Digital neo-banking platform Cogni introduced a new Web3 product to enhance crypto users\u2019 experience by blending Web3 and digital banking features. The solution was developed to port Web2 know-your-customer (KYC) information into a Web3 medium.<\/p>\n
Cogni, a New York-based neobank that offers access to Web3 products, announced on Thursday it is launching a \u201cWeb3 Passport\u201d \u2013 a ready-made solution that transfers users\u2019 Web2 KYC information to a Web3 environment using the Polygon PoS chain. Cogni said the passport would be available to a restricted number of Cogni users at the initial launch before expanding it to the general public in 2023 summer.<\/p>\n
This solution, which Cogni claims to be first-of-its-kind, serves as soulbound non-fungible tokens (NFTs), entailing KYC information. The passport marks Cogni\u2019s second Web3 product after the neobank rolled out its non-custodial, multi-chain wallet late last year.<\/p>\n
\u201cThe Passport solves the industry\u2019s biggest problems around trust and compliance. From a trust perspective, users and platforms will know the unique, verified identity of wallets \u2013 provided that the owner allows it \u2013 which will reduce the amount of fraud and inauthentic sellers in the web3 space.\u201d<\/p>\n
\u2013 Cogni said in the press release. <\/cite><\/p>\n The \u201cbank-level\u201d KYC information within the soulbound NFT adheres to the KYC standards in the US and will allow the onboarding of other decentralized apps (dApps) with no need for extra steps. As such, Cogni expects to create a marketplace of dApps that can be easily accessed and connected with just a few clicks, including KYC information.<\/p>\n Soulbound NFTs refer to a particular type of tokens that are unique and cannot be transferred or sold like traditional NFTs. Unlike regular NFTs, which can be bought and sold on various marketplaces, soulbound NFTs are permanently tied to a specific user or account.<\/p>\n Thanks to their wide use cases, soulbound tokens have been growing increasingly popular in recent years. These NFTs are often used in Web3 games, where they serve to represent unique items or characters that can\u2019t be duplicated or traded, or for digital identity verification purposes and proof of ownership.<\/p>\n Last year, Ethereum co-founder Vitalik Buterin cooperated with researchers and economists to publish a research report on how soulbound tokens can help build a rich, pluralistic ecosystem within Ethereum, also known as \u201cDecentralized Society\u201d (DeSoc).<\/p>\n This article originally appeared on The Tokenist<\/i><\/p>\n Sponsored: Find a Qualified Financial Advisor<\/b><\/p>\n Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.<\/p>\nSoulbound NFTs and Their Use Cases<\/h3>\n