- Cogni, a digital neo-banking platform, has launched a “Web3 Passport” to transfer Web2 know-your-customer (KYC) information to a Web3 environment using the Polygon PoS chain.
- The “bank-level” KYC information is in the form of soulbound NFTs adhering to US KYC standards, which will ease the onboarding of other decentralized apps (dApps).
- Cogni expects to create a marketplace of dApps that can be easily accessed and connected with just a few clicks, including KYC information.
Cogni, a digital neo-banking platform, launched a new Web3 product to improve the experience of crypto users by combining Web3 and digital banking features. The solution was created to migrate Web2 know-your-customer (KYC) data to a Web3 medium.
How Does it Work?
Cogni, a New York-based neobank that provides Web3 access, announced on Thursday the launch of a “Web3 Passport” – a ready-made solution that transfers users’ Web2 KYC information to a Web3 environment via the Polygon PoS chain. Cogni stated that the passport would initially be available to a limited number of Cogni users before being made available to the general public in the summer of 2023.
This solution, which Cogni claims is the first of its kind, functions as soulbound non-fungible tokens (NFTs) requiring KYC information. Cogni’s passport is the neobank’s second Web3 product, following the release of its non-custodial, multi-chain wallet late last year.
According to Cogni’s Press release, “The Passport solves the industry’s biggest problems of trust and compliance.” From a trusted perspective, users and platforms will know the unique, verified identity of wallets, provided the owner permits it, which will reduce the amount of fraud and inauthentic sellers in the web3 space.”
The “bank-level” KYC information contained within the soulbound NFT complies with US KYC standards. It will allow the onboarding of other decentralized apps (dApps) without additional steps.
As a result, Cogni anticipates developing a marketplace of dApps that can be easily accessed and connected with just a few clicks, including KYC information.
Soulbound NFTs and Their Use Cases
Soulbound NFTs are one-of-a-kind tokens that cannot be transferred or sold like traditional NFTs. Contrary to regular NFTs, which can be bought and sold on various marketplaces, Soulbound NFTs are permanently tied to a specific user or account.
Soulbound tokens have grown in popularity in recent years due to their wide range of applications. For example, these NFTs are frequently used in Web3 games to represent unique items or characters that cannot be duplicated or traded, as well as for digital identity verification and proof of ownership.
Last year, Ethereum co-founder Vitalik Buterin collaborated with researchers and economists to publish a study on how soulbound tokens can aid in developing a rich, pluralistic ecosystem within Ethereum, also known as “Decentralized Society” (DeSoc).
