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How identity and verification drive trust in the new era.

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• 12 min read
How identity and verification drive trust in the new era.

As Web3 matures into a global infrastructure for finance, communication, and identity, the tension between privacy, compliance, and usability becomes increasingly apparent. The Concordium X Space brought together three pioneers working to shape the future through fundamentally different, yet complementary, approaches to digital identity and verification.

Simon Molitor, CEO and Founder of Solana ID, crafts high-speed, scalable identity solutions tailored to dApps within the Solana ecosystem. His focus is pragmatic, addressing fraud, bot activity, and marketing without burdening protocols with premature compliance obligations.

Ravi Agrawal, Director of Growth at Privado ID, introduces a visionary take on identity that extends beyond humans to AI agents. With the launch of the Billions Network, Ravi advocates for scalable, non-biometric, privacy-first proof of personhood; built on decentralized rails via existing infrastructure.

Holger Fischer, Commercial Director at Concordium, presents a regulation-first model given Concordium's identity-layer embedded directly at the protocol level. Leveraging Zero-Knowledge Proofs (ZKPs) and compliance-ready features, Concordium aims to make blockchain secure, private, and institutionally trusted from the ground up.

Jointly, these leaders explore how decentralized identity can reconcile the seemingly opposing forces of privacy, compliance, and scalability, and how this is poised to unlock the next era of adoption in Web3, AI, and digital finance.

1A Simon Molitor on Solana ID: Origins, Strategy & Focus

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1A Introduction Simon Molitor Solana ID
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  • Evolution of Solana ID
    • Originally launched as DSID (Digital Social ID) in January of last year.
    • Underwent iterations, deep strategic reflections, and a rebranding to become Solana ID.
    • Now the fastest-growing identity layer on Solana with long-term expansion plans beyond the ecosystem.
  • Current Strategic Focus
    • Primary goal: Dominate identity solutions within the Solana ecosystem before expanding.
    • Go-to-market approach:
      • Identifying target audiences & buyer personas.
      • Less emphasis on compliance & KYC (though these capabilities remain).
      • Strong focus on targeted marketing for dApps using sovereign identity data.
  • Unique Approach to Identity Solutions
    • Moving away from compliance-heavy frameworks to instead focus on identity-driven marketing.
    • Interested in discussing compliance, RWA (Real World Assets), and DeFi identity solutions.
  • Background & Mission
    • Formerly worked in traditional finance and venture capital.
    • Pivoted fully into crypto and blockchain.
    • Mission: Scale Solana ID to new heights while innovating in identity solutions for Web3.
  • Comments

1B Ravi Agrawal on Privado ID: Background, Vision & Billions Network

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1B Rawi Agrawal Privado Introduction
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  • Professional Background
    • Current Role: Director of Growth at Privado ID.
    • Previous Experience:
      • Polygon ID & Polygon Labs – Over three years of experience.
      • Business & Management Consulting background.
  • Privado ID’s Mission
    • Focused on making identity data verification seamless across:
      • Any service
      • Any device
      • Any protocol
  • Announcement: Billions Network
    • New initiative launched last Friday.
    • Goal: Create a global human & AI network.
    • Key Features:
      • Mobile-first verification to scale Web3 and the “Internet of Value”.
      • No reliance on biometric hardware (e.g., iris scan, palm scan).
      • Leverages existing digital infrastructure (e.g., national IDs, digital identities).
      • Focused on decentralized & private proof of personhood for both humans & AI.
  • Excitement for the Panel Discussion
    • Keen to contribute to discussions on identity verification, compliance, and decentralized identity solutions.
  • Comments

1C Holger Fischer on Concordium: Compliance, Security & Identity in Web3

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1C Holger Fischer Concordium Introduction
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  • Concordium’s Role in Web3 Identity
    • Only Layer 1 blockchain that integrates compliance-ready identity verification at the protocol level.
    • Key challenges Concordium aims to solve:
      • Verifying identities while preserving privacy.
      • Enabling regulatory compliance without centralization.
      • Making blockchain safe for payments, stablecoins, and financial services.
  • How Concordium Tackles Identity & Compliance
    • Built-in ID Layer
    • Individuals and businesses can obtain on-chain identities at the protocol level.
    • Reduces friction for businesses by streamlining compliance.
    • Zero-Knowledge Proofs (ZKPs)
    • Allows privacy-preserving compliance (e.g., proving age or jurisdiction without revealing personal data).
    • Eliminating Smart Contract Risk
    • Unlike many blockchains, Concordium secures identity and payment functions at the protocol level.
    • Prevents exploits related to vulnerable smart contracts.
  • Business-Friendly Features
    • Predictable Transaction Costs
    • Uses euro-pegged fees to eliminate gas fee volatility, making blockchain payments more practical.
    • Programmable Money Features (Roadmap Update)
    • Native locks, scheduled transfers, secure deposits, milestone-based payments.
    • Presented in a recent Concordium town hall meeting.
  • The Urgency of Trust & Compliance in Web3
    • Web3 adoption hinges on trust & compliance in financial services.
    • Recent major security breaches:
      • Bybit hack and other smart contract exploits (millions to billions lost).
      • Reinforces the need for protocol-level security & compliance measures.
  • The Identity Challenge in Web3
    • Blockchain was built for trusted transactions, but not all transactions should be anonymous.
    • Traditional identity models (banks, government databases, social logins):
    • Vulnerable to breaches & censorship.
    • Web3 anonymity issues:
      • Creates AML/KYC compliance barriers.
      • Blocks institutional adoption due to regulatory concerns.
  • Comments

