What is Onchain Identity Verification?

Onchain identity verification is the process of linking a real-world, KYC-verified identity to a blockchain wallet address in a way that can be queried or validated by smart contracts and decentralised applications (dApps).

In traditional Web3 environments, wallet addresses are pseudonymous. There is no way to know who controls a wallet without off-chain data. This creates a compliance problem for any blockchain-based business that is required to know who its users are, such as regulated crypto exchanges, DeFi lending protocols, tokenised asset platforms, and DAO governance systems.

Onchain identity solves this by creating a verifiable link between a wallet address and a KYC-verified person. Once a user has been verified off-chain, a record of their verification status can be associated with their wallet address in a way that smart contracts can check at runtime. This allows a dApp to gate access, restrict certain functions, or comply with regulatory requirements without requiring users to re-verify for every interaction.

Verifilite's onchain identity module uses a question-based verification system tied to the user's wallet. It is compatible with EVM chains and Solana and does not require zero-knowledge proof (ZKP) infrastructure to implement.