Connecting you to the new data economy.
The Fractal Wallet allows users of Fractal ID to manage their KYC credentials. Users upload the information they are required to verify for KYC/AML purposes, such as proof of residence or passport photos, to their Fractal Wallet, where it is verified, encrypted, and stored securely. Whenever a user is required to verify their information — for example, to take part in an IDO — they can then use their Fractal Wallet to issue the relevant credentials seamlessly, securely, and instantaneously, as opposed to sharing the underlying data and waiting for whatever KYC/AML processes are put in place by the platform or project they are seeking to participate in. This allows for a KYC/AML process as easy as connecting a cryptocurrency wallet to a website or exchange.
The Wallet works as a browser extension. It stores credentials based on your personal data. Just like a real wallet, you remain in control of its contents; unlike a physical wallet, its contents cannot simply be stolen, because they are encrypted and protected by Fractal’s security mechanisms.
Credentials – facts about yourself such as the jurisdiction you live in – are stored in your Fractal Wallet, where they can be accessed, managed, updated, and issued. Access to the contents of your Wallet requires your consent. Once you have given this, however, the issuance of the relevant credential happens automatically, safely, and seamlessly.
Regulations require companies offering certain services and products to ensure that they have basic information about their clients or customers. These regulations are in place for a variety of reasons, including preventing money laundering.
Currently, the standard process for ensuring compliance with these regulations involves uploading officially recognized proofs of this basic information. This might take the form of government-issued IDs such as national ID cards or passports, or proofs of residence such as a utilities bill or bank statement.
This process is inefficient in three respects. First, in sharing documents such as bank statements or passports, you are revealing more information about yourself than is necessary to establish a compliance claim. This information is potentially subject to unnecessary breach risk. Second, you are revealing the actual information establishing your claim to, for example, live in a specific jurisdiction, rather than proving your claim directly through a credential. Finally, resources – time, effort, and capital – are used up on both sides in submitting and verifying information.
There is no way around the need to have your credentials verified. However, this needs only be done once. Having to verify your claims every time you want to interact with a new product or service is a waste of resources both for you and for the company behind the product or service you are trying to access. It also involves increased risk of privacy breaches for no corresponding benefit.
This problem can be avoided by having a single entity verify your claim and referring all future requests for verification to this entity. Even better, this entity can issue a proof of verification – a credential – to you, so that you can simply present your credential when asked to prove a claim rather than relying on the issuing entity to do so. Issuing this credential is the job of Fractal ID. Putting this credential in your hands in a useful format is the job of the Fractal Wallet.
The Wallet allows you to interact with credentials stored on-chain through asymmetric key cryptography. A public key is associated with the credential; to release the credential, the corresponding private key is necessary. This private key is stored in your Fractal Wallet browser extension.
When you sign up for a new product or service which requires you to provide information about yourself, the process can be configured such that a request to access the relevant credential is issued automatically during the sign-up process. This request is received and interpreted by your Fractal Wallet, which in turn asks you for your permission to respond to the request. You then have the option of confirming or denying this permission. Should you agree to the request, the rest – the actual sharing of your credential in a secure manner – is handled automatically by your Fractal Wallet.