Okay, so we've got some guests joining us on stage now as speakers.
We're also connected in Riverside, so we're just going to do a quick mic check.
Hey, Jaris, can you test your bass's audio?
How am I coming in loud and clear?
Yep, I'm coming in loud and clear.
We've got some people joining in, and I think we're going to expect quite a few more joining us today.
Okay, so we're going to hop into this in just a second.
So, again, how are we coming through in the Twitter space?
Does everybody hear me okay in here in Twitter land?
Yeah, we're coming in loud and clear.
Well, I think we're pretty much ready to go.
We are recording on both sides.
We're going to do a quick intro to this space, and we'll get it kicked off.
GM, GM, everybody, and welcome to week four of our blockchain privacy-themed series.
Data privacy and ownership is one of the most important issues of our time, and in today's world, our personal data is constantly being collected and sold, often without our knowledge or consent.
It's used for a variety of purposes, including targeted advertising, surveillance, identity theft, and much, much more.
Bankless DAO is shining a light on the innovative solutions being built around Web3
that will help users take back control of their digital footprint.
Today, we're looking at decentralized identity with IDOS, who are building a Web3 identity layer and aiming to revolutionize the way we manage and control our digital ID in a decentralized world.
But before that, we would like to just shout out our sponsor, who also happens to be part of the IDOS Builders Collective.
Despite what you might think, privacy and Web3 are not synonymous.
Privacy exists on a spectrum, but Web3 can return privacy to its rightful place as an individual choice and makes it negotiable.
Meet Aleph Zero, the blazingly fast public blockchain that balances privacy-enhancing features with tools that enable programmatic compliance.
Protect both your individual data and the competitive advantage of your enterprise with Aleph Zero.
Learn more on alephzero.org.
So, I'm NF Thinker, and as always, I'm joined by my co-host, Jairus James.
Before we start, please note that none of us are financial advisors.
The discussions held here are for educational purposes only and should not be considered financial advice.
Remember, do your own research.
So, Jairus, with all that said, would you like to introduce our guests?
Jim, Jim, and welcome to another AMA.
It's part of our privacy-themed series.
We have two truly exceptional guests joining us today, Luis, who is the co-founder of IDOS and the CGO at Fractal ID.
Previously, he worked at Outlier Ventures, where he led the investment team and executed over 100 investments.
Luis also worked as a senior management consultant for over five years at Simon Kutcher & Partners
and holds a bachelor and two MSC in management and strategic marketing from East State and LSE.
Joining Luis is Ilya, the co-founder of Near Protocol.
Ilya has more than 10 years of industry experience, including three years at Google,
where he was a major TensorFlow contributor and managed the team-building question-answering capabilities
for the core Google search, as well as being the author of several notable research papers.
Ilya has appeared in the Wall Street Journal, CNBC, Bloomberg, Time, Wired, New York Magazine, Forbes, and TechCrunch.
Excited to have you guys on and learn all about IDOS and how it's enhancing the management of digital identities in the Web3 space.
Without further ado, let's dive right in.
Ilya, can you give us a brief rundown of your blockchain origin story
and the kinds of problems that you're personally working to solve?
And also, how has Near been involved in the formation of IDOS?
So, yeah, my kind of, as you mentioned, background is really coming on the AI side.
And I actually left Google to start an AI company, which was called Near AI.
And we were using what pretty much I worked on in Google, which was Transformer Models,
to start teaching machines to program.
Now, this was 2017, and we did not have Microsoft money to build, you know, huge clusters.
And so we were trying to be smarter and get more interesting data.
And so we had a ton of students around the world who were writing small programs for us,
writing descriptions for code for us, and we needed to pay them.
And if anybody ever tried to pay people around the world, it's an extremely hard problem
because every country has very different requirements, has different controls.
Students don't have bank accounts.
And we started looking at blockchain as really a solution to this global payments network problem
And at the time, so 2018, already the fees on Bitcoin and Ethereum were way too high
for the amounts we were paying, which was like 10, 15 cents.
And so we really started thinking, like, how do we get to something that, you know,
can be subset, production fees, can be really quick, easy to use, easy to access for people,
but also easy to build for developers.
