What is Identity, ERC-725 & ERC-735? The next step of the Mass-adoption Era

What is Identity?

Identity can be defined as a set of an individual, group, or thing’s characteristics, "Claim" in short. Face, biography, background, and other such features might all be considered claims.

The government and legal authorities have issued associated documents to determine a person's identification; a typical example is a citizen's identity.

Citizen ID is a proof proving that you have gone to the offices of the appropriate authorities and presented the relevant documents to certify your identity. In return, the authority will provide you with a citizen ID that verifies you are the owner of that identity.

Users are well aware of the importance of citizen identity as many casual events in life necessitate it. The identification verification procedure is required for many of the cases, from getting a driver's license to buying a house to registering an online account.

Prominent Features of Claim

Claim is astonishingly flexible: Each feature can be used in different sets to be applied in a variety of situations, therefore identity comprises several claims. For example:

• To create a Facebook account, users need to provide gmail and phone number (personal photo, information, biography can be completely customized by the account holder and are optional).
• To take the driver's license test, users need citizen identity and identification documents, which are granted by the appropriate authorities and are difficult to change.

Claims can be used to create many other claims. For example: A driver's license test can be taken with Citizen ID. Users can register as a driver for a corporation using a driver's license.

Claims can be revoked. For example: The police confiscate a driver's license but the citizen's identity remains intact.

What is ERC-725 & ERC-735? 

ERC-725 is a proposed unique standard for publishing and managing an identity on the EVM-based blockchain by Fabian Vogelstelle, creator of ERC-20 and Web3.js. The ERC-725 standard describes proxy smart contracts that can be controlled by multiple keys as well as other smart contracts.

ERC-735 is an associated standard to add and remove claims to an ERC-725 identity smart contract.

One of the major issues that ERC-725 and ERC-735 seek to address is the fact that current users do not genuinely own their own data. Their identities are not properly secured when laying down on the Internet.

A number of situations involving the leakage of user information have been identified, ranging from basic information such as name, year of birth, etc. to more sensitive information such as bank account numbers, and even passwords…

Blockchain is the ideal technology for resolving this issue and assisting with identity management. However, as ERC-725 and ERC-735 are relatively new concepts, there aren't many developing projects in this field.

Identity Infrastructure

From ERC-20 token standard, which is utilized for the majority of tokens today, to NFT's ERC-721 token standard, all have played an important role in the growth of Crypto and have opened many opportunities for a variety of different areas, from DeFi to Play to Earn to Metaverse…

The next step of Crypto's space will be identity using the ERC-725 and ERC-735 token standards to build up, according to Balaji.

ERC-725 and ERC-735 standards

ERC-725 works in the same way as creating accounts over the network; instead of having to save our private key or seed phrase, we can utilize these accounts to interact on-chain. In which brings back a number of advantages:

Create an easy user experience

Users will no longer need to remember seed phrases when creating a wallet for on-chain interaction. Creating these accounts will enable users to have a much simpler experience than continuously having to backup seed phrases, similar to the wallets used by users to run testnets, airdrops, or interact with other protocols.

Furthermore, this will be the entry point for Crypto's mass-adoption; Crypto is increasingly gaining a wide range of applications, from DeFi to gaming with the Play-to-Earn model to social networks with Social Token.

Security

As the aim of ERC-725 is to provide users a more straightforward approach to crypto, users can easily change the key with a more secure one for backup purposes after they have been satisfied with what has been gained.

Creating value accounts

ERC-725 is used to create accounts, while ERC-735 is used to add claims. Which means:

• Multiple wallet addresses with different objectives and security levels can be added to a single account.
• Personal data can be added: accounts with photographs and bios can have on-chain interactions, unlike the existing wallet address.
• It's feasible to include claims that have been verified by third parties: Adding a LinkedIn bio is similar.
• Apply The Reputation Systems.
• And there's a lot more potential to be found.

NFT 2.0

The ERC-725 standard has two sub-standards:

• ERC-725X: Execute arbitrary smart contracts by use of other smart contracts.
• ERC-725Y: This standard holds a generic key/value store.

As claims can be added or removed, NFTs can attach a variety of values to themselves, such as brand, reputation systems, creator reputation, and so on. Additionally, other smart contracts can also use the NFT, ushering in an age of interoperable NFTs in the cryptosphere.

Identity x DeFi

The majority of DeFi's existing loans are over-collateralized; however, platforms such as Aave and Cream support subprime mortgages, but they all require KYC.

Having a verified claims account allows users to borrow without putting up any collateral, taking advantage of DeFi and providing a more seamless customer experience.

Polygon ID

Polygon ID is another identity infrastructure that Polygon has created. Polygon ID includes the following features:

• Create a decentralized identification for individuals using blockchain technology.
• To maximize privacy, zero-knowledge technology is being used.
• On-chain scalability and confidentially verifiability.
• In accordance with current standards and suited for use in ecosystem development.

Identity Dapp

Identity Dapps are applications that support users with claims to express their traits. If the preceding infrastructural measures assist users to get a "citizen identity”, Identification Dapps help them earn a "membership card" or a "social account".

The following are some examples of Identity Dapps and the services they provide:

• The Ethereum Name Service (ENS) is a domain name service that assists users in naming their wallet address. For instance, abc.ETH.
• In addition to ENS, they also provide a service supporting domain names in a variety of systems, such as Solana's Bonfida.
• With NFT approval as Zapper, Debank, Twitter, and so on.
• Sign in using a wallet address: Developers are currently working on integrating login with a wallet address. Imagine in the future, users will be able to "sign in using Metamask, Coin98 Wallet,..." instead of "sign in using Google."

Conclusion

This article has provided a comprehensive overview of what identity, ERC-725, and ERC-735 is, as well as some prominent use cases for this topic! If you find it useful, please share it with your friends!

Learn more: What is Ultra-sound Money? Why call ETH Ultra-sound Money