Nebular Summit: Breaking Digital Identity Barriers with Cheqd.io

Transcript

foreign protocol that lets you build crushing applications and experiences in a secure way Rob and I really enjoyed their Tech because they don't add any new security assumptions on top of the connected change as they don't rely on an external validator set or an oracle security is definitely Paramount in D5 so we're excited to work with connects hope you enjoy this video what's going on guys high rollers roll up Nation however we want to address you guys these days I'm not even sure I've done too many interviews at this point I've called you guys a whole bunch of different things but we're in a different realm here than the typical

ethereum roll-up space in l2s which we're equally excited about for the roll-up so we're here today with Frasier Fraser is building a really interesting project called checked I might have missed that but I think it's checked um and yeah digital identity is the topic of the conversation today so uh welcome Frasier cool thanks for having me yeah and uh obviously part of checked but also we're launching creds at nebula this week so hopefully you'll see that go out today and obviously part of the conversation here so looking forward to it yeah I think Craig's is a good topic starter uh as far as like um kind of proof of identity proof of being somewhere proof of uh doing something isn't that kind of what digital identity is all about it's kind of like being able to verifiably prove on chain that you're they've been somewhere that you are this person or

that you own that nft or that data kind of isn't that what it's all about like verifiable proof uh kind of for us I think that the difference with where we're going is everything's off chain and the reason we've done that is it gives you so much benefit in terms of privacy so instead of like an SVT being tied to your account nothing's visible so like until you share it nothing you can't see anything so one of the benefits for us with creds is I can share you a link I could share someone else a link and I could share across those links different credentials and if I don't map the same credentials up you wouldn't know it's me and it's like you wouldn't be able to collude together so it means I can present myself in completely different ways to different people without them ever being able to

to merge it up together I think that's where like nfds and spts might go with like stealth addresses where you can start like rolling them out but we've just kept it off chain because it's more private that way um but to your point like on on verifying improving that kind of stuff yeah absolutely that's exactly where it is it's like have I been somewhere so for example at nebula have I attended am I a speaker have I done the workshops does that mean that like I can demonstrate Proficiency in like say dydx or big E4 like that kind of thing um as well as just sort of a point on digital identity it's why like we've started using the term decentralized reputation because it's less to do with like everyone thinks identity is really tied

to like your passport or your driving license but like it could be it could just be a receipt it could be a ticket that you've been somewhere a good to your point could be that you met someone like and that's less like feels like less like identity and more just like how people treat you in the in that scenario so yeah yeah how do you feel um first of all it's in interesting points on the creds I I didn't kind of taking things off chain for privacy I mean that's uh that's that's important right there's a lot of uh it's tough to be um private Unchained I mean that's the whole point of the technology is open open transparent Finance but yeah it's a it's a bit tough to kind of do everything privately um so I think that the off-chain idea is uh is kind of the uh logical Next Step

but furthermore on that digital identity kind of conversation uh you know we've seen uh you know sort of defying nfts and uh poapps and um different types of uh ways to identify yourself to where I kind of view it as like this black box in the cloud that kind of has all of my data from web to to web3 and just everything combined and there's kind of like this just it's just this black box there um how are you viewing about like value capture when it comes to digital identity how are you viewing about um kind of like doing this in a way that uh benefits users of checked or just benefits people in general yeah so I think there's a lot of bits to capture that I think one of the things you were saying about like that black boxes I

think people decided to get worried about how much they can have like if you're taking ownership and control how much you're going to have to manage and control like it's a lot so there's been this concept in in SSI decentralized ICD for a few years called agents and I think it really Maps into like where some of the AI is heading right now which is it will just manage that data on your behalf so you'll just say like okay let's say I'm signing up for public Wi-Fi I'm never going to give my real email my real name any of that stuff but if it's my bank like I'm gonna have to so basically start treating it that way or like if I move house go update everywhere that I need to have the code address but also just if there's some way I don't care about leave that for a