And that's really how we went from Neo AI to Neo Protocol, kind of focusing on all of those efforts.
And kind of, you know, fast forwarding, and we launched Mainnet, we built kind of the ecosystem across the board,
but this need to actually have a way to really easily pay people a state there, right?
Even though we have kind of this peer-to-peer way to transfer money, but as soon as you are an organization,
as soon as you are a company that actually provides services, you still have all the same compliance requirements,
like even if you use blockchain, right?
Blockchain is just a tool now, right?
It's a programmatic, efficient tool with subset transaction fees now and, you know,
one second settlement time in their case, but it still requires all the KYC.
And so that's where we started kind of looking around for partners,
and Fractal was somebody who we actually already worked on to do KYC for some of the efforts
to really figure out how do we close this gap?
How do we make sure that as we are paying people or people are participating in various efforts,
there is actually that compliance gap that's closed?
And so, I'm sorry, I was just going to say, and to solve that KYC issue there,
so the way I'm picturing it, like the way that IDOS comes into play,
does it allow for like a user to put up an identifier such as, let's say, a driver's license
and then encrypt that type of data so you can prove that you're the owner of that identifier
without actually having to display that identifier outright to the third party?
Yeah, actually, why don't we just actually let you give Fractal ID a bit of an intro, Luis?
So, yeah, why don't you give us some background on Fractal ID
and what is it you're bringing to the IDOS back?
Thank you for having me here and Hailia for also joining us today.
So, my background, and you kind of mentioned before, it's not technical.
I actually come from the business, finance, marketing side of things.
I had a very, I would say, corporate career until around five years from now.
So, everything focused the normal way how the world develops,
how you have companies that become big,
and then there's big companies build wall gardens to keep their users
and to keep their business.
Whenever I moved into Web3, and I did that through mainly through venture capital,
what I realized as well is that there are a lot of solutions in Web3
that are Web3 native, and I am the one, actually the first one,
that came through DeFi NFTs.
But those are solutions that live in Web3 and are for Web3,
but don't transcend into the real world.
So, something that I was thinking is, okay, so what is really needed?
So, we can take these advancements that we have in technology
that we have built into Web3, the composable way of building,
and we can take it to the real world.
And actually, there was not that much interest into it
until I would say one year or one year and a half from now.
But now there are a lot of solutions that actually allow you
to virtually build a Web3 neobank, a composable neobank with many services.
But there's still one missing piece today, which is, in my view, its identity.
Something that allows you to, as Ilya said, blockchains are not exempt of compliance,
but still to be able to take the DeFi financial world and moving into the real world.
And that, I believe, is the way to onboard the next billion users.
That's why I joined as well Fractal AD, and that's why as Fractal AD,
we contributed to build the IDOS, the Identity Operating System,
to have a layer where we can truly have the centralized identity
and go to where people are today, which are the major blockchain ecosystems like NIR.
And also, what was the primary motivation behind creating IDOS?
Like, how did that come about?
And how will that transform the landscape of digital identity?
And would you say digital identity is the same as decentralized identity?
Is this a question for me?
So, well, I think that identity, I look at the identity of how someone or something,
but especially how someone identifies themselves.
So, what makes someone unique?
Everything has an identity, but not necessarily everything has an identifier.
And that's important, especially on the Internet.
In the regular world, you just go somewhere with a document that the government gave you.
You show that to the person, the person that looks at you.
You're the same one in the picture in the document.
That is how you get identified in most places.
When you move this to the digital world, into what I would call digital identity,
Because the person is not physically there, and also the identifier is not physically there,
or the identifier is a piece of code of data.
And you need to make sure that that is not tampered, and that actually belongs to the person that gave it to you.
So, that becomes much more complex.
Then comes the centralized identity, which is what enables these identifiers to not be owned by companies that, in theory, own your identity,
and then they can share with others.
But thanks to blockchain technology and cryptography, now you can have back your identifiers,
and then you can selectively share them.
And that's the vision of the IDS, or the vision of any company that is building the centralized identity today,
which is giving the identifiers back to the user, and then allow the user to connect them anywhere on the Internet.
Okay. So, this is all really about verified identifiers, and being able to verify a specific person saying who they specifically are.
