The problem: There is currently no satisfactory DID standard for tokenized assets
Existing attempts to create a Decentralized Identidier (DID) standard for the tokenization ecosystem have fallen short due to:
Vendor lock-in attempts.
Profit-driven motives.
Technological limitations.
These issues hinder mainstream adoption and create barriers to interoperability.
The solution: DITO – Decentralized ID for Tokenization
A base layer for DID enabling standardization and interoperability between framework participants (i.e. KYC/ accreditation providers, security token platforms and exchanges, dApps).
Ability to build on top of the base layer to fit local regulatory requirements.
Based on Polygon’s ID technology of issuing verifiable credentials.
Open to any KYC or accreditation provider.
Available for free for any dApp.
Not tied to a single company, protocol, vendor ecosystem.
Not a source of revenue for DITO participants.
Tech summary
Identities are presented by a unique identifier called Decentralized Identifier
Identity based information is represented via Verifiable Credentials (VCs)
PolygonID is powered by the Iden3 protocol which is compatible with any Ethereum Virtual Machine (EVM) blockchain
Open to any KYC or accreditation provider
The Iden3 protocol enables users to generate Zero Knowledge Proofs (ZKPs) maximizing privacy of the Identity Holder
Key participants in the DITO framework
Issuer - An entity that issues verifiable credentials - (KYC Providers)
Identity Holder - An entity that holds claims to the verifiable credentials - (Users)
Verifier - An entity which verifies the proof presented by the Identity Holder - (Tokenized Platforms, Exchanges, dApps)
User Journeys
First Time: Without Verifiable Credential
1. Joins a Verifier’s platform.
2. Completes KYC with DID issuer.
3. Receives a Verifiable Credential.
4. Purchases permissioned tokens (such as security tokens).
Subsequent Times: With Verifiable Credential
1. Joins any Verifier’s platform.
2. Automated on-chain verification in real time as User connects wallets.
3. Automated on-chain verification in real time as User connects wallets.
First steps
DigiShares and Polygon are collaborating to create an extension of Polygon ID’s verifiable credentials.
Two leading KYC providers, Sumsub and Fractal ID, are joining the new framework.
Initial support for Polygon, Ethereum and their test-net counterparts, as well as Metamask and several other wallets
Further steps
Seek feedback from the ecosystem.
Get as many issuers, platform providers, exchanges, KYC providers, and dApp developers as possible to adopt DITO and make it the main DID standard.
Incorporate accreditation checks within the framework.