while like I don't care if there's some posts going to my old address that just goes straight into the bin maybe that's a good thing and then I think the other side is like the to your point the reward system so I think there's a few parts of that one is like individuals getting rewarded for sharing their data taking that ownership and control the other thing that was probably a couple of weeks maybe a month away from releasing is the ability for anyone who issues that data in the first place to get paid as well we think one of the problems right now with like web 2 is there's no incentive to give that data back because that's how they make their money so what we're doing at checks is making it so that every time that data goes out and gets reused whoever originally created it

gets paid so as well as user participating we also incentivize companies to get the data out the door because otherwise we found that over the past like three to five years they're just not going to unless they get they get paid so we're thinking about like using incentives and money to free the data out to individuals but also making sure that part of that ecosystem too and everyone's rewarded because it's key yeah the the incentive mechanisms of the web 2 Data like just Facebook Facebook ads is so crazy some of my friends are a very successful e-commerce um guys and they've crushed ship because the amount of data that Facebook has on people allows you to Target so specifically on ads and you as the person who provided them with data you don't earn any of that millions of

dollars of AD spend that these companies put targeting you based on the information that you provided Facebook's just like this kind of middleman that makes so much money off this digital ad spend by collecting data people yes they have a really good Network and people love to use Facebook but um yeah there's like a there's like an incentive mechanism here where wouldn't it be nice if Facebook users could just get a little chip of that and so like what's your thoughts on like um yeah even further um data marketplaces and monetization for users yeah I think that's going to be a fascinating part to your point like obviously this is an area that you know really well like one of the things that's interesting for me is even with that ad spend everyone knows that it's inefficient they just do it anyway everyone knows that like yeah you can

Target people but off like most of my ads are for stuff I've already bought so like that spend is completely wasted and I'm also getting it worse user experience whereas I think where we're moving to a decentralized ID and this kind of I guess preference sharing is I can literally land on a website anything that I've never like a website I've never been to before share the preferences of like my shoe size like the style that I like maybe it's food and they can immediately tailor the experience of that without having to like track me which is getting going to get more and more difficult with the things that like apple and cookies going away is going to happen but I think the extension of that is it's something like we've been talked about a few times from um people building e-commerce and

targeting gen Z where they're like they want to completely unique experience to them and they want it completely seamlessly and the only way of doing that we can see is that you land on the website you allow it to you allow like an agent or something to share trusted data about you that's accurate yeah and the trade-off is like you get a one-click checkout yeah and it's completely tailored to you guys experience and would you call it preferential or like just preference sharing it's also sometimes called like intent casting yeah so the idea that like you land on a website and you're like okay I want to buy a new phone here's what I'm going for here's like the data plan that I need yeah figure it out for me like you you pitched to me rather than I'm having to hunt you down

like you tell me all the deals that fit that without me having to like type in a load of keywords search through all the stuff just make it automatic yeah it's like some crazy AI world of intents powered by anoma where we're just absolutely like we just think of what we want and somehow it arrives it's like there's no there's no there's no work required that's that's exactly where that's where e-commerce should be heading as long as there's some control you're not getting just ripped off left right inside so there's going to be a trade-off you need to be providing some content somewhere but it'll be so much better like I personally I make a point of not say using Amazon yeah I don't agree with like a lot of their work practices like the way their tax setup is in the UK and stuff and but like they

checkout process is awesome and I would love to be able to have that anywhere without having to create an account a really good example of this is um I don't know if this happens elsewhere so much but in the UK If you go to like a museum or a cinema now you pretty much have to create an account to get a ticket even if you're only going to go there once in advance and so you're now creating an account you're like I went to the Barbican agency and it's like I have to create an account for a ticket that I'm only going to go there once yeah why like why do I need to do that I don't care like I don't want your marketing emails like leave me alone yeah and yet you're forced into it whereas if you get that one click checkout that experience that trust

