for Trust in Digital Trade
Commerce relies on trust. Blockchains are disintermediating trade, enabling millions of new transactions every day and boosting the global economy. But participants face new risks: how can we trust blockchain trading partners? Without real-world information about them, how do we know who we’re dealing with? We need to know their identity.
Why can’t we simply use the same proofs of identity online as we do in the real world?
Existing online systems, such as eBay and Visa, bundle solutions to these problems: they integrate identity systems, where users’ private data is shared only with the system, and use a mix of indemnity and sanctions to maintain customer confidence.
Blockchain-based trade needs identity insurance: a way to prove one’s identity safely that is indemnified against fraudulent use.
An individual provides evidence of an assertion to an insurer, who sells them an insured fact. The individual assembles a set of facts, which may come from different insurers, into a profile. The profile is used by a decision-maker to make a decision.
The decision-maker can claim consequential damages against false insured facts. For example, a customer pays for an order, does not receive it, and then finds that the merchant’s insured name and address are false: the customer can claim damages from the insurer.
The Consortium aims to coordinate the actors needed to build out this new industry to design digital identity solutions, bring identity insurance products to market, and develop the wider ecosystem of providers who can build on identity insurance.
We will develop three main streams of business: