Humanity Protocol’s $1.1 Billion Valuation: What Is The Blockchain-Based Identity Verification About?
The world of blockchain and cryptocurrency is seeing yet another innovation in terms of security and identity verification with the Humanity Protocol. Humanity Protocol is a zero-knowledge Ethereum Virtual Machine that is operating in the Web3 world and is designed to verify users in a decentralized manner. It works based on its own anti-Sybil Proof-of-Humanity (PoH) consensus mechanism that uses palm recognition of humans and stores them in decentralized nodes in the form of zkProofers that verify whether the human is original or not.
This technology is now creating a boom in the Web3 space and is set to solve many issues related to user identification that will be discussed below. And this is why Humanity has raised an additional funding of $20 million that is valuing the company at $1.1 billion. In this blog, we are going to look at what this blockchain-based identity verification company is all about and the issues they are going to address.
The Way Blockchain Protects Online Gaming
With the blockchain gaming market growing at a CAGR of 69.2% from 2024 to 2030 to reach a market cap of $194.56 billion, the need for blockchain identity verification is needed more than before. Blockchain is used in many industries and case studies as an example of how decentralization can help with increasing efficiency, and the integration of a biometric-based user identification solution can even enhance security, trust, and overall player experience.
This is why the online casino industry has become one of the main beneficiaries of blockchain technology. The case study of digital gaming companies that integrated crypto payment methods and leveraged blockchain as a security measure to protect user data proves that blockchain is effective not only as a standalone technology but also as an integral part of various industries.
For example, Bovada Bitcoin casino is one of the most popular options in the market and not just due to the variation of games it provides. The security enhancements have their role in the popularity of how Blockchain identity verification can prevent any unauthorized access and only allow verified users into the platform.
Some of the key benefits of blockchain-based identity verification in online gaming are:
How Humanity Protocol Works
When we talk about verification, we are used to the normal procedures of OTP verification, asking a secret question, or a simple password. The problem is that all these techniques work in the Web2 world, where the user relies on a social media platform. This has created a concern for privacy issues since there are many leaks associated with social media platforms. But in the ever-evolving Web3 world, the verification is done based on unique wallet signatures. This also creates another problem where a single user can create multiple attacks and manipulate a server.
Humanity Protocol is the answer to all these problems by providing a new solution to user identification; the company creates a network of verified humans with biometric recognition that is completely unique to one user, such as fingerprints, eye color, face, etc. This will be then checked against the profile (1-1 matching) and the entire database of biometrics (1-to-N matching). Anytime the user scans the image of their palm into Humanity Protocol’s database, it will be stored across their network of zkProofers that are responsible for verifying the information.
How Humanity Protocol Verifies Identity With Blockchain
Humanity Protocol is built on two components; identity validators and zkProofers. They are both designed to enhance security while maintaining privacy. The identity validators verify the data submitted by users and issue verifiable credentials that allow users to confirm their identity without giving too many personal details.
The zkProofers validate the information using zero-knowledge proofs without accessing the biometric data. They can confirm identity status with interactions for account verification, access permissions, or compliance checks. There are multiple zkProofers for each verification to ensure a secure and decentralized network that is free from any tampering.
Other Applications
Humanity Protocol is not just limited to gaming; there are many industries that can benefit from their blockchain identification system. In fact, the company is set to roll out the verification process in different phases for different industries. Decentralized Finance and Crypto Exchanges can use the help of Humanity Protocol for faster onboarding and preventing any bot trading.
Digital workspaces such as Metaverse can use it to secure logins without a password and ensure that only verified users are present in meetings, remote workspaces, and Metaverse interactions. Social Media platforms existing in the blockchain network can now eliminate any bot accounts and verify themselves without the use of personal data.
Blockchain identity verification is going to completely change how users interact with digital security to verify, and Humanity Protocol is the first step toward it. The recent valuation just goes on to show how blockchain-powered verification is going to become a reality.
