ShoCard, a startup developing the ability to embed identity info on the blockchain, has secured $1.5 million.
According to TechCrunch, the investment was made by Morado Ventures Partners, AME Cloud Ventures, Enspire Capital and Digital Currency Group. It will go toward growing the team and signing more partnerships.
The startup lets you certify and upload your ID into the blockchain for retrieval at a later date. A ‘ShoCard’ represents a small file that only the ID holder can manipulate. A physical ID is scanned with a mobile device and then signed. The app then creates a private-public key pairing in the same manner as when a bitcoin currency transaction is sent to the network.
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The company is targeting financial institutions to use its solution to “check identity on every transaction, virtually eliminating fraud,” and streamline the process.
One example is to replace the current procedure whereby some e-commerce websites redirect shoppers to their online banking page to verify identity. Instead, the app, retrieving data from the blockchain, fulfills this function.
The startup’s founders, Armin Ebrahimi and Jeff Weitzman, argued that solutions like 3-D Secure have failed to gain traction due to a poor consumer experience. They aspire for identification cards to become mobile, similar to what Apple Pay is doing for credit cards.
The funding is the most recent example of investment in the nascent blockchain technology space, which is envisioned to radically alter how important information is transmitted, stored and verified.