Web3 identity platform RNS.ID has launched on-chain KYC with a privacy engine, which encrypts user identity attributes into different hashed slices with multiple signature verifications via zkSync. zkSync implements zero-knowledge proofs and Merkle root-hashed ID properties. Unlike Optimistic rollups, ZK-Rollups can present proof of the validity of every transaction in a batch, and they take up less data, reducing the time spent on KYC verification.
RNS is supported by over 80% of crypto exchanges, including Binance, Coinbase, Bitmart, KuCoin, Gate.io, Bybit and Huobi. The company also enables users to create their own "minimal disclosure identifying information system", thereby reducing the chances of identity theft. The idea is to make a "mask" of a user’s personal information via ZK Proofs.
RNS also offers users to mint a pass for a Republic of Palau ID, in which holders will be able to use their NFT to redeem one year of Palau Digital Residency. Other utilities include a Palau address with a US zip code, digital banking, registering e-corporations, and insurance. To date, 95K users from 81 countries have signed up as digital residents of Palau via RNS.ID. Rent-your-sovereign-now!
The blockchain identity market is projected to grow by $3.6B by 2025, in large part driven by the close connection between identity and access to financial services. The Commonwealth of Dominica also launched a digital identity program and national token in partnership with Huobi. Dominica's government has agreed to a partnership with Huobi to issue Dominica Coin (DMC) and digital identity documents (DID), with DMC holders set to be granted digital citizenship in the country.
Larger jurisdictions will eventually be in play as well — South Korea may push forward with blockchain-based identity, and take a look at the EU's GLASS program. We like progress around this theme, despite how hard it is to make it successful.
Coinbase Wallet has had to disable NFT transfers on its iOS platform, because of a dispute over Apple's in-app purchase policy. Apple claims that the gas fees required to send NFTs must be paid through their in-app Purchase system so that they can collect 30% of the gas fee — a practical impossibility.
In October, Apple made several changes to its App Store guidelines, with the first point preventing apps from using fungible or non-fungible tokens to unlock functionality. The second point calls out NFTs and allows NFT sales, as long as it uses the "in-app purchase" rail, which requires developers to pay 30% of revenue to Apple, and then excludes the ability to use other rails. Coinbase argues that the gas fee tax makes no sense, as Apple does not natively support Ethereum-based smart contracts. Trying to charge a gas fee tax is an attempt at pushing developers away from decentralized blockchain infrastructure.
