TezID IDZ: An Identity Oracle on the Tezos Blockchain

By 2sats | 2sats | 19 Feb 2022

*obligatory not financial advice*

What is TezID?

TezID is an identity oracle that allows its users to connect their Tezos address with an email address, a phone number and eventually even government IDs. This can be used to prove that an address actually belongs to a human being that can't connect multiple addresses to a proof of identity. Such an oracle could allow the creation of dApps or features that can only be used by real humans and no institutions or bots or the like.

Connecting a proof of identity to a wallet is very simple. You just have to connect your wallet to the TezID platform and enter an email address or phone number. Then you will receive a verification code that you can enter to prove that the email or phone number is yours. This will cost a fee of about $10 in XTZ or IDZ and the oracle will store your proof of identity for 365 days. Then other applications that require some sort of identity proof can connect with the oracle to see if you really are a human.

TezID is partnered with Passbase which also makes it possible to connect a government issued ID with your Tezos address. So TezID could make it possible to create smart contracts and DAOs that can only be accessed by people that live in a certain country or even certain areas. That could revolutionize things like voting, so that all votes can be seen and verified on the public blockchain and you would know that all votes come from allowed humans while the addresses stay anonymous (or as anonymous as a public blockchain can be).

Some people might be afraid of connecting any personal data with a cryptocurrency address and rightfully so. That’s why TezID stores on-chain only what type of proof you used, when you registered it and of course whenever or not you have a proof connected to your address. All data is also just stored as a series of hashes that would be mostly useless for anyone who attacks the platform. Also you could use one address with ID for applications that need it and use another one for everything else.

TezID has its own token that will earn a share of the fees and the platform will turn some of its parts in a DAO but the platform requires some off-chain services so it will always be at least partly centralized. The identity oracle is currently used by only a few other dApps like a NFT marketplace called Versum and a survey platform called YayNay. The platform could gain a lot of traffic and value if it’s utilized by more applications but at least for now it is processing barely any transactions because there is no demand for providing any sort of ID on a blockchain.

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The IDZ Token

IDZ is the native token of the TezID platform. The protocol will turn large parts into a DAO and IDZ will work as its governance token. The token holders will also earn a share of 50% the earned fees for registering a proof. The token can also be used to pay the ~$10 registration fee but to keep things simple for new users you can also pay in XTZ, in that case the protocol will automatically swap it for IDZ to pay the fee.

There is a max supply of 10,000,000 tokens. The founders and advisors got 32% of all tokens which are being vested for 3 years, 15% were sold to investors, 2.5% were used for the initial liquidity on the Quipuswap DEX, 0.5% were airdropped to early users and the remaining 50% are held in an incentive pool that the founders can use for incentives to make other developers integrate TezID in their applications or for things like farming rewards. Currently most of the supply is controlled by the team but this will hopefully change soon by distributing the incentive pool.

The public sale happened on the Rocket Launchpad which has since merged with the Crunchy DeFi platform where you can also earn more IDZ tokens by staking XTZ / IDZ Liquidity Pool tokens from Quipuswap, this farming opportunity will end on March 31st 2022.

Since the token will earn a part of the collected fees and has a max supply, its value depends on how many people are connecting their identifications with their Tezos address. Currently there is pretty much no demand for doing that because there are almost no applications that utilize TezID, as a matter of fact TezID hasn't had any interactions in the last 30 days and the only time the usage of the dApp really spiked was after the founders teased the airdrop. Still there could be many useful applications built with such an oracle and TezID could gain a lot of value but this could take a long time.

IDZ cannot be bought on any centralized exchange right now, but you can buy it on Quipuswap if you have some XTZ. You can store your tokens in a Temple Wallet which you can also use to interact with the TezID platform.

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