Rate3 Cross-Chain Identity Protocol — Identity and Claims (ERC 725, ERC 735)

At Rate3, we initially wanted to build a blockchain-based settlement and clearance network for businesses. We previously written on the vast gap between enterprises and blockchain, and decided to take on a larger goal to bridge enterprises to the blockchain through cross-chain asset tokenization and identity management.

Imagine the future where any assets such as fiat, loyalty points, gift balance, housing deeds can be move securely to anyone (consumers, third-party apps businesses) in the world via blockchain. We built a Ethereum demo dApp to showcase how Rate3 Tokenization Protocol can be used to tokenize Singapore Dollars (SGD). Give it a whirl here!

Tokenization is only one half of the story. How else can you improve the security, accountability and overall experience in the system? How can we streamline existing processes done by enterprises via blockchain?

Rate3 Identity Protocol

This is where our identity protocol comes in. It serves two key functions:

1. A shared identity registry for all registered entities

Having a shared identity registry paves way for a shared reputation system in Rate3 ecosystem of trust companies, token issuers and users. Claims by trusted parties can be made against registered entities on the registry. These claims can be accessible by both web application and smart contracts. Some examples of claims can be identity documents attestation claims made by notary services, Facebook verification claims from apps, or even business membership and rewards.

2. An interoperable cross-chain identity

For shared identity system to benefit more stakeholders, it should be interoperable between different blockchains to support interactions with enterprises or dApps on different blockchains. For example, a user might be using a data attestation dApp on Ethereum and also making payments on Stellar network.

In summary, Rate3 Identity Protocol provides a single decentralized identity profile and allows for increased attestation and third party verification in the Rate3 ecosystem.

Implementation

So how are going to build a shared identity registry system? How are we going to make sure that reputation claims can be trusted? How can we make sure that the system will be as interoperable as possible? To answer these questions, we are constantly monitoring the decentralized identity ecosystem and other blockchain identity projects.

We decided to build the identity protocol on Ethereum because of Turing-complete smart contracts and its mature ecosystem. We envision a future where Ethereum becomes more scalable and faster (Casper), leading to a golden era of dApps and blockchain empowered enterprises. This is a recurring theme for new technology — Internet, smartphones and AI to name a few.

Identity on Ethereum

For managing identity on Ethereum, there is ERC725 — a standard for blockchain identity proposed by Fabian Vogelsteller, creator of ERC20, Mist, web3.js. ERC725 is still a draft but there are strong interests from some blockchain projects, as seen in the ERC725 alliance which Rate3 is proud to be a part of.

Without diving too deep into the specification, ERC725 allows users to own and manage their identity by publishing a ERC725 identity contract that can be controlled by multiple keys. Keys can be designated for different purposes like managing the contract itself, signing documents, or signing claims made against another identity contract (another standard — ERC735). The signature can be verified by using the corresponding public key accessible from the ERC725 contract.

ERC725 also provides a flexible base smart contract component to build more complicated and automatic systems revolving around identities — think public key infrastructure, digital certificates, regulating KYC/AML and delegated authentication. It also allows cross-identity compatibility across ERC725 contracts with extra use cases implemented by different projects. This is similar to how ERC20 standardized features of tokens and allow wallets and dApps to interact with different tokens.

If you are more of a visual person, Origin Protocol has built a visual playground to explore ERC725 and ERC735 in action. Or if code speaks to you more, check out Fractal’s first impression, Origin demo dApp identity contracts and Mircea Pasoi’s great vanilla reference implementation that follows the specifications as closely as possible.

Rate3 Identity Protocol Use Cases

On Ethereum

• Rate3 Identity is a smart contract that will be ERC725 and ERC735 compliant.
• Trustees, users, asset issues can hold a Rate3 Identity . The contract addresses can be registered in a single shared identity registry.
• Once users performed KYC with trustees, trustees can make ERC735 claims that users has verified KYC details (name, address, social security number, etc) and the Ethereum address registered with trustees.
• Certain token restrictions can be implemented automatically by checking an address against the identity registry and the claims associated with the Rate3 Identity. This auto regulation will be very useful for some assets being tokenized. Some examples are requiring users to perform KYC before it can hold the token, or restrict the token velocity and maximum balance of an address.
• Third-party attesters can make their own claims on the identity contract. These attesters can be notary services, traditional apps, dApps, or even government agencies.
• A user can claim against Rate3 Identity that he own multiple ERC725 from other projects like Origin Protocol, Polymath, further building his identity profile and reputation and facilitate interoperability.
• Being ERC725 compliant, users have the flexibility to use Rate3 Identity in other systems which are aware of the standard.

On Stellar

• Stellar Bridge node acts as a link for Rate3 stakeholders on Stellar to Ethereum
• Stellar accounts can be registered with Rate3 Identity on Ethereum
• Public decentralized federation server — users can optionally register their Stellar addresses with a readable address like davis*rate3.network as part of Stellar Federation Protocol
• Users may also optionally share KYC information with financial institutions (FI) via Stellar Compliance Protocol to make compliant transactions possible between FI and users (traditionally between FIs only)

Testnet

Rate3 is currently at Testnet V0.1 — “Proteus” and you may explore Rate3 Identity and ERC 725/735 on our Identity Demo . Rate3 Identity will be available on Stellar in the upcoming Stellar Bridge Demo. Do leave your feedback in the comments or in our Telegram!

About Rate3

Rate3 is a decentralised dual protocol for cross-chain asset tokenization and identity management. The Rate3 Tokenization Protocol is an end-to-end protocol for tokenization on both Ethereum and Stellar, while the Rate3 Identity Protocol is a protocol to create and manage a unified cross-chain identity.

Website: https://rate3.network
Twitter: https://twitter.com/officialrate3
Telegram: https://t.me/officialrate3