Onchain identities management

An open-source identity system compatible with any KYC agents

In the realm of blockchain-based securities, managing compliance and regulatory requirements is paramount. Traditional methods of enforcing these rules at the wallet level fall short, primarily because individuals can control multiple wallets. To address this challenge, the T-REX protocol implements onchain identities, ensuring compliance at an individual level and providing flexibility and reusability of verifiable credentials.

The Need for Onchain Identities

Limitations of Wallet-Based Compliance

• Multiple Wallets per Individual: Individuals can hold multiple wallets, making it difficult to enforce compliance rules based solely on wallet addresses.

• Complex Whitelisting: A simple whitelist of wallets is insufficient for ensuring that regulatory requirements are met for each individual.

Advantages of Onchain Identities

• Individual-Level Compliance: By managing identities on the blockchain, it becomes possible to apply compliance rules directly to individuals, regardless of the number of wallets they control.

• Centralized Identity Management: ONCHAINID allows for the creation of globally accessible identities, which can be managed and verified on the blockchain.

How Onchain Identities Work

ONCHAINID System

ONCHAINID is a blockchain-based identity management system that assigns a unique identity to each participant. This identity is linked to all their associated wallets, enabling comprehensive compliance management.

• Identity Creation: Participants create an ONCHAINID that is stored on the blockchain.

• Claim Management: Trusted entities issue claims (verifiable credentials) to these identities, which are also stored on the blockchain. These claims verify various aspects such as KYC and AML compliance.

• Verification: During a transaction, the identity and its associated claims are verified to ensure compliance with regulatory requirements.

Verifiable Credentials

Verifiable credentials are digital certificates issued by trusted entities that attest to the identity and compliance status of an individual.

• Flexibility: Claims can be reused across different tokens and platforms, simplifying the verification process for participants.

• Security: Storing claims on the blockchain ensures their integrity and availability for verification.

Benefits of Onchain Identities

• Enhanced Compliance: Ensures that all regulatory requirements are met before any transaction is completed.

• Improved Security: By linking transactions to verified identities, the risk of fraud and non-compliance is significantly reduced.

• Streamlined Processes: Simplifies the identity verification process, reducing the need for repeated KYC checks across different platforms.

• Interoperability: ONCHAINIDs and their claims can be used across various blockchain platforms and applications, enhancing their utility and reducing redundancy.