identity solution that allows users to perform KYC compliance without sharing personal data, it recently partnered with Ethereum Layer-2 Polygon scaling solution to integrate the Web3 Passport Network mine.

In addition, According to Fabrice Cheng, CEO and co-founder of Quadrata the main driver of demand for DID will come from Web3 protocols, which will use the user’s DID to build better products that “serve” existing customers and also “target” to a new group of customers.

DID refers to self-owned, independent proof of identity that can be used to access services that require such information at the discretion of the user. Personally identifiable information such as a user’s name, age or ID document number will be anonymized to the services only when it is found that the user’s DID has been verified by a trusted party.

The issued proof of identity varies between protocols, but Quadrata’s solution, the Quadrata Passport, is represented as a nonfungible token (NFT).

DeFi is the biggest potential use case for DID, a major advantage that DID has over traditional identity solutions is that it only needs to fill out the KYC once.

Before the DID solution becomes fully effective for DeFi, it should be noted that the Web3 wallet infrastructure to improve to the point where both retail and institutional users can navigate the wallet and feel comfortable roof when you have the right monitor their money.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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