Fractal ID

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Introduction
The Company
Vision and Mission
Strategy
Fractal ID, Protocol & Wallet
Token
FCL Token Incentive Model
FCL: ERC20 vs Substrate
Fractal ID
Simple online identity verification (KYC) for businesses and users, making web3 a safer place for everyone.
What is Fractal ID?
Fractal ID is an identity verification platform, ranging from human uniqueness for sybill-resistance to KYC/AML (‘Know Your Customer/Anti-Money Laundering) for regulatory compliance. Fractal ID allows businesses to outsource part of their regulatory compliance needs without compromising on transparency and integrity. All sensitive data are encrypted and subject to state-of-the-art security processes. 
Identity management is the backbone upon which fair and transparent exchange of web user information is built. Fractal ID leverages blockchain technologies - more specifically the technology of the Fractal Protocol -  to provide decentralized identity solutions (DID) enabling secure, selective disclosure. 
"Want to sign up for a cryptocurrency exchange or open a stock brokerage account? Tap a button to share credentials with the company on the other side, allowing them to verify you without revealing any of the underlying personal information."
"Modern DAOs struggle with providing their users with a fair voting system in which one person has one vote. Fractal guarantees that every participant of the DAO is a unique living person, moving beyond token governance aligned with Vitalik's vision."
What problem is Fractal ID solving?
The Problem
Web3 has been experiencing significant growth over the past three years with more users finding valuable opportunities for investments and growth, and more businesses are joining to lead a competitive and diverse ecosystem. See figure 1. 
Figure 1. Total DeFi users over time. Source: Dune.xyz​
However, the current version of Web3 is in dire need of identity solutions that ensure users' safety while maintaining data privacy. 
The anonymous nature of Web3 has worked well for permissionless innovation and will always be a relevant feature, however, it also presents a significant risk to users and businesses alike; in 2021 alone, investors lost a total of ±$10B in DeFi scams and thefts. This is triggering both users' and regulators' concerns, and in turn, standing as an obstacle to mass adoption. 
Identity management solutions can provide a layer of security in web3 by ensuring all parties involved in a transaction or all DAO events and airdrops are unique and validated. 
Moreover, DeFi is not the only sector in which identity management plays a crucial role. Hence, our long-term strategy encompasses other industries in addition to Web3. For example: to truly compete with the AdTech sector, significant advances in identity management are needed to allow for privacy-preserving matching of user characteristics with advertising goals in ways that respect the autonomy of users. AdTech relies on end-user uniqueness for key indicators such as performance measurement, conversion tracking, attribution, and frequency capping. Moreover, more than 99% of online ads are currently ‘viewed’ by bots rather than human end users. To determine either uniqueness or human liveness, identity verification mechanisms are required.
The Solution
Fractal ID provides a seamless, secure, and simple solution for identity management and regulatory compliance. Here’s how.
In our interactions with others, on- and offline, we regularly require or are required to provide personal information. We may, for example, need to prove that we are 18 or above to purchase alcohol; or we might need to prove that we are, or are not, a resident of a particular jurisdiction to participate in an IDO. The way we currently provide this information is inefficient because we are giving away more, potentially sensitive, personal information than necessary for the purpose. To prove that we are adults, for example, we might show our passport or ID, which shows not only our date of birth but also our legal names. Similarly, to prove that we meet jurisdiction requirements we might upload a proof of residence, such as a utilities bill or bank statement, revealing our address and potentially giving clues about our financial circumstances.
This inefficiency arises because we are providing underlying, personal information when all that is required is a credential. A credential is a proof of identity, qualification, or parts thereof. To prove that we have completed high school, for example, it suffices to show a credential in the form of a diploma; we do not necessarily need to provide further, potentially sensitive, information in the form of the underlying grade transcript.
Fractal ID allows for privacy-preserving compliance by issuing verifiable credentials. Users upload their underlying personal information once only while setting up their Fractal Wallet. This information is then verified by Fractal, encrypted, and stored securely in Fractal's databases or on the Fractal Wallet. Whenever a user needs to prove something about themselves, they can then share credentials issued by Fractal rather than the underlying information itself. A user looking to take part in an IDO could thus issue a credential proving their residence in a jurisdiction that allows IDO participation, without ever revealing more fine-grained information such as their address. In the jargon, this is known as selective disclosure.
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Outline
What is Fractal ID?
What problem is Fractal ID solving?