Identity Verification Infrastructure

Identity verification infrastructure refers to the technical systems and third-party services that platforms use to confirm user identity. This includes document scanning, facial recognition, and database cross-referencing against watchlists.

As the crypto industry matures, these systems are becoming more sophisticated and integrated directly into the onboarding flow of decentralized applications. Building this infrastructure is expensive and requires constant updates to stay ahead of identity theft and fraud.

For protocols, the challenge is to implement these checks without creating excessive friction or compromising the user experience, which is critical for retention in a competitive market.