European Commission Chooses Iota Web3 ID for Blockchain Sandbox

The European Commission’s selection of Iota’s Web3 ID solution underscores its potential to revolutionize KYC processes through distributed ledger technology and large-scale tokenization. 

The European Commission unveiled the participants selected for the second phase of its European Blockchain Sandbox initiative (EBSI) on June 13, featuring Iota—a leading open-source distributed ledger and cryptocurrency ecosystem. 

This emphasizes Iota's Web3 ID solution, developed in partnership with Walt.id, IDnow, HAVN,and Bloom Wallet.

Iota emphasized that this selection marks a significant milestone for its identity solution, stating:

"This paves the way for regulatory conversations on KYC and privacy within a Web3 framework, particularly timely as regulators are reassessing their strategies for decentralized finance (DeFi). "

The EBSI, launched by the European Commission in 2023, serves as a testing ground for distributed ledger technology (DLT) solutions across multiple industries.

Sandbox Initiatives

In addition to Iota, the selected projects include RealEstate.Exchange (REX) DigiShares, the document and business-focused blockchain DoxyChain, the smart contract and blockchain security analysis project Hacken, and the artificial intelligence-driven knowledge infrastructure project Origintrail. 

Iota’s Web3 ID solution aims to reform the traditional Know Your Customer (KYC) processes, which are often plagued by inefficiencies, high costs, and privacy concerns. 

The solution involves implementing a reusable KYC system using distributed ledger technology (DLT) and tokenization to enhance security and user control over personal data. 

According to the developers, the process starts with remote identification conducted by IDnow, ensuring user compliance with EU Anti-Money Laundering (AML) and KYC regulations.