Case Study - Simplifying KYC demo for NFT.NYC

Overview

Cogni, a forward-thinking neobank boasting a crypto wallet, envisioned a world where Know Your Customer (KYC) didn't involve submitting the same information repeatedly for every exchange. Their vision was clear: a simple, streamlined KYC product enabling fast verification with secure exchange of identity data.

The primary objective was to allow their users to undergo the KYC process once with Cogni, and provide the verifiable credentials to any partnering exchange effortlessly.

As a last minute addition to their presentation, we had a tight timeline of 6 weeks to design, build and deploy the demo.

Technology

The underlying technology for Cogni's KYC product demo was built using Lit Protocol. Lit Protocol is an advanced multi-party encryption protocol designed to provide robust security and privacy for data transactions

Lit Protocol employs multi-party encryption to ensure that data is encrypted in such a way that it can only be decrypted if certain conditions are met.

A decentralized network of participants is at the core of Lit Protocol. These participants collectively agree on whether the decryption conditions have been satisfied without having any knowledge of the actual data being encrypted or decrypted. This ensures that user data remains private and secure at all times.

The protocol guarantees secure, end-to-end encrypted data transmission. This means that from the moment the user submits their KYC information to Cogni, until it is shared with a partnering exchange, the data remains encrypted and secure, inaccessible to unauthorized parties.

Access to the encrypted data is controlled through smart contracts. These smart contracts define the specific conditions under which data can be decrypted – in this case, a valid signature from the user's Cogni crypto wallet authorizing the sharing of their data.

To prevent reuse or sharing of NFTs, we implemented the "soulbound" standard, effectively blocking any user-initiated transfers of the NFT.

How it worked

At the event, Cogni staff members utilized a bespoke mobile app we developed to issue identity NFTs to attendees.

Cogni's app for the event allowed staff members to issue identