Beyond Web3: Does Proof of Humanity Apply in the Real World?

Digital identity is becoming an increasingly significant aspect of who we are and Proof of Humanity (PoH) is revolutionizing how we verify and interact with identities online. However, there's a common misconception that our digital identities will always remain separate and independent from our real-world identities. By tying our real-world identity to our digital presence, PoH can unlock a wide range of use cases, allowing us to live and interact in ways that are currently not possible.

What is PoH?

Born of Web3 technology, PoH is a solution that facilitates confidential identity verification, empowering real humans to participate in online and offline interactions and transactions. It not only enhances security but also fosters trust in these interactions.

Utilizing zero-knowledge proofs, PoH ensures data privacy and integrity while enabling individuals to prove their identity and data. 

Real-World Asset Tokenization

One of the most talked-about applications of PoH at the moment is in real-world asset tokenization. By verifying ownership of physical assets on the blockchain, PoH allows individuals to prove their ownership of Real-World Asset (RWA) through tokens. 

This isn’t just theory. The tokenization of RWA is already being put into practice by BlackRock. The investment giant has launched its first tokenized fund, BUIDL, on the Ethereum network. BUIDL will enable blockchain-based access to traditional financial products. This initiative also applies to RWA, enhancing transparency and efficiency in their management through blockchain technology.

Paired with PoH, this development can be particularly beneficial in the financial sector, where verified digital ownership can support real-world credit profiles and enable virtual asset-based loans. This ensures a secure and transparent method of managing assets, enhancing the overall efficiency of these complex financial transactions.

Cost-Effective KYC

Traditional Know Your Customer (KYC) processes are often costly and complex, involving extensive data collection and handling. A recent study by Fenergo, a due diligence firm, showed that the cost of KYC is increasing along with the time it takes to complete the due diligence process. In 2023, the cost per KYC review rose by 17% from the previous year.

PoH simplifies this process by allowing organizations to verify identities quickly without storing sensitive personal information. With PoH-enabled KYC, companies can not only reduce compliance costs but also enhance data security, making it an attractive solution for businesses aiming to streamline their operations and protect customer data.

Education and Credential Verification

PoH streamlines credential verification for individuals, sparing them from repeatedly disclosing sensitive information to third parties. For organizations, PoH offers a decentralized, transparent method of verifying applicants' credentials, reducing fraud risks. 

By prioritizing privacy, security, and decentralization, PoH revolutionizes how personal data is managed and shared, empowering individuals to control their digital identities while fostering trust and authenticity in verification processes.

Real-World Applications That Address Pressing Issues

PoH offers several applications that can revolutionize our interaction with digital identities. These use cases come down to three important factors — PoH can prevent fraud, improve user experience, and enable secure data storage and sharing.

Linking digital identities with real-world verification builds trust in digital transactions. PoH can also improve user experience, reducing customer churn rates associated with frustrating account creation and identity verification delays.

Secure data sharing enables users to confidently share personal information without compromising privacy. These innovations underscore the transformative potential of PoH in fostering a more secure and efficient digital identity ecosystem.