It's almost like bringing humanity into the digital realm, right?
Because we are here to prove that we are a human.
How do we differentiate ourselves, not just from other humans, but also, more importantly,
AI. So, is that something that you have to constantly combat, is AI identifiers and how people can skirt these sort of KYC requirements through bots?
Is that an issue for you yet?
That can be for either Luis or Elia.
Feel free to take turns on these questions.
So, I can maybe mention a few things.
One is, so, we actually used, well, we started using this Fracto, and now it was IDOS,
expanding for proof of humanity to leverage for our near digital collective, which is our governance elections.
And so, the elections were designed to be one person, one vote.
It was an interesting experiment in the near ecosystem to truly see if we can have, like,
a more equitable, kind of, community voting versus a, you know, plutocratic token voting.
And so, we used, kind of, this approach with, you know, some form of proof of humanity verification to evaluate it.
And then, it's interesting, like, because it leaves an artifact as well that others can use now, because this account went through this verification.
And now you can leverage that in other applications as well.
But I think, broader speaking, for me, kind of, Luis mentioned, like, this neobank idea is, like,
we're trying to really bring, kind of, this, you know, blockchain technology to the level where you, as a user, have homage of your assets, right?
I'm originally from Ukraine.
I mean, we have 100 banks that failed in the past 10 years.
In the past one year or one and a half year now, sadly, like, you know, a bunch failed for a clear reason, right?
And in the West, maybe it's not, like, that a big of a deal.
But in many, many developing countries, it's a real problem.
And so, having an ownership is really important.
And blockchain kind of starts to provide this, but it doesn't connect to, like, a lot of the real world interactions, right?
Again, because of this requirement.
And it's not the humanity requirement per se, right?
It's the fact that you need to prove that you're from this country.
We need to prove that you're not from some country, right?
And so, those things are really important and kind of really block the adoption of this technology, right?
Like, we could all be using, you know, like, Apple Pay card that's backed by Nier account, for example.
Like, it's totally possible.
But we are not because it's really hard to, like, get everybody to approve and remove fees
because they expect a ton of potential AML issues and fraud.
And so, kind of, for me, IDOS is, like, really this direction of, like, how do we move the, you know,
reduce fraud dramatically and make sure that everybody feels that, you know,
there will be no kind of money laundering the way that people expect to happen.
And instead, we have, like, compliant, you know, clear, visible, transparent,
but owned by the user ecosystem of financial products.
I think that transition, right, transformation that needs to happen from, like, in people's minds.
Like, we need tools and kind of frameworks and compliance for that,
but now we need this transformation on the other side to happen.
And that just takes us one step closer to permissionless,
truly permissionless banking and trustless banking.
And, you know, not having to, not having to, we were actually just talking about this before.
I'm wearing my bankless card shirt because bankless card is launching soon.
And, you know, we're taking a very traditional approach with our initial car launch,
but long term, we would love to provide more decentralized tools in that payment stack.
And one thing that doesn't exist is a non-custodial fiat account.
A fiat account, unless you're holding cash under your pillow,
all of your cash is in a custodial account through a bank.
I don't know of any other non-custodial banking accounts that are actually out there in the fiat realm.
So, you know, once we can prove that terrorist activity isn't taking place on chain
because this person is linked to an identification and can be slashed,
or however you want to put it, can be penalized somehow if they do something wrong,
that's going to move us towards the fiat system starting to trust us more.
With trustlessness comes trust, I suppose.
So before we go off too far in that direction,
I'd like to just touch on IDOS and the building partners that you have.
I think your site lists five orgs.
So you've got Fractal ID and NIR, both of whom you both work with,
Aleph Zero, Quill, and Gnosis.
So they each bring something different to the stack.
How would you classify each partner's contributions,
and what's it been like working together?
Yeah, well, so I think that this has started,
we were in talks with all these partners of ID before,
and we actually went for it.
What actually made us say, okay, there is a way to go here,
was initially talking to NIR.
So we were talking to NIR, and this was, I believe, in May of 2023,
which is when we started working together.
And we actually saw that there was a need to build identity layer
and understanding an identity layer as a platform that hosts user data,
but that doesn't have a single point of failure.
What happens with most identity verification providers,
and that includes Fractal ID,
is the fact that data is still stored either in centralized servers
or it is stored with the user.
But none of the solutions worked for the use cases that we need today,
especially the financial use cases that require some degree of compliance.
So coming up together to create this network
is really what makes a difference.
Well, to talk a little bit about the contribution of the partners,
so Fractal ID, we have been around since 2017.
We have built a lot of different identity solutions.
We have tried everything.
We have tried identity wallets.
We have tried NFTs for identity.
We have tried monolithic identity change.
We have tried all those setups.
And eventually we found, and we know this already for a while,
that decentralized storage and an access management protocol
is the way to go if we really want to have
fully decentralized chain agnostic identity in Web3.
So that's what we wanted to build,
and the knowledge that we bring is on the identity side.
Quill, they have been working for several years
on relational databases for Web3.
So basically they are the ones that essentially create
this decentralized storage network
that have different node operators that share a consensus.
And then working with NIR as well as Gnosis and AlephZero,
the idea comes from all of these blockchains
having a shared idea with us,
which is we need DeFi to reach the real world.
And in order for that to happen,
we need to figure out the legal sides of it.
Yes, we kind of did already.
We need to figure out the technical side of it,
which we kind of did as well.
But what is more important is we need to figure out the UX side of it.
And saying that we need to fix the UX is very easy,
but actually doing it, it's very, very hard.
One of the main points of pain here is simply the experience around KYC,
the experience around compliance.
So what we're trying to do is to make it more smooth.
And these blockchains, I think, also had this shared idea,
and that's why we're building together.
Anything you'd like to add there, Elia?
Yeah, I completely agree.
It's pretty much identity.
And beyond banking, there's a bunch of other use cases.
As I mentioned, governance has been another one.
But I think generally speaking, as Luis mentioned,
how do we bring identity that's available as a building block
that now can leverage this?
And you do need different pieces to come together for this to really work.
And so, yeah, I'm excited to kind of this coming together.
There's obviously still a ton of work,
but this is not primitive that's available for folks.
And so before we just move on from your partners,
do you have any external influences who've really helped guide your path here
or any trusted advisors that you've been working with
who have made a big difference in your operation
beyond your five builder communities?
Who have you lent on the most for support?
Is it Ethereum Foundation involved at all?
Any other big foundations or any other token operators out there
who've been your biggest supporters in this?
I mean, well, we had many supporters for many years.
But at the end of the day,
I think that everything comes through the realization
that we really need this in the internet.
I'm saying on the internet to actually build internet-based companies
that don't farm user data.
I couldn't be able to think of any specific influence as a person.
I would say that the influence is the market itself
and the natural development that has taken
and how things has gone up and down for several years
and actually until getting the realization
that if Web3 is an echo box
and we have only native use cases for native applications
and the money that comes in doesn't really go out
or it doesn't get put to use,
then that's not going to go anywhere.
But if we can use the advancement in technology from Web3
to apply it to industries that are outside of where we are today,
then I think that makes the whole difference.
So I would say that the best mentor
has been observing the market itself,
being around for a long time
and making sure that you try to adapt to the changes.
And we'd like to learn a bit more
about the composability of IDOS.
So, you know, as people contribute to the space,
whether, you know, being a DAO member or what have you,
you know, people would pretty much build their reputation
So, like, how can users aggregate accounts with IDOS?
Is that possible to be able to manage multiple digital identities
across various blockchains?
And how does iOS differ from something like a disco data pack,
data backpack, for example?
I think before being able to answer that,
I need to explain a little bit of the architecture of the IDOS.
So essentially, the IDOS is, it has two elements.
It has a decentralized storage network of nodes
that has multiple node operators.
Those node operators host user data,
but this user data is encrypted with the user keys,
which means that the only ones
that can actually access the data are the users themselves.
Then you have an access management protocol.
This is nothing else, the smart contract
that can be deployed across different blockchains.
Right now, we have one of these deployed in Nier.
As a user, now you can either add data yourself
or you can ask anyone to verify some data
and then add that into your private profile
So for instance, everyone will trust you
if you want to self-attest that you are vegetarian,
but nobody will trust you if you self-attest
that you have a KYC status
and that you are from a specific country.
