Unique Identity (UID)
Unique Identity (UID) is a non-transferrable NFT representing Know-Your-Customer verification on chain. It is the first NFT for identity. It follows ERC-1155 standards, and is freely usable by any other protocol. No personally identifiable data is stored on-chain.
Know-Your-Customer verification is a check that ensures a person is actually who they say they are. Doing so prevents cases of fraud and any suspicious activities from occurring on the Goldfinch protocol.

Why this matters

Having an on-chain representation of personhood achieves two major unlocks:
  1. 1.
    It opens DeFi to an entirely new set of real-world participants, notably companies and financial institutions.
  2. 2.
    It greatly expands the design space for new features and mechanisms on DeFi protocols.
Many companies today don’t interact with DeFi due to KYC and counterparty concerns. But UID solves these issues for them. Many companies are already borrowing through Goldfinch, and they wouldn’t have without the KYC verifications. As companies grow comfortable with DeFi, they could drive an incredible amount of new volume.
UID is completely interoperable with the rest of DeFi. It is a standard ERC-1155 contract, so any protocol can get the benefits without having to build their own KYC flow or handle any data themselves. If you’re a builder, go to the Developer docs to learn more.
It’s also important to emphasize that UID seriously factors in privacy. No personally identifiable data is stored on-chain. Goldfinch has partnered with Persona to manage the KYC process and data. They offer industry-leading privacy and security practices that are trusted by many of the largest technology companies.
Learn more here.

How it works

When a user completes their KYC process, Persona checks that they have a valid identity and are not a duplicate of other ones. Once verified by Persona, the user is eligible to get their UID. They do this by submitting an Ethereum transaction that mints the UID, which is a non-transferrable NFT that is sent to their address. There is a 0.00083 ETH fee (about $3) in addition to gas, in order to cover the cost of Persona’s service.
Then, when the user participates in protocols like Goldfinch, these protocols can check that they have this UID, ensuring they are unique and KYC’ed.

About the artist

The amazing illustration for UID was created by Marcelo Meijome. You can see some of his other NFT works on Foundation.
Last modified 24d ago
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