2 Navigating Identity, Anonymity & Compliance: Solana ID’s Approach

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2 How does Solana ID balance centralized identity models and Web3 2
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  • Holger asks Simon Molitor:
    • “How does Solana ID balance centralized identity models and Web3 anonymity?”
  • Simon’s Response:
  • Business-Driven Focus
    • Compliance & KYC not a priority—no demand from dApps.
    • Focus on profitability—delivering what is needed now.
    • Compliance needs deep pockets—not feasible for a niche, smaller protocol.
  • Current Focus: MarketingFi & Fraud Prevention
    • Bot detection & unique user verification—prevent multi-wallet farming.
    • Fair airdrop distribution—stop Sybil attacks.
    • Identity for targeted marketing—without heavy compliance burdens.
    • Key Insight: dApps need fraud prevention, not KYC.
  • Balancing Privacy & Compliance
    • Crypto promised anonymity, but at what cost?
    • Need to walk the middle line between privacy and usability.
  • Holger’s Closing Comment:
    • Regulatory hurdles block institutional adoption.
    • Bearer asset risk: Lose private keys, lose everything—no recovery.
    • Smart contract vulnerabilities: Many Web3 ID systems rely on exploitable contracts.
    • Concordium’s focus: Building compliance solutions now, while Solana ID can address them later.
  • Comments

3 Decentralized Identity & Privacy: Privado ID’s Approach

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3 How does Privado IDs non biometric decentralized approach to
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  • Holger’s Question:
    • “How does Privado ID’s non-biometric, decentralized approach to proof of personhood fit into Web3 identity and verification, ensuring trust and Web2-to-Web3 transition?”
  • Ravi’s Response:
  • The Case for Decentralized Identity
    • Avoiding centralization risks:
      • Example: 2021 Facebook outage left billions locked out of services.
      • Decentralized identity prevents such single points of failure.
    • Growing demand for privacy-preserving identity solutions:
      • Not all dApps prioritize privacy, but demand is rising for selective disclosure.
    • Use cases for privacy-based proofs:
      • Proof of personhood without revealing credentials.
      • Asset ownership verification without exposing wallet addresses.
      • Bot-resistant airdrop solutions using ZK technology.
      • Future applications: Age assurance, gender verification, sanction screening.
    • Billion Network’s role:
      • Built on existing digital infrastructure to offer scalable proof of personhood.
      • Bridges privacy & compliance using ZK proofs.

  • Holger’s Closing Comment:
    • Key challenge: Verifying identity without storing it.
    • Concordium’s approach: Zero-Knowledge Proofs (ZKPs) allow credential verification without revealing private data.
    • Striking the right balance between privacy & accountability is crucial.
  • Comments

4 Zero-Knowledge Proofs (ZKPs) & Regulatory Compliance

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4 Zero Knowledge Proofs ZKPs Regulatory Compliance 2
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  • Simon’s Question:
    • "Institutions hesitate to adopt ZKPs due to limitations in data accuracy and compliance. Regulators require identity data on request, but ZKPs don’t store or hash detailed data. How feasible is a compliance-ready ZKP system? Does it need alternative technology?”
  • Holger’s Response: Making ZKPs Practical & Compliant
  • Institutional Concerns About ZKPs
    • Usability & complexity—institutions struggle with implementation.
    • Regulatory alignment—concerns over lack of accessible identity data.
    • Need for lightweight, efficient proof generation while maintaining security.
  • Concordium’s Approach: Abstracting ZKPs for Compliance
    • Simplified integration through SDKs, libraries, and APIs.
    • Optimized proof generation to keep it lightweight & efficient.
    • Ensuring compliance while maintaining privacy.
  • How It Works on Concordium
    • Identity verification happens via certified ID providers (e.g., Digital Trust Solutions, Notabene).
    • Personal Identifiable Information (PII) is stored in the user’s wallet, not on-chain.
    • Selective disclosure via ZKPs:
    • Users can prove age, jurisdiction, accreditation, etc. without exposing full identity.
      • Example: Accredited investor verification for a money market fund.
    • Regulatory advantage:
      • GDPR-compliant—platforms verify identity without storing sensitive data.
      • Ensures compliance while protecting user privacy.
  • Comments

