A new business-centric blockchain is trying to find a place in this highly competitive market by focusing on an integrated digital identity system.
Call Concordium, the blockchain, is among the first to use proof of identity as an integral part of their protocol. Cointelegraph spoke to Beni Issembart, Concordium’s Chief Marketing Officer, to learn more about this system.
Issembart said that “the question of identity is what we have thought was missing in the entire discussion about the blockchain enterprise.”
At first glance, the blockchain is constructed similarly to any other, with the hashes that represent the wallet accounts being generated randomly. But These accounts can then be linked to “Identity Objects,” which are unconscious evidence that indicates that the particular account has been verified.
An external observer cannot actually trace this identity object back to a specific person or entity because it remains encrypted. But there’s a twist: governments can decanonymize users if necessary.
Identities are verified by Know Your Client providers that are tailored to the respective nation. Identity providers store personal data behind a user ID reference and issue an identity certificate, which is then stored in encrypted form on the blockchain.
A series of chain anonymity revocations nominated by the Concordium Foundation can decrypt these certificates to extract user identification. Governments can use the identifier with the identity provider to reveal real world data. The two-step process ensures that neither revocators nor identity providers can assign blockchain transactions to a specific person, at least not alone.
While Issembart said some details of the de-anonymization process are still ongoing, governments will need specific and official mandates such as court orders to request user data.
“We’re on the privacy side of the story, and for us it’s a fundamental right that needs to be protected by law and also by technology,” he said. As an example, he added, “If the IRS comes to the US, we will not open the doors. Only when there is a court decision will we work together. “
Concordium is clearly a business-oriented blockchain, but it is open to everyone. When asked if the project expects average cryptocurrency users to adopt this “backdoor” system, Issembart said:
“As a former Bitcoin maximalist and now as a Beam maximalist, definitely not. Under no circumstance. We are not naive. “
He stated his opinion that the cryptocurrency community is divided into two branches. There are the “ethical people or the maximalists who are here for the idea” and then there are the speculators who “would not understand what we are doing”.
Concordium is primarily aimed at newcomers – individuals and companies who could not come together without an appropriate regulatory environment. “Not everyone is a cypherpunk or can afford to be. We have to pay taxes and show our face.”added.
Concordium is developed and advised by senior executives and board members from companies such as Volvo, Ikea, Saxo Bank, MasterCard and others. While Issembart did not go into detail about how others will use Concordium, he alluded to the “initial use cases that will come from these names”.