Cheqd, a provider of privacy-preserving Web3 payments and trust infrastructure, has rolled out a new solution for portable, decentralized identity and reputation, called Creds. Utilizing blockchain technology, this solution provides self-sovereign identity, granting users complete control of their data and privacy.
Web3, or the decentralized web, underpinned by blockchain technology, has spawned a multitude of communities built around cryptocurrencies like Bitcoin and Ethereum, and crypto token-rewarding games. However, the threat of scams and identity misrepresentation is constant. Cheqd's solution offers a secure, privately-held identity, allowing users to authenticate themselves while preserving their privacy.
Eduardo Hotta, Head of Marketing and Community at Cheqd, remarked that more organizations are shifting towards a community-centric model, with a focus on real active community members over vast numbers of anonymous entities.
Creds provide users with a profile linked to their blockchain digital wallet, enabling them to build a community reputation and share it selectively. While based on publicly available blockchain technology, the information secured by Creds is not public, ensuring user data privacy.
Communities, games, events, and websites can use Creds to reward participants, akin to nonfungible tokens (NFTs). The distinguishing factor is that Creds also carry the user's identity, verifying their community involvement. Users can leverage their Creds for various benefits, like VIP event whitelisting, forum access, or coupons.
Cheqd conceived Creds as a privacy-preserving alternative to NFTs, which, due to their public minting on the blockchain, can undermine user anonymity. Fraser Edwards, CEO and co-founder of Cheqd, lauded Creds as a "collectible, portable, secure, and verifiable" tool that fills the privacy gaps in NFTs and soulbound tokens (SBTs).
Decentralized identity has been explored by Web3 companies for single sign-on and portable reputation. This concept is similar to using a centralized account (like Google or Facebook) to log into different websites, but without a central authority controlling the information. Companies like Spruce Systems Inc., Wipro Lab45, Unstoppable Domains, and Carv have all ventured into decentralized identity solutions.
