The Quadrata team works quickly. Today, we launched the low-code Web3 passport for our first major product, DeFi KYC, after being formed within eight months in August 2021.
CEO and co-founder Fabrice Cheng is a simple solution that enables highly regulated institutions, from banks to asset managers to pension funds, to access DeFi products on the Ethereum mainnet through the safety of KYC. Made it possible to do.
“Blockchain technologies are special. Especially when we look at how these technologies are out of date today, we have the power to replace and enhance tomorrow’s financial services,” Chen said. I am. “It’s very obvious to us. The world enhanced by blockchain is a world that requires access to identity, some degree of compliance, and access to reputation.”
Bring an unauthorized passport
The Quadrata passport provides native access on the public blockchain, Cheng said: CeFi background checks defi users.
Quadrata creates an ERC1155NFT that retrieves TransUnion AML and KYC data via Spring Labs’ Ky0x digital passport and records whether the customer passed the background check.
To fit the DeFi use case, NFTs do not retain personal data and update it regularly through off-chain background checks. The Ethereum Mainnet allows users to store their passports directly in a web3 wallet such as MetaMask or host them on OpenSea.io.
If the defi platform wants to onboard customers with passport checks, they add a line of code. When a user makes a transaction, the code checks to see if there is a passing Quadrata passport at that address.
Reasons to start Quadrata
Lisa Fridman, president and co-founder of Quadrata, said Spring Labs applied blockchain and encryption technology to protect data between financial institutions in private networks, while Quadrata had the same idea for public blockchain. Said that it produced. Friedman and Chen were at Spring Labs as Head of Blockchain Technology and Head of Blockchain Strategy.
“Our goal is to enable a wide range of institutional recruitment, or participation in opportunities at DeFi, and participation in use cases at DeFi,” says Fridman.
“In the case of DeFi, or blockchain in general, to enhance existing types of financial services, we first need to achieve two things: one needs to increase compliance solutions and two are chains. We need to increase the data available above. “
Friedman said on-chain people and institutions cannot take advantage of their reputation from the off-chain world.
However, the TransUnion data sent to Quadrata by the Spring Labs Partnership will help take the world of DeFi to the next level.
“Over-collateralized lending is today’s main use case in decentralized finance,” said Friedman.
Off-chain data such as the KYC provides the world of decentralized finance for “real-life type of use cases” or traditional financial services, unsecured loans, secured loans, mortgages, and asset-backed securities. The idea is to help. Such. “
Initially, the biggest users in mind are those who are excited about accessing decentralized finance, such as asset managers and banks, but are tightly regulated Money Laundering Prevention (AML) and Know Your Customer. A traditional financial and investment company controlled by (KYC). ) Check.
Quadrata puts it together
TransUnion handles it all. Off-chain Ky0x makes it easy to check your passport, and Quadrata puts it all together as a simple low-code contract looking for an NFT passport.
Liz Pagel, Senior Vice President and Consumer Finance Business Leader at TransUnion, said:
“We look forward to becoming part of the Quadrata and consumer journey that creates an identity that can be brought to Web3 via a passport.”
Cheng said it’s a one-time sign-up for regular consumers, including signing up for CeFi background checks at Venmo, Coinbase, TD Bank, and more.
“Actual: When a first-time user accesses an application that requires background checks, a passport will guide you through a one-time onboarding flow,” Cheng said. “This is very similar to creating an account in a centralized enterprise. You need to prove that you are a real person.”
The user visits the Quadrata passport site, signs the transaction through a wallet such as MetaMask, and saves the check results as an NFT. However, again, you cannot store the actual identification data in Passport NFT.
“I understand that there is one more important thing than compliance to fit into the blockchain paradigm: data privacy and user anonymity,” Cheng said. “Therefore, it does not contain PII, nor does it contain information that can be used to derive or connect to real people. But it is confirmed that you are not a criminal, so you Says he is a real person. ”
Open data passport
Therefore, when a particular exchange requests passport verification, a single line of code interacts with the NFT to allow the NFT or kick it out of the door. No, Cheng said these are not PFP NFTs. Passports cannot be bought or sold as they are not transferable. Instead, he called them “open data passports.”
In the future, the team plans to bring more than KYC and AML into the chain, considering credit scoring and accredited investor affirmations, Friedman said.
She also said that the passport works in multiple wallets and the team plans to add more than the Ethereum mainnet to make the solution truly blockchain agnostic.
“We are really excited to bring these and more off-chain capabilities to blockchain and decentralized finance,” Friedman said. “Provide viable alternatives to power a wider range of financial services to accelerate execution, reduce costs and increase transparency.”
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A very energetic news reporter asking questions covering clashes between Silicon Valley, Wall Street, and everywhere in between.I studied history at the University of Delaware and learned to write at review, And debank. Send an email to kevin@lendit.com to give a story idea, question, or greeting.