We will always need identity verifiers for this bit.
So that's why the idea is that we can have
multiple identity verifiers
that they can issue at the stations
in the form of verifiable credentials.
And then the user is stored these
in their private profile.
Then the user can go anywhere around Web3
where these access management protocols,
smart contracts have been deployed
and any application can ask the user
to share a credential with their data.
applications just need to install an SDK
or they can do without the SDK,
but it's much easier with the SDK.
It's something that any Web3 developer
should be able to do in a couple of hours.
And what this allows is for any application
or anyone in Web3 virtually,
whenever a user connects to them
which could be any of the near wallets
like Meteor or my near wallet or here,
or MetaMask at this point as well,
to just agree to share a credential with them.
That's what we call an access grant.
That's something that gets recorded
then basically you have a system
where in the one side you have issuers
that are able to issue the stations
Users can host data into their own profile
and then applications can very easily
without the need of additional wallets
to ask users to share that data.
Maybe to expand on as well from our side,
like kind of Adirios provides the storage
for private data and other stations.
And then on our side as well,
we've been working on a few things.
One is near accounts in general
are highly kind of come as account obstruction,
come with a lot of kind of functionality preloaded,
as well as we've been building
and a lot of other signals on chain
that build up your reputation.
kind of reusing some of this information
to then kind of for next developer
to not needing to get their users
to go through everything,
but you can kind of capture
all the signals directly,
or something from on chain
and leverage it in your apps.
And I think that's kind of fundamentally
that you cannot have in that too, right?
It's not like you can easily say like,
I want to leverage Facebook
and make sure it never disappears.
all of those things disappear all the time.
But the other thing actually
is what we call account aggregation,
where the one near account
to use the same information
the stations that you already have
layer twos and layer ones.
It even supports Bitcoin,
kind of these interactions
and then you can navigate
all apps across all chains,
kind of not needing to think,
some other compliance checks
kind of on-chain reputation
and unlocks you more things.
like it's this interconnectivity
developers get benefits from
as we see more use cases,
more value to each other.
So that's really interesting.
you have a Coinbase account
which has your compliance,
You have address on Bitcoin,
you have address on Ethereum,
you have address on Solana,
you have address on Near,
You have a non-custodial account
kind of key management system,
you have eventually other services.
all the letter to addresses,
it's like going to a website,
Remember when you used to
That's just a user experience
onto the de-storage network,
from the modular approach
so to answer your question,
any other EVM chains in a
the building partners that
layers of blockchain just
really need to do it, the
We need to make sure that
blockchain ecosystems that
there's applications that
we have a cross-chain kind
go to the real world with
So our main priority is to
and that actually works in
But as I said, anyone can
this multi-chain, we call
actually a way to leverage
can actually get access to
all the chains that will be
Bitcoin and, yeah, pretty
that came to mind as we had
today, I was thinking like
IDOS basically can be used
for improving operational
centralized server, if you
breaches, for an example,
could definitely do that.
Like you don't have a data
You don't have a place that
data from a million users
keys, which means that you
security into the system.
What it also adds security
is that you have multiple
being off from the system
whole system is off, which
also adds security in this
So you remove that central
What's the, what are some
cases, like from the near
that wanted to use it for
So proof of personhood, we
saw people that wanted to
build reputation scores on
We saw people that they just
So as a substitute of KYC.
So there are a lot of use
cases that, that, that can
be taken care of by, by the
And there's many that are
What I'm very excited about
as well is, well, what we're
improving the UX of this,
like our goal is that as a
user, you are interacting
with Web3, with your regular
your wallets ask you if you
So actually that you don't
really feel that the IDOS is
Right now it's not like this.
Right now we can't really
improve the UX, but that's
going to happen very soon.
Actually by end of year, we're
going to have a very, a much
We're working on deleting
working with a system that
is similar with what NIR has
So working with pass keys.
session keys, session keys
and similar ways to be able
complexity and many of the
signatures that would happen
into the system, but still
centralization that we want
and the degree of security
And it always comes back to
Decentralized first approach.
Centralize in your efforts
decentralize everything else.
So how can people who are
listening get involved and
what roles can they play in
shaping the future of IDOS?
