Alex Kern
Alex Kern
Mar 22, 2018 · 2 min read
Source: SecurityIntelligence

Establishing identity online is hard. Many businesses must connect users’ real-world and online identities but resort to a patchwork of APIs that introduce complexity and friction. Maintaining compliance is a growing issue as online marketplaces move toward more decentralized offerings and address an increasingly global audience.

Peer-to-peer marketplaces—the rise of the on-demand economy has created new ways for users to generate value by providing services to others. Facilitating trustworthy interactions is difficult yet necessary when scaling multi-sided marketplaces that connect people both on- and offline.

Online financial services—in the United States, Know Your Customer (KYC) and Anti-Money Laundering (AML) laws require that financial institutions collect an array of information about their customers and prohibit access to individuals on government watch-lists. Similar restrictions exist in other countries.

Initial coin offerings (ICOs)—blockchain-based tokens will be subject to regulatory oversight in the jurisdiction that they are issued.


A first step toward more trustworthy online marketplaces lies in a identity verification provider offering streamlined and secure user experiences. There exists a latent opportunity to create a developer-focused solution that uses real-world identities as a bridge between individuals and the decentralized web: peer-to-peer and decentralized apps.

A unified online identity will allow consumers to verify their credentials through a single provider and control access to their data.

A better compliance process will reduce barriers for qualified participants to engage in online financial services.

An on-chain verification system will make verifications available via public and private blockchains, giving the next generation of financial services (smart contracts) the ability to programmatically enforce compliance requirements.

Interested in joining our team? Check our careers page or drop us a line at careers@distributedsystems.com 🚩

Distributed Systems

Our mission is to place users in control over their data and privacy.

Thanks to Nikhil Srinivasan

Alex Kern

Written by

Alex Kern

pixel pusher, always alliterative, building @_dsys

Distributed Systems

Our mission is to place users in control over their data and privacy.

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