DREP On-Chain KYC: Build up Your Credit in the Vision of Web3.0
As it was reported, the sanction against Russia has caused 25 thousand Russian Bitcoin accounts to be inaccessible, which can be regarded as an inevitable consequence of the traditional KYC mechanism. The KYC mechanism was established for anti-money laundering and to regulate the transaction system, where measures were taken for knowing more about their customers by their offline information to decide whether they are qualified to enjoy the service. For example, new customers would have to provide a Government-issued ID and pass facial verification in order to make deposits and trades in a traditional KYC mechanism. This way of jurisdiction is adopted by most of the blockchain services, which has impeded the true realization of decentralization.
Questions may arise as that how can we achieve a safe credit system on blockchains while under the minimum limit of the government endorsement? Can our behaviors of transacting on the blockchains be free from the limitation of offline elements such as nationalities?
Fortunately, the answer is positive! On-chain KYC was designed to solve the issues, by only referring to on-chain historical behaviors of one person regardless of proving where your real hometown is or who you really are. Therefore, stereotypes aroused by centralized institutes may be invalid when it comes to on-chain KYC systems.
What DREP Can Do
Equipped with an on-chain KYC system, DREP not only has followed the Web3.0 spirit but also has accelerated its pace toward the decentralized credit with the DREP DID. As it goes in the 2022 Roadmap, DREP will endeavor to provide a convenient on-chain instrument and make its mark in the Web3.0 era. Let’s check what is described below for more details.
Create A Non-biased Metaverse
DREP protocols were born for constructing an equalized and decentralized credit community on blockchains, which means every DREP user is even and holds no discrimination. Users undergoing a KYC mechanism commonly receive jurisdictions of a centralized institute, which tends to judge one account from personal information in real life. Thus it disobeys the initial idea that blockchains were built for decentralized transactions. However, DREP abides by the rules by establishing an on-chain KYC system, which will judge a person’s reliability by his former behaviors on-chain by DREP DID. It holds no bias and optimizes the credibility of blockchains, it is a reciprocal protocol for both users and the platform.
Increase the Liquidity of the Blockchain Market
The on-chain KYC has the potential to increase the market liquidity by assage the over-collateral pawns. Specifically, with the on-chain KYC and the reputation system promoted by DREP, one can use the accumulated credit as a substitute formation for the required collaterals, thus more transactions are realizable. The economic fluctuation has impacted the blockchain community, caused coin prices to be volatile. As a result, free assets take up less proportion, people suffer from more pressure from over-collateralization. Therefore, we need actions to alleviate the rigidity of the market, and DREP can do that with its on-chain KYC system.
DREP is marching forward at the Web3.0 Metaverse
With more and more services optimized, DREP will exert its effort in realizing a safe and dependable community at Web3.0. We also hope more support would converge for us so that we will gain motivation to escalate our service. DREP will never shut down its engine, we have the ambition to keep moving on.