Coreum: Advancing Digital Identity with Smart and Soulbound Tokens

Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs) are leading the transition from emails and usernames to a more secure, private, and user-controlled solution. DIDs are globally unique identifiers that are independent of any centralized registry, such as government or corporate databases. They enable users to create, own, and manage their digital identities without relying on a central authority. Verifiable Credential, on the other hand, are secured by the blockchain, digital versions of traditional credentials (like IDs or Certificates) that can be instantly verified without contacting the issuing organization or party.

Coreum and the Role of Smart Tokens and Soulbound Tokens in DIDs

Coreum provides advanced blockchain infrastructure that significantly enhances the functionality and security of DIDs and VCs through Smart Token capabilities and Soulbound Tokens.

Smart Tokens on Coreum

Smart Tokens are programmable digital assets that can be used to represent value, rights, or any other type of asset on the blockchain. They can be programmed to perform specific functions automatically when certain conditions are met. In the context of DIDs and VCs, Smart Tokens can offer several advantages for projects building in the vertical and on Coreum.

1. Automation of Credential Issuance and Verification: Smart Tokens can automate the process of issuing and verifying VCs. For instance, when a university issues a degree, a Smart Token can be programmed to automatically verify the recipient’s DID and issue the credential. Similarly, employers or other verifiers can use Smart Tokens to automatically validate the credentials’ authenticity without manual intervention.
2. Enhanced Security: Smart Tokens can ensure that only authorized entities can issue or verify credentials. By embedding specific rules and conditions into the tokens, users and projects can ensure the credential issuance and verification processes are tamper-proof and secure.
3. Streamlined Transactions: Smart Tokens can facilitate seamless interactions between different parties within the DID ecosystem. For example, they can manage transactions such as paying for verification services or accessing certain restricted data, ensuring that these processes are efficient and transparent.

Soulbound Tokens and DID

Soulbound Tokens (SBTs) are unique digital assets that cannot be transferred or traded once issued. They are particularly suited for representing identity-related attributes and credentials, ensuring that these elements remain permanently associated with the original recipient. Here’s how SBTs on Coreum can enhance the DID and VC systems:

1. Permanent Identity Attributes: SBTs can represent immutable identity attributes such as birth certificates, academic degrees, or professional licenses. Once issued, these tokens are permanently linked to the individual’s DID, ensuring that these credentials cannot be transferred or misused by others.
2. Enhanced Trust and Authenticity: Since SBTs cannot be transferred, they provide a higher level of trust and authenticity for verifiers. When an SBT is presented as a credential, verifiers can be confident that it genuinely belongs to the individual presenting it and has not been tampered with.
3. Simplified Management: With SBTs, individuals can manage their identity credentials more easily. They do not need to worry about losing or transferring their credentials, as these tokens are permanently tied to their DIDs. This simplifies the management of digital identities and reduces the risk of credential fraud.

Coreum’s Ecosystem Features

Coreum’s comprehensive ecosystem supports the seamless integration of Smart Tokens and Soulbound Tokens into DID and VC frameworks. Projects can not only create their own DID and VC protocols but they can also take advantage of Coreum blockchain features like IBC Interoperability, ISO 20022 Messaging, and other Smart Token Features.

• IBC Interoperability — Connect with over 110+ chains throughout the Cosmos. Letting DID’s and VC move as users do.
• Instant Settlement — Combine instant settlement with verified credentials for streamlined money management. Avoid fraud and
• Smart Token Features — Implement features like whitelisting and airdropping for verified individuals or credential holding users.

Coreum is at the forefront of enhancing decentralized identity systems with its potential of Smart Tokens and Soulbound Tokens. By automating credential issuance and verification, ensuring the immutability of identity attributes, and providing a secure and user-friendly ecosystem, Coreum significantly advances the capabilities and adoption of DIDs and VCs. This not only empowers individuals with full control over their digital identities but also enhances the efficiency and security of identity verification processes for organizations, developers, and projects.

About Coreum

Coreum, the world’s first Superledger. A 3rd-generation, layer-1 blockchain architected for enterprises of any size, from startups to large corporations. Providing a remarkable transactional speed of up to 7,000 TPS and ISO20022 compliance ensures expedient and economical transactions across a swift and secure PoS network.

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