without all of the surveillance around it would be so much better so much better yeah it's going to point this back to where we are with Cosmos and defy and nfts and these types of things what is uh like what what is the main initiatives that you guys or main problems that you guys are trying to solve or initiatives that you're that you're trying to push forward like within the crypto sphere good question so I'd say probably two um the one that I think is starting to come around is reusable kyc it's been talked about for so so long and I think for exchanges that's still gonna be hard because the ranks basically say like you can't do it right now I think that's going to change over the next two to three years so that's starting to we're starting to see that come around the other thing is just

using that kyc for other things so everyone was always talking about like using it across exchanges the reality is you can use it for so many other different things like I don't know and like nft like whitelisting or like proving you're not from the US so people are worried about like airdropping to you it's starting to become more and more of a thing but also being able to like then bring that on chain so um vectus um who are part of Cosmos as well like they put one of our Grands down from the community pool they're doing it so that like your kyc credential stays off Ledger but they can then put a proof on Ledger use IBC to check our Network and then you'll be able to like have a deep like a kyc D5 pool with certain policies on it yeah

the other one is collateralized lending so the ability to bring credit scores and Credit Data from off Ledger yeah and then bring it on because like a lot of the credits going Solutions right now are built for existing defy users which last time I checked I think there's something like four million defy addresses like that's it's a small number yeah you divide that by like six for the amount of Wads that all of us have exactly and everyone's talking about the next billion you're like these people like the next billion does not have a transaction history so we need to get that data on from somewhere else somewhere else Bridget on so that they can literally come out as and the best Market I think for this like you've got so many people where they're storing their assets into crypto

because it's more stable than Fiat but then all of their financial history and their credit score is off Ledger it's like their other life where they pay their bills and blah blah so you need to bridge the two to be able to like they probably like I assume can't get Finance in certain scenarios because like all their assets are in crypto all their credit score is like off Ledger and there's nothing Bridging the Gap so I'd say those two are probably the big areas in like in D5 sounds like my life truly yeah I mean I uh luckily was able to uh in the previous uh in the previous ball like get out and um and and purchase some some uh some real estate but you know I did I wasn't able to do it with any of my crypto stuff I was luckily

that I I've had it in business online kind of in the same e-commerce space since 2019 so I was able to kind of use that credit and and and and and that but yeah frankly if you've got if you're trying to get a loan for example and you show to the bank your Bitcoin even if you've got like a million dollars of Bitcoin they're just not going to really you know care to see it they may be Bitcoin maybe but like probably not yeah exactly and then like if you're in that scenario and you want to start lending or borrowing like that doesn't help like you're still logged in and you're locked into like a collateral system just the ratios just don't make any sense and so I think it's something we want to massively help out in because the other thing that's coming through is

all the regulations are pushing especially across the EU individuals taking ownership of that data and credit scores and Credit Data is going to be part of that so it also makes sense for those organizations to bring that through because ultimately in two to three years they're going to be told they have to anyway as and give that data back under the control of users so the whole like dynamics of this just makes sense completely so that's awesome so how can our community get involved as we kind of wrap up how can we participate in the kind of digital identity Revolution where can we find you guys um yeah cool yeah awesome uh so there's check.io so like anyone we haven't spelled it the normal way because short domain names um but it's c-h-e-qd dot IO but probably

the thing that like the big thing that we're launching this week is creds.xyz so c r e d s dot XYZ um and that is all to do with like decentralized reputation proving who you are proving what you attended but done in a completely privacy preserving way so so that'd be the big thing that like if you want to start seeing what digital identity could look like and how to get involved that's the thing and especially if you want to start using it app.credits.xyz that'll take you straight into the application where you can start messing around with it so yeah get involved yeah cheers for the time and the interesting insights on the uh yeah just very very very very uh let's just say uh interesting times for lack a better word for this data uh kind of marketplace for this data privacy for

this just overall with the rise of social media we're seeing that uh new Solutions are coming and and they're Innovative for um basically user monetization user privacy and overall uh more fair and transparent digital world that we exist in going forward so Props to you for uh trying to build a part of that thanks for having us like anytime it's uh it's about time to get the word out like everything's coming through all the right time and now it's important to take advantage of it and really push it forwards so totally agree cheers