Reusable Identity Verification and Governance Framework Template

[GENERAL] Name and surname of main applicant

Nick Mason

[GENERAL] Email address of main applicant

nick@proofspace.id

Additional applicants

Viktor Radchenko - CTO at ProofSpace

Chris Manson - Partnerships Director EMEA at Veriff

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” .

Due to the challenge goal of developing trust and governance frameworks for ecosystems, this challenge requires all lead proposers to have dependencies on one or more stakeholders.

Our key dependencies are on Veriff, a global identity verification provider, and Atala PRISM 2.0.

We depend on Veriff for three things:

1. Integration of Veriff SDK and business processes into ProofSpace:
2. We have already completed our integration with Veriff and executed a partnership agreement, as such all ongoing technical and commercial dependencies are subject to that agreement. Both parties have a robust track record of Service Level Agreement fulfillment.
3. Participation in structured ecosystem design process resulting in an ecosystem governance framework
4. The roadmap, cadence of meetings and milestone delivery are mutually agreed between the parties as part of the submission of this proposal.
5. Onboard customers to leverage the integration
6. The allocation of responsibilities is clear in the Veriff-ProofSpace partnership agreement

We depend on Atala PRISM 2.0 to be fully ready as a technical stack for integration into ProofSpace.

• Atala PRISM 1.0 is already integrated into ProofSpace
• Atala PRISM 2.0 upgrade is budgeted for in this proposal

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

ProofSpace, Veriff and Atala PRISM include both open source and closed source components in their architecture.

ProofSpace’s no-code wrapper is closed source, while the underlying identity protocols may be open source. We are working towards being fully open source in the future. 

Veriff’s proprietary identity verification algorithms, methods and processes are closed source, which is standard in their industry.

Atala PRISM 1.0 is closed source and Atala PRISM 2.0 will have a blend of open source and closed components - the specifics of which are to be determined. PRISM is reported to be working towards open source in the future.

[METADATA] Category of proposal

Identity Solutions

[METADATA] SDG rating

SDG Goals

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

16 - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

SDG Subgoals

8.10 - Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

8.3 - Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

Key Performance Indicator (KPI)

8.2.1 - Annual growth rate of real GDP per employed person

8.3.1 - Proportion of informal employment in total employment, by sector and sex

8.10.2 - Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider

[IMPACT] Please describe your proposed solution.

There is a growing interest in reusable identity verification credentials, which may include formal identity document and biometric checks, social account verifications and more.

The resulting “reusable KYC”, or “web3 passport” offers enormous potential benefits to users, companies and ecosystems: easy sign-up and sign-in, cost savings, fraud-reduction, bot-prevention, increased trust, higher conversion rates, etc.

Therefore, our proposal assumes that “reusable KYC” or “web3 passport” will add value, be adopted and help drive adoption of the participating services.

Our proposal also builds on the existing reusable KYC implementation between ProofSpace and Veriff, which is already being implemented by a handful of companies and ecosystems.

THE PROBLEM

Problem 1

Identity verifications are not reusable, which means that each organization has to duplicate the IDV process, and so does the end user. This brings inefficiencies to the organizations and the users.

• The standard pricing model for IDV providers is to charge “per check”. The more checks consumed, the lower the price per check.
• This pricing model is optimal in industries like financial services, where regulations cause the financial institution to incur a liability for customers they onboard. Compliant KYC / AML procedures are required for each applicant to be approved as a customer.
• For environments where there is no or less stringent regulation or where an ecosystem leader is incentivized to accept liability on behalf of other ecosystem participants, one company may rely upon the identity verification that was completed by another company - let’s call this “reusable KYC” for the sake of simplicity.
• In this instance, this model creates a duplication of costs and duplication of user experience bottlenecks 
• This is the problem we want to solve with reusable KYC.

Problem 2

The stakeholders in an ecosystem need to trust that the IDV credential was generated through a trusted process and by reputable entity (e.g. Veriff), that the issuer of the credential is a trusted entity within the ecosystem and that the onward use of that credential is appropriate to the privacy requirements of the end users and the business requirements of the ecosystem companies. These complex variables are resolvable through governance. This is the problem we want to solve with the Governance Framework.

