Equifax, a credit reporting company, will now help build a data privacy solution for Web3 projects. On the 27th of October, Equifax, famous for one of the most significant data breaches in history, announced its new agreement with privacy-focused cloud company Oasis Labs.
After entering into this new agreement with Oasis Labs, Equifax will develop an identity management and KYC product, known as a know-your-customer product, for Web3 startups. This development will help Web3 startups, such as DeFi protocols and NFT projects, to secure their privacy. The company aims to help Web3 startups with privacy by building a data privacy solution.
Web3 is the upgrade of this simple internet, which we currently use, and many call it the next phase of the internet. The proponents of Web3 believe that it will be more decentralized, on which different blockchain networks will build, and it will be used to make use of cryptocurrency.
Blockchain decentralization does not mean Web3 projects do not need to follow through with identity verification and KYC procedures. About Web3 privacy, Equifax and Oasis said that a KYC solution with solid privacy security does not currently exist in the Web3 area. Because of this Web3 privacy concern, both companies signed an agreement.
Equifax and Oasis will work together to build a solution by issuing anonymous KYC-ed credentials to Web3 users’ wallets, which is expected to reduce privacy concerns.
In a press release, Dawn Song, the founder & professor of Oasis Labs, said they are working to build a better, more efficient decentralized identity and on-chain KYC solution. But they are also working to help accelerate the adoption of Web3 and bring more trust to the industry.
However, in 2017, Equifax suffered a massive data breach, which made headlines. More than 143 million US customers’ identifying details were revealed in this data breach. At that time, the company was ordered to pay a historic $700 million fine to settle enforcement with every state of the US.