5 Privado ID’s Approach to Compliance & ZKPs

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5 Privado IDs Approach to Compliance ZKPs 2
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  • Two Key Compliance Approaches
  • Balancing Traceability & Data Liability
    • Regulators require traceability to confirm identity checks occurred.
    • Service providers want minimal data liability—storing less data reduces risk.
    • The challenge: How much data should be disclosed vs. retained for audits?
  • Two Approaches in the Ecosystem
    • Selective Disclosure (Minimizing Data Exposure)
    • Example: Indian project verifying restricted area check-ins.
    • Requires only name & address instead of full identity.
    • Reduces liability while ensuring necessary compliance.
  • ZKP with Traceability (Sanction Screening)
    • Example: Web3 project (QAC) verifying users before token launches.
    • Uses ZKPs to check sanction lists before allocating tokens.
    • Records are retained for 7 years for auditability without excessive storage.
  • Comments

6 ZKPs & Compliance in Tokenized Money Market Funds (MMFs)

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6 ZKPs Compliance in Tokenized Money Market Funds MMFs
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  • Holger Expands on Simon’s Question
    • Tokenized MMFs bring on-chain liquidity, programmability, and global access but require strict compliance.
    • Regulatory hurdle: Some funds (e.g., in the U.S., SEC-regulated) restrict access to accredited investors.
  • How ZKPs Enable Compliance Without Data Exposure
    • Accredited Investor Verification via ZKPs:
      • Some funds require $1M+ net worth or $200K+ annual income.
      • With ZKPs, investors can prove they meet these criteria without revealing exact numbers.
      • Binary verification (Yes/No) prevents exposure of financial details to third parties or competitors.
  • Balancing Transparency & Privacy
    • Institutions verify compliance without accessing sensitive financial data.
    • Protects fund composition details from competitors.
    • Regulators can still audit compliance privately.
  • Comments

7 Balancing Compliance & Privacy in Identity for Payments & Financial Services

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7 Balancing Compliance Privacy in Identity for Payments Financial
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  • Simon Summarizes: The Best Approach So Far
  • Identity at the Protocol Layer
    • Uses Self-Sovereign Identity (SSI) & Verifiable Credentials (VCs).
    • Users own their data but maintain auditability for compliance.
  • Combining Identity with ZKPs
    • Privacy-preserving verification without exposing full data.
    • Maximizes compliance, privacy, and data ownership.
    • Not the “holy grail” yet, but the best solution found so far.
  • Holger’s Expands again: Identity as the Foundation for Payments
    • Real-world payments require certainty—who is transacting, where funds are going.
    • TradFi relies on centralized entities for compliance, DeFi lacks this oversight.
    • Stablecoins & DeFi need compliance without centralization.
      • ZKPs can enable legally compliant transactions without exposing identity.
    • Current challenge: How to ensure legal compliance without reverting to centralized financial models.
    • Blockchain-native identity solutions are key, but few platforms are solving this today.
  • Comments

8 Trust as a Catalyst for Adoption: Privado ID’s Approach

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8 Trust as a Catalyst for Adoption Privado IDs Approach
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  • Holger’s Question:
    • “How does Privado ID, especially through Billions, enhance trust and compliance for Web3 projects?”
  • Ravi’s Response:
  • Trust as a Key Differentiator
  • Consumer demand for trust
    • Surveys show 60-70% of users choose services that prioritize data privacy & security.
    • Trust is a competitive advantage for service providers, even without regulatory pressure.
  • Expanding Trust Beyond Web3 – AI & Digital Agents
    • AI agents will also require trust & reputation layers.
    • Example: Just like app stores rank apps based on downloads & reviews, AI agents will need credentials proving:
      • Who developed them.
      • What training data they used.
      • Their fairness & reliability.
    • Privado ID is building this trust infrastructure for AI agents.
  • Future Scale of Trust in Digital Identity
    • Today, digital trust focuses on 8 billion people.
    • In the near future, we may need trust verification for 100 billion+ AI agents.
    • Demand for decentralized identity will grow exponentially.
  • Comments