Problem 3

Governance Frameworks for decentralized ID are, in and of themselves, technical documents which require specialist experience to generate. Each ecosystems that does not have this expertise may incur unnecessary delays and costs in generating a new Governance Framework. This is the problem we want to solve by making the Governance Framework for this proposal available as a template which any ecosystem can adopt.

THE SOLUTION

The solution is a reusable KYC credential which is supported by a clear Governance Framework.

It requires a comprehensively developed decentralized ID stack, including the backend, front-end and user interfaces for issuers, holders and verifiers; APIs for integration into IDV providers and other third-party systems; and capability for custom configuration of each implementation.

It also requires an identity verification solution with APIs and SDKs (including UI) for integration into the SSI stack; a suite of verification tools for document, biometric, liveness, PEPs & Sanctions that are KYC/AML compliant; compatibility with the world’s identity documents; and capability for custom configuration of each implementation.

Finally, it requires a Governance Framework template that can be reused and configured by different ecosystems depending on their requirements. 

There are two parts to the solution:

• Technical integration

1. PS-Veriff: this is complete
2. ProofSpace provides a fully developed SaaS decentralized ID platform (website)
3. Veriff provides one of the leading global IDV stacks (website)
4. ProofSpace has integrated Veriff into its platform, and is already actively deploying this integration with customers (demo)
5. As such, the Cardano community doesn’t need to take a risk on a complex R&D processs to build out the IDV solution and SSI stack and then integrate those components - it’s all ready to go.
6. PS-PRISM-Veriff
7. Migration of ProofSpace onto PRISM 2.0
8. Enabling the PS-Veriff integration to deploy the PS-PRISM integration together
9. Adjustments to PS platform schema standards to include technical attributes such that the resulting KYC credentials are interoperable regardless of the network being used.

• Governance framework template for reusable KYC

1. Develop a template governance framework that can be easily used by ecosystems looking to implement a reusable KYC
2. This template will cover the following sections:
3. Primary Document
4. Introduction
5. Terminology and Notation
6. Localization
7. Governing Authority
8. Administering Authority
9. Purpose
10. Objectives
11. Scope
12. Key Roles
13. Key Processes
14. Out of Scope
15. Principles
16. Governing Documents
17. Trust Assurance and Certification
18. Credential Types and DID methods
19. Credential Schemas
20. Trust Registries
21. Assurance Levels
22. Risk Assessments
23. Governance Requirements
24. Interoperability Requirements
25. Business Requirements
26. Information Trust Requirements
27. Inclusion and Accessibility Requirements
28. Legal Agreements

WHO WE WILL ENGAGE

Aside from the key parties (ProofSpace, Veriff and Atala PRISM), ProofSpace will engage potential customers of the solution (which could be any Cardano community project with a need for trust between remote parties) on two fronts:

1. Participation in the development of the governance framework
2. Commitments to the adoption and integration of the solution on a commercial basis

HOW WE WILL DEMONSTRATE IMPACT

The immediate impact of the Catalyst funding will be to have that production-ready solution available for adoption. Ultimately the impact will be demonstrated through the adoption of the solution in the community, resulting in cost-savings for companies, greater trust between stakeholders, reduced risk of fraud, and greater adoption of PRISM verifiable credentials.

HOW WE ARE UNIQUE

Our proposition is unique because:

1. Significant progress made already: we’ve already done a lot of the heavy lifting through forming a legal relationship between ProofSpace and Veriff, integrating their two technologies and deploying them in the market (demonstrating the efficacy of the solution). As such, the Cardano community really gets value for money through this proposal - a ready solution which just needs to be adapted to PRISM credentials and wrapped with the appropriate governance architecture.
2. Combining production-ready, commercially available solution with the governance framework template removes the barriers to adoption and enables swift implementation.

