The service leverages the Ethereum Attestation Service standard and is built on top of Coinbase’s Layer 2 network, Base.
Coinbase has recently released one of the biggest initiatives to mainstream decentralized identification. On Thursday, Coinbase, the biggest U.S. exchange by volume, announced Coinbase Verifications, which would enable more than 100 million users to testify to their account and country credentials on-chain.
In order to guarantee that all verifications are “public and composable,” the exchange says that the service is built on its Layer 2 network, Base, and employs the open source standard Ethereum Attestation Service.
Just one day following the product’s launch, Coinbase has already processed over 9,300 verifications. According to research conducted by Dune Analytics, this constitutes 15% of all EAS verifications.
One of the most crucial pieces of the web3 puzzle is a widely recognized decentralized identification, or DID, standard. Basic use cases, such as unsecured loans for people or enhanced governance models, may be enabled with DIDs, and they can also assist better guard against Sybil assaults.
Dragonfly Ventures managing partner Haseeb Qureshi said this will have far-reaching effects on airdrops and on-chain marketing/referrals.
Coinbase is one of many groups, like Proof of Humanity and Fractal ID, that are trying to solve the DID problem. Coinbase is the biggest corporation to launch the service utilizing a public blockchain, however IBM and Microsoft have also undertaken attempts to construct DIDs.
Despite the fact that Coinbase only serves a few number of countries with its identity service, Qureshi predicted that “we’ll see a network of these KYC providers operating together.”