Seeking champions for grant fund #189 BlockID - Network based identity Verification & Data Sharing
Good Morning Grants Discussion Group.
Kurtis Wright, COO of Block Infrastructure here, along with CEO Richard, CTO Josh & CDO Suhu.
We are seeking champions for Dev Fund proposal #189: BlocklD - Network Based Identity Verification and Data Sharing utility
https://github.com/canton-foundation/canton-dev-fund/pull/189
BlockID is a tokenised KYC distribution network which is 18 months in the making.
We have been working with a select group of financial services regulators, financial intelligence units, information commissioners/data protection authorities, governments and tier1 multinational financial services organisations.
This outreach across multiple jurisdictions and international financial centres has helped us to gain insights and feedback to help shape and build our POC with industry and participant needs at the forefront of design which is also ensures alignment to multiple regulatory requirements and FATF compliance obligations.
The KYC distribution network has also been presented to the partnerships, developer relations, ecosystem and network growth teams at Digital Asset, along with a c-suite member at the Canton Foundation.
We have made the decision to re-platform BlockID from another network across to the Canton network. Our grant fund application will allow us to expedite the migration and shorten the timeframe it will take for the compliance benefits and value-add to be created for all current & future participants on the canton network.
For parties who are interested in becoming a champion, we are happy to provide a demonstration and walk through of the solution.
Which will also help to feed into our 2nd grant fund proposal for #190: BlockTravel - A Transaction Compliance Framework: https://github.com/canton-foundation/canton-dev-fund/pull/190
Were looking forward to further discussions regrading our proposal with you all.
Further details are provided below.
Abstract
BlockID is a network-based approach to identity verification and data sharing for financial and digital ecosystems.
It introduces a model where verified identity information can be reused across participants, reducing duplication and improving consistency in compliance processes.
The system is designed to:
- Enable more efficient verification workflows
- Support controlled data sharing between participants
- Align with evolving regulatory expectations around interoperability and data usage
Note: This document is intentionally high-level and omits all proprietary implementation details.
1. Objective
Identity verification today is:
- Repetitive across institutions
- Operationally expensive
- Fragmented across jurisdictions
- Limited in cross-participant visibility
BlockID explores a model where:
- Verification outcomes may be reused (subject to permissions)
- Participants can interact through a shared framework
- Data remains controlled and privacy-aware
The goal is to reduce duplication while improving overall consistency of compliance processes.
2. Conceptual Model
The system can be understood through four high-level concepts:
2.1 Reusable Verification Records
Verification outputs can be represented in a reusable format that allows:
- Discovery by other authorised participants
- Controlled access under predefined conditions
- Reduced need for repeated verification
No assumptions are made about:
- Data structure
- Storage mechanisms
- Underlying infrastructure
2.2 Controlled Access Framework
Access to verification outputs is governed by:
- Predefined rules or agreements
- Participant permissions
- Context-specific conditions
The details of how these controls are implemented are not disclosed.
2.3 Event-Based Updates
The model supports the concept of:
- Ongoing updates to verification status
- Notification of relevant changes
- Continuous rather than point-in-time processes
2.4 External Evaluation Layer
An external evaluation capability may be applied to:
- Interpret verification data
- Identify potential risk indicators
- Support decision-making processes
The methods used are intentionally abstracted.
3. Integration Approach
BlockID is designed to integrate in an additive and non-disruptive manner:
- Existing systems remain unchanged
- Participants can adopt incrementally
- Integration occurs through standard interfaces
The model supports multiple environments and participant types.
4. Design Principles
- Privacy-Aware by Design
- Sensitive data is not unnecessarily exposed or distributed.
- Interoperability
- Supports interaction across different systems and participant types.
- Flexibility
- Allows adaptation to different regulatory and operational contexts.
- Reusability
- Encourages reuse of verification outputs where appropriate.
5. Milestones (High-Level)
Phase 1 Foundational Capabilities
- Define reusable verification constructs
- Establish integration patterns
- Demonstrate basic participant interaction
Phase 2 Expanded Evaluation
- Introduce broader evaluation capabilities
- Support multi-party scenarios
- Validate operational performance
Phase 3 Network Expansion
- Enable wider participant access
- Demonstrate cross-sector applicability
- Validate commercial interaction models
Phase 4 Production Readiness
- Complete testing and validation
- Prepare for broader deployment
- Align with regulatory expectations
6. Compatibility
The framework is designed to be:
- Backward compatible with existing systems
- Optional to adopt
- Non-disruptive to current workflows
7. Funding
Milestone 1 (Foundation): 175,000 CC upon committee acceptance
Milestone 2 (Compliance Intelligence): 175,000 CC upon committee acceptance
Milestone 3 (Network Scale): 175,000 CC upon committee acceptance
Milestone 4 (Production Readiness): 175,000 CC upon final release and acceptance
8. Motivation
Identity verification remains one of the most resource-intensive processes in financial services.
Current approaches:
- Duplicate effort across institutions
- Create inconsistent outcomes
- Limit visibility across ecosystems
BlockID explores a model where:
- Verification processes are more connected
- Data usage is more efficient
- Outcomes are more consistent
9. Rationale (High-Level)
Why shared frameworks?
To reduce duplication and improve coordination across participants.
Why reusable verification?
To increase efficiency while maintaining appropriate controls.
Why privacy-aware models?
To align with regulatory expectations and user protection principles.
10. Go To Market Strategy
Phase 1, Proving the model by gaining institutional buy-in.
In this phase we will seek partners
Establishing a reciprocal sharing agreement between 2 or more financial institutions based in the UK
Running a POC Pilot to demonstrate data sharing.
Phase 2, Expanding participants on the network.
In this phase we will start to scale the network and the jurisdictions which it services.
We will onboard 2 or more additional jurisdictions that we are currently engaged with.
We will support Canton with its own growth and geographical scaling ambitions.
Phase 3, Supporting existing Canton participants.
In this phase we will position BlockID as the identity layer for institutional digital asset markets.
Delivering a value-added proposition to the existing Canton participants, through providing a native KYC/KYB token layer for all counterparties. Which enables Compliant onboarding into tokenised asset markets, Reusable identity across protocols and participants & Atomic compliance alongside settlement.
Phase 4, Expansion into adjacent segments
In this phase Block ID will be expanded into adjacent business segments such as insurance, telecoms, healthcare, etc... as well as into adjacent verticals such as Credit, Home Finance and many more.
Important Notice
This is a public, redacted version of the proposal, it intentionally excludes:
- Technical architecture
- Data models and schemas
- Processing logic and workflows
- AI methodologies
- Commercial mechanics
- Performance characteristics
- Proprietary innovations
This document is intended for conceptual understanding only and does not provide sufficient detail to replicate or infer the underlying system. For access to further details, please contact Block Infrastructure via the email address josh@...