Benefits to the cardano community are covered in the next section.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

This proposal comprehensively addresses the challenge by proposing a technical solution that is production ready, backed by a robust business plan and enabled by a governance framework.

Key challenge clauses and our response

1. Solve the business coordination and stakeholder challenge in parallel with the technology implementation effort.

ProofSpace and Veriff have already made significant progress on business cooperation and will continue to collaborate to maximise the impact of the solution for the web3 audience. PRISM will become an active participant in the technology effort. ProofSpace has implemented PRISM 1.4 and continues to work closely with the PRISM team.

1. This challenge is to identify targeted stakeholders within the product concept, Allocate funds for the developers to converse with stakeholders, convene or join a working group (i.e., Governance Framework Working Group at ToIP), consider and analyze a structured ecosystem, publish a report, and work on the next steps to develop the next feature of the intended project.
2. Stakeholders: ProofSpace, Veriff, PRISM and customers
3. Convening the stakeholders: ProofSpace will act as the coordinator and will work through ToIP working group format to convene the stakeholders (Veriff, ProofSpace, PRISM with potential for existing ecosystem partners to join) through a series of monthly meetings
4. Structured ecosystem: the objective of the governance framework template will be to provide a wire frame of rules, documents and standards for ecosystems wishing to adopt and implement this solution.
5. Next steps and development: we will be actively pursuing customers during the project period.
6. In addition to having a great team, product roadmap, milestones, and execution plan (all of which we have) we look for successful proposers to execute the following as part of the business plan:
7. Complete the Atala PRISM Pioneer Program: COMPLETE
8. Complete a Governance Framework workshop: PART OF PROPOSAL
9. Establish or join a Governance Framework working group at Trust over IP, or another host organization: PS ARE MEMBERS OF TOIP
10. Identify stakeholders including issuers, holders, verifiers, policy makers, and their business requirements: PART OF PROPOSAL
11. Establish a cadence of meetings and contribution and convene a home for parties to adopt and participate in the Ecosystem and Ecosystem Governance: PART OF PROPOSAL
12. Progress towards publishing a Governance Framework: PART OF PROPOSAL
13. Develop a Proof of Concept, Pilot, or commercial launch: PART OF PROPOSAL

Value to Cardano Community

As mentioned in the section above, our proposition is unique because we’ve already done a lot of the heavy lifting through forming a legal relationship between ProofSpace and Veriff, integrating those two technologies and deploying them in the market (demonstrating the efficacy of the solution). As such, the Cardano community gets excellent value for money through this proposal - a ready solution which just needs to be adapted to PRISM credentials and wrapped with the appropriate governance architecture.

In the big picture, it’s important for Cardano because it will help any project that is considering ID verification to implement this without significant R&D, integration and business development costs. 

The solution is in demand from projects with concerns about regulation (DeFi, DEX, crypto), concerns around user authenticity and reputation (DAOs, education, employment), projects handling sensitive personal  data (legal, health, etc.), and projects with ethical identity requirements (gaming and gambling). We already have several such projects in the pipeline. 

The solution helps the Cardano community move forward by addressing a practical identity requirement immediately, with a future-proof solution that is adaptable to complex emerging standards and regulations.

[IMPACT] How do you intend to measure the success of your project?

• Within the scope of the proposal timeline:
• Customers will be able to deploy PRISM version 2.0 through the ProofSpace no-code platform, using those credentials in IDV interactions.
• A governance framework template will be published as a resource for ecosystems wishing to implement this (or any other) IDV solution.
• Once the proposal is complete:
• # of projects using the solution
• # of IDV credentials issued
• # of IDV credentials verified
• Feedback that the security of projects is greater
• Feedback that the UX is excellent

Impact on Cardano productivity and growth

• Short-term:
• Opportunity cost saving: by taking care of the R&D, integration, standards and best practices around SSI and IDV, ProofSpace saves Cardano projects from undertaking the same duplicative and highly specialized activities.
• Productivity impact: by providing the solution as a SaaS offering, the community gets easy access to a practical and valuable solution through a business model that aligns with their unit economics - i.e. the pricing works for start-ups and major enterprise alike so that all projects can accelerate their path to market.
• Growth impact: increased conversion rates for community projects resulting from the secure, private and easy UX offered by the solution (see the demo)
• Long-term:
• Cost savings on duplicative identity checks through credential reuse
• Increased engagement with and between projects due to higher trust, reduction in bad actors, fraudulent behaviour, bot activity, etc.

