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Hashbon FiRe

DAO: what role KYC plays in this type of organization (Part 2)

Hello Hashtronauts!

We welcome you on board our informational Sunday column “Hashbon Space Edition”. We would never stop exploring the world of crypto, Web3 and blockchain along with their aspects. As you may remember, we went per aspera ad astra last week and learned some of the reasons behind the DAO phenomenon, looking through its structure, pros, as well as its cons. As a part 2 of the previous article, we will somehow dive deeper into the world of DAOs and answer the burning question of why they need KYC. Before we start, we would like to refresh your memory with regards to some facts about DAOs and KYC, because they’re both like unique ingredients so let’s see what happens when we put them together.

Ingredient №1 — KYC

KYC (Know Your Customer) is a financial institution’s primary modus operandi, which obliges them to verify the private information of a person before any transactions can be conducted. This identity verification serves many purposes: clientele understanding, monitoring operations, reducing liability, and combating bribery and corruption. This protects companies from dealing with fraudsters and ensures the safety of customer assets. You can learn more information about KYC here.

Ingredient №2 — DAO

A DAO (Decentralized Autonomous Organization) is an organization with no centralized leadership; participants interact with each other as partners to achieve common goals. The rules are built on the basis of smart contracts. General voting is the only way to implement new rules, meaning that not a single third party can interfere here.

Although people work together in a DAO, they often remain anonymous. There is no agreed regulatory framework for DAOs. As a result, compliance with AML/KYC policies is impossible. These are security measures that ensure that the legal entity only deals with clients, token holders, as well as participants who pass various identity checks and pose a low risk of money laundering.

Adding flame to the fire, DAOs can include people from all over the world, where the laws of multiple jurisdictions apply. Deciding which country’s laws apply creates further complications, a tangle that can only be unraveled in the event of a dispute.

Well…does it mean that the usage of DAO platforms isn’t absolutely secure? Not at all. A DAO isn’t just an idea, it is a new form of organization. Over time, it will develop its legal framework and we know of one innovation that can help.

Boom! Hashbon Pass is here to give DAOs a workable solution. Hashbon Pass, or NFT Passport by Hashbon FiRe, is an NFT token and a decentralized protocol for reusable identity verification on blockchains such as Ethereum, BNB Chain, Polygon and other EVM-compatible networks. Our main mission is to facilitate a privacy-oriented KYC procedure. We’re helping businesses perform KYC procedures in a safe manner, the way it’s supposed to be done.

Transparent voting

With Hashbon Pass’ help, vote manipulation can be reduced and a reality of fair votes will be ensured. When passing KYC, the platform (i.e. DAO) can be sure that one wallet = one person and thus, one vote. The option of a person having multiple wallets resulting in a skewed voting result is excluded.

Platform Security

Platform security means that it will be resistant to such attacks as — 51% attack, Sybil attack, which are relevant security concerns for DAOs.

Analytics

DAOs can get more information for analytics, for example, they can find out who their community members are, where they’re from, who from their community is most active in the voting process, who came/left at any point, etc. It’s worth noting that this data is transferred only if the Hashbon Pass holder opts in to sharing personal information with the DAO.

On June 30, we’ll be launching Hashbon Pass. Services that are ready to enter the new era of the NFT ID industry can book a demo here and integrate Hashbon Pass before its official launch.

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Hashbon FiRe

Hashbon FiRe

Finance Reinvented Crypto Ecosystem. Including DeFi CDEX platform Hashbon Rocket, payment gateway Hashbon React and crypto wallet Hashbon Quant