9 Smart Contract Risk & Token Security in Solana vs. Concordium

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9 Smart Contract Risk Token Security in Solana vs Concordium 2
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  • Holger’s Question:
    • “Smart contract vulnerabilities hinder adoption. At Concordium, we address this with Protocol-Level Tokens (PLTs) to prevent duplication, exploits, and scam addresses. Given Solana’s reliance on smart contracts, is this a growing concern for Solana ID?”
  • Simon’s Responds: Solana ID’s Role in a Smart Contract-Dependent Ecosystem
  • Key Difference: Identity Layer vs. Protocol-Level Security
    • Concordium controls security at the protocol level, while Solana ID is built on top of Solana.
    • Solana ID relies on Solana’s SPL token standard for security.
  • Smart Contract Risk in Solana
    • Millions of tokens launched daily → challenge in verifying issuers.
    • Not necessarily protocol vulnerabilities, but trust issues around token issuers.
    • Solana’s core standard (SPL) is secure, but issuer credibility varies.
  • Solutions in the Solana Ecosystem
    • Infrastructure development focuses on issuer verification, not token security.
    • DEXs & DeFi apps (like Jupiter) lead efforts with:
      • Strict token verification lists (e.g., green checkmarks for verified tokens).
      • Volume & on-chain data checks to identify legitimate assets.
  • Solana ID’s role:
    • Ensure token issuers & traders are verified entities.
    • Support DeFi apps & exchanges in improving issuer trust.

10. Governance & Industry Adaptation in Decentralized Ecosystems

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10 Governance Industry Adaptation in Decentralized Ecosystems
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  • Builders & founders want a voice in governance & decision-making.
    • Important to secure the survival of ecosystems and adapt to threats like the Bybit hack.
  • Solana ID’s position:
    • Largest identity protocol in Solana, well-positioned to influence the narrative.
    • Question: Is Solana ID integrating security/compliance into its roadmap?
    • ID layer as a scalable Layer 2 solution—how can it be leveraged?

11. Solana ID’s Collaboration with the Solana Foundation on Identity Standards

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11 Solana IDs Collaboration with the Solana Foundation on Identity
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  • Solana ID collaborates with the Solana Foundation on identity standards.
    • Works within a small identity consortium of multiple ID-focused projects.
    • Solana Foundation’s role:
      • Listening to builders.
      • Consolidating protocol needs.
      • Developing standards based on ecosystem demands.
    • New identity technologies are in development but not yet public.
    • Solana Foundation may announce updates later this month.

12. Institutional Adoption & Compliance in Web3 Payments & Tokenized Finance

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12 Institutional Adoption Compliance in Web3 Payments Tokenized
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    • Stablecoins & tokenized assets gaining regulatory momentum.
    • Big names entering Web3:
      • Visa, Mastercard, PayPal (via Paxos).
      • Central Bank Digital Currencies (CBDCs).
    • Cross-border remittances & treasury payments moving on-chain.
    • Core challenge: Compliance must not block adoption.
    • Stablecoins need identity verification, AML/KYC, and security measures.
    • Different identity providers (L1s, L2s, DID solutions) must integrate compliance into their roadmaps.

13. Stablecoins, Institutional Capital & DeFi Adoption

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13 Stablecoins Institutional Capital DeFi Adoption
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    • Stablecoins drive Web3 adoption, bringing in new users.
    • Institutional capital is waiting—but compliance issues must be resolved.
    • Three key institutional use cases in Web3:
      • Stablecoins & CBDCs (e.g., bank-issued stablecoins).
      • Asset tokenization (TradFi leveraging blockchain for efficiency).
      • DeFi adoption (institutional funds entering permissioned DeFi).
    • Compliance integration is key for institutional-scale adoption.

14. Simon’s Closing Remarks: The Revival of Identity Tech

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14 Simons Closing Remarks The Revival of Identity Tech
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    • Identity tech lost momentum after 2021, but is now resurging.
    • Both institutions & dApps are driving renewed demand.
    • Identity is data-driven—Web3 needs privacy-preserving, user-owned identity solutions.
    • Solana ID’s goal: Improve UX & security while keeping identity decentralized.

15. Ravi’s Closing Remarks: Policy & AI’s Role in Identity

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15 Ravis Closing Remarks Policy AIs Role in Identity
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    • Governments (EU, UK) pushing digital identity into mainstream adoption.
    • AI will reshape identity & data economies—verified data will become more valuable.
    • AI agents will also need decentralized identity & verification layers.

16. Holger’s Final Words & Concordium’s Mission

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16 Holgers Final Words Concordiums Mission
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    • Concordium’s vision: Finance is becoming digital & trust-driven.
    • Goal: Identity must be both private & compliant for blockchain finance.
    • Programmable money & smart contract risk reduction are key priorities.
    • DID adoption will bridge Web2 users into Web3, unlocking mass adoption.

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