[IMPACT] Please describe your plans to share the outputs and results of your project?

The solution is and will continue to be advertised on ProofSpace website. Once the project deliverables are completed, links will be provided on the ProofSpace site (perhaps in our Knowedge Base) to explain the solution and its accompanying resources.

ProofSpace provides an easy option to speak to our team through our website and any one will be able to reach out and adopt the solution through that medium.

We will also publicise the deliverables of the project through our social and professional accounts, as well as on community meetings such as Town Hall if we are invited to do so.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Both entities have a proven track record independently and as partners.

ProofSpace

ProofSpace is an established leader in the field of decentralized identity. Founded in 2018, we have consistently been at the forefront of decentralized identity R&D and implementations, and offer consulting and support services to our clients across various industries.

ProofSpace is the engine for better internet identity. We are proud to offer one of, if not the most, feature-rich, intuitive and scalable no-code decentralized identity platforms on the market.

Based in London, UK, with team members and distribution partners, we are able to serve a diverse range of clients across the globe. Our key personnel, including former-Microsoft, PNC Financial Services Group, Inc., and PlayTech leaders, provide strategic leadership that drives our growth and success in the marketplace.

Over the past four years, ProofSpace has secured significant achievements that attest to our industry standing. Our platform is used by more than 45 organizations, including Governments, major enterprises, tier 1 blockchain platforms and B2C start-ups. We are members and contributors to numerous industry bodies and have been recognized with industry accolades, including as the first SSI platform to receive ID2020 Certification.

In summary, ProofSpace combines deep industry knowledge, technological excellence, and a client-centric approach to ensure our platform is best-in-class.

Veriff

Veriff is one of the leading Identity Verification Providers globally. It was founded in 2015 with the mission to bring transparency to the digital world -  making it safer for everyone online. We grew rapidly to 550+ employees, opened offices in New York, Estonia, London and Barcelona and have seen key successes along the way. 

Veriff’s executive team includes individuals from global leading organizations such as Skype, where our CTO and Head of Engineering come from. We also leverage the experience from C-level members, like our CMO who previously worked in Google and the Bank of England; our CFO who is ex Monese, and our COO who previously worked in Jumia, McKinsey and Swedbank.  Furthermore, our VPs and Directors come from Transferwise, GoCardless and other leading regtech companies and our board members include leaders from IVP and Accel. 

Since our inception Veriff has been working with highly regulated industries that face high rates of fraud which continuously evolves and becomes more sophisticated. We have proudly developed a solution which has enabled us to detect and block countless instances of synthetic fraud, document tampering, and use of deep fakes, including attempts from highly sophisticated fraud rings. 

We have partnered with global leading companies and have not had a single enterprise client churn for performance or relationship reasons - our 97% of customer retention rate demonstrates the level of our customer’s satisfaction with Veriff solution and ongoing support. This is one of the reasons why we have partnered with leading Venture Capital firms including Alkeon, IVP, Tiger Global, and Accel, and received the largest series B investment round ever in the ID Verification space.

Financial Management

Both organizations have fully incorporated ltd liability companies in their respective jurisdictions, along with robust corporate governance and financial management systems in place. ProofSpace will receive the funds for the project on the basis of milestone delivery and distribute funds to Veriff, per a separate invoicing agreement.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

Within the scope of the proposal timeline or goals are:

• Complete the integration of PRISM such that customers will be able to deploy PRISM version 2.0 through the ProofSpace no-code platform, using IDV credentials in their end-user interactions.
• Publish a governance framework template that can be used as a resource for ecosystems wishing to implement this (or any other) IDV solution.