Well, so as I said, this is a
public network and it's going
to become more and more, more
and more public very soon.
If you are a user and you want
to use the IDOS, you can go to
near.org and you can just use
your regular .near profile to
also get a credential that you
can see from there and you
different applications on the
near ecosystem first and then
anywhere else from that very
If you are an application, you
can install the SDK today.
You can just put it in your
people or users that connect a
wallet to your application to
also share a credential that
they have in the IDOS or send
them through an onboarding
journey through one of the
And if you're an issuer and
you're looking actually into
issue credentials, you can
So it's something that also
works through the SDK today,
but in theory, everyone would
More information, just go to
There you would find all the
relevant links and all the
GitHub, everything is open
So, yeah, just looking forward
If anyone thinks that it makes
sense to work together, very
And if there's one thing that
we're missing is actually more
people to build together with
We have a lot of applications
We have a lot of things that we
know we have to fix and time is
actually the resource here that
So if anyone wants to come and
build together with us, they're
Ilya, anything you'd like to
add before we wrap this space
No, I think, I mean, definitely
There is a ton of apps being
And, you know, people are
starting to use, there's like,
you know, I think, Yellow,
For example, app, which is, you
know, that you are a human
So like you can start from that
fork it and start, you know,
So, but also you can, you know,
commutation from Ideas Network and
build more new cool things.
But yeah, kind of check out
You know, you can discover
components, you can search for
them, and you can, you know, as
you sign up, you can start
exploring with the developer
So builders, get building.
asking questions, you know.
For me, this looks amazing.
I'd really like to be able to
build this into some of the
projects I'm working on right
And so, yeah, we'll definitely be
Jairus, anything you wanted to
add before we wrap up here?
Really enjoyed the conversation.
I definitely would like to
Like, currently in Rarible, we're
working on a delegate score, and
we pretty much determined that
based off of forum participation,
the quality of the post that was
made, who are actually engaging
with the users, and then their
voting history on tally as well.
You know, creating a delegate score
out of that, and then also like to
take that further and create on-chain
achievement badges for certain work
that's done and certain levels of
participation on forum as well.
And that would be represented on,
you know, whatever chain we decide
to launch that CT on, whether it
be, you know, whatever L2 we
But what I'd like for that, I
identify her to be used across
multiple blockchains here, and I
They definitely help in that
So, yeah, definitely expect to be
I'd love to test this out for
myself and for these other DAOs that
Yeah, so plenty of room for
collaboration here between Bankless
DAO people, IDOS people, NIR and
Fractal ID, and all the rest of the
partners involved in the IDOS stack.
So super excited to see what's going
to come out of all these different
Yeah, thanks a lot to the IDOS
team for joining us today, or should
I say, Ilya from NIR and Luis from
IDOS for joining us today.
You know, we really enjoyed having
you guys here and presenting for the
I think our community was really
looking forward to this one as well.
I posted about it in the forums, and
somebody was excited to hear about
it because he's actually building with
IDOS himself in one of his
So, yeah, so we're just keeping the
Follow IDOS on IDOS underscore
network at Twitter, and check out
their website to see how you can get
Quick ad read for the way out from
our sponsor, LF Zero, who you'll be
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I'm actually going to, before we
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week as well, so anybody can join on
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So next week, we'll be joined by the
We're going to hear all about that.
And quick reminder just to everybody
that we're not financial advisors.
We are from Bankless DAO.
We're on a mission to create user-friendly
on-ramps for people to discover
decentralized financial technologies
through education, media, and culture.
We have a healthy ecosystem of builders,
designers, community managers, and governance
leaders working tirelessly at the frontier
of the blockchain ecosystem.
Join us today by visiting our website
and our Discord and saying hi.
And until next time, folks, until next week,
we shall see you in the Twitter and see you
around the different builder groups online.
And if you have anything that you'd like
to share with us, feel free, reach out
If you want to get in touch with Luis and
Ilya, you got their handles here.
So thanks a lot, everybody, for yet again
And we'll see you next week.
Happy Thanksgiving, everybody.
Yeah, happy Thanksgiving.
I'm American living in the UK,
so I'm going to celebrate in my own way.