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PolygonDID
Brief Overview
PolygonDID aims to provide Verifiable Credential and Decentralized identifier functionality as a plugin tool to dApps developed on the polygon system. It aims to provide the following functionality to developers building on the polygon ecosystem:
- dAccess-as-a-service
- Sign and Verify W3C Verifiable Credentials
- Authenticate, Validate, Register, and Generate W3C Decentralized Identifiers
- Facilitate storing credentials in a crypto-wallet
PolygonDID aims to be the go-to identity management protocol on the Polygon Ecosystem. Its applications are vast ranging from providing an easy on-boarding experience for DeFi tools to verifying educational credentials for job board dApps.
The only other project in this field is PolygonID being developed by Polygon itself. This project, however, moves away from the W3C DID standard and builds on top of iden3 protocol and circom ZK toolkit focussing on a zero-knowledge proof model. Since the DID standard has been promoted by W3C and other applications such as Verite by Circle and spruceID have already started developing on it by providing their own open-source libraries, its wide adoption is imminent. That is where PolygonDID aims to come in and start building on the DID standard.
Objectives
The planned features in the first version of this project are:
- Ability to Issue Credential
Example: Financial institutions should be able issue Credit Score
- Verify Credentials
Example: dApps built on polygon should have a plugin type service to verify credentials(following DID standard), job boards should be able to verify the educational qualifications on users
- Generate a DID
example:
More features such as dAccess-as-a-service, KYC attestation etc will be added once a PoC is delivered.
How to Issue Credentials?
How to Verify Credentials?
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Implementation
Since I am new to the polygon ecosystem I plan to implement the project in the following phases:
Phase 0: Understanding the Polygon Ecosystem and how to build dApps on it
Phase 1: Research on W3C DID and Verifiable Credential Models
Phase 2: Creation of a developer toolkit to easily generate DIDs on dApps built on Polygon
Phase 3: Storing digital identities on crypto wallets
Phase 4: Issuing and Verifying a verifiable credential
Value-added to the polygon ecosystem: dApps built on Polygon will be able to easily interact with the widely-adopted DID standard to curate their digital identities and issue and verify verifiable credentials
Why this project?
This protocol can help employ a structure in the Polygon ecosystem to deal with the W3C DID standard and provide autonomy to individuals and enterprises to interact with each other in a trust-less and private manner.
I believe this project has the potential to pave the standard for identity access management in the Polygon ecosystem. I believe in a world where the end-user has the right to privacy to their own information without compromising business success. Transformation of ambiguous untrusted data to verifiable data shared with minimal occlusion to privacy is the first step.
VALUE
Brief Overview
Domain: DeFi
There exists a gap in the market, wherein most investors are long-term investors but there are no assets truly designed for long-term investment. In absence of such assets, stocks of trusted companies and bitcoin took over but they are not designed to give you calculated returns over a long period of time.
I aim to build a token that serves as a good store of value from first principles. Any such aset will have the following three qualities:
- a fundamental value in the asset: token will be backed by an index of high-performing valuable coins
- liquidity: token will have a liquidity pool and can be exchanged with treasury of underlying tokens
- needs to be deflationary: coins backing the token will be ant inflationary
Most stores of value have limited liquidity but we will be building our own dedicated borrowing-lending platform to tackle that.
Objectives
This project essentially aims to build a good store of value for long term investors by building
- native token backed by an index of high-value anti-inflationary cryptocurrencies
- own lending-borrowing platform to aid in liquidity
Potential features that can be added:
- governance toke to decentralize the leadership of this protocol
- rewards to incentivize accumulation of tokens in accounts
Problem it solves
- good store of value
- targeted towards long term investors
- anti-inflationary
- guaranteed liquidity
Implementation
There are two components to this protocol.
Token
Phase 0: Creation of native token
Phase 1: Creation of index to back the token
- will not be using market capitalization as a measure, rather be focusing on long term risk adjusted return
- separation of speculative and fundamental value
- will be using velocity(how quickly a coin is being used) as a measure to avoid using coins trading above their fundamental value
Lending and Borrowing Framework
Phase 3: Building lending and borrowing platform on top of polygon
- Borrowing
- like compound, interest rate will be determined by utilization rate
- Lending
- allow users to lock up money for different long intervals of time
- the locked-up money can be lent out and staked to yield interest
- interest earned should be dependent on
- number of people borrowing
- lock in period
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Why this project?
I have been thinking about properly investing into crypto assets for a while now but unfamiliarity and poor onboarding experiences have prevented me so far.
Most people like me are not interested in closely following projects to yield returns. A token specially designed to yield returns for long-term investors without any fuss and backed by a strong community is missing from the web3 ecosystem so far.
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