As a result of those goals being achieved, we expect to see measure the following key metrics:

• # of projects using the solution
• # of IDV credentials issued
• # of IDV credentials verified
• Feedback that the security of projects is greater
• Feedback that the UX is excellent

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1 | Technical integration: PS-PRISM-Veriff | Months 1-4 | $32,250

• Migration of ProofSpace onto PRISM 2.0

1. Integration of PRISM 2.0 SDK into PS SaaS Platform 
2. Functionality of creating a service-agent with PRISM 2.0 DID (Web dashboard, backend, mobile representation)
3. Functionality of issuing PRISM 2.0 credentials through ProofSpace Platform
4. Schema/credential definition editors
5. Interaction constructor
6. Integrate PRISM 2.0 SDK into Flutter application
7. Functionality of holding, presenting and verification of PRISM 2.0 credentials through direct interactions between mobile application and service-agent
8. Testing and Fixing

Milestone 2 | Enable PS-Veriff integration to use the PS-PRISM integration | Months 2-5 | $6,750

• Extending the PS-Veriff integration to accommodate PS-PRISM interactions
• Adjustments to PS platform schema standards to include technical attributes such that the resulting KYC credentials are interoperable regardless of the network being used.

Milestone 3 | Governance Framework Template | Months 2-6 | $19,000

• Governance framework template for reusable KYC

1. 5x 1hr meetings with 2hrs of prep and follow-up respectively per meeting per participant
2. Dedicated legal consultations
3. Dedicated technical consultations
4. Dedicated security and standards consultations
5. Formalisation of documentation components (e.g. requirements docs)
6. Drafting of governance framework

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1 | Technical integration: PS-PRISM-Veriff | Months 1-4 | $32,250

• Deliverable: PRISM v2.0 available for no-code implementation through ProofSpace Dashboard and Mobile App
• Output: production-ready PRISM v2.0 integration available with ProofSpace
• Outcome: any project can can configure and deploy PRISM v2.0 with ProofSpace

Milestone 2 | Enable PS-Veriff integration to use the PS-PRISM integration | Months 2-5 | $6,750

• Deliverable 1: Veriff credentials can be used with PRISM v2.0
• Deliverable 2: PS platform schema standards are adjusted to include technical attributes for interoperability
• Output: production-ready reusable IDV solution where Veriff checks can be issued as PRISM credentials through ProofSpace
• Outcome: any project can adopt the solution on SaaS basis at through a business model that adapts to their size

Milestone 3 | Governance Framework Template | Months 2-6 | $19,000

• Deliverable: Governance framework template for reusable KYC
• Output: the governance framework document
• Outcome: any ecosystem wishing to implement reusable KYC can use the template for governance best practices and to expedite their path to market

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

As mentioned earlier, our proposal represents value for money because we’ve already done a lot of the heavy lifting through forming a legal relationship between ProofSpace and Veriff, integrating those two technologies and deploying them in the market (demonstrating the efficacy of the solution). As such, the Cardano community gets excellent value for money through this proposal - a ready solution which just needs to be adapted to PRISM credentials and wrapped with the appropriate governance architecture.

The cost of the PRISM v2.0 integration reflects the cost of integration of PRISM 1.4 undertaken through a funded proposal in Fund 7 (with the addition of the Veriff-related task). It is not a simple “migration” or “update”. PRISM 2.0 is essentially a brand new stack. This represents value for money because:

1. We estimate the real cost of the 1.4 integration was closer to $45k, given the amount of testing and fixing that was required with the fresh stack. We are prepared to invest the $12-15k difference.
2. The results of ProofSpace integrating, testing and fixing will be fed back to Atala PRISM team in order to support them with the development and improvement of the PRISM stack for future integrators.

The cost of the governance framework includes operational activities and incentives to engage key stakeholders in the process. This represents value for money because the resulting template will be free to use by any ecosystem implementing our solution or any other reusable IDV solution. This will save future implementers a lot of time on a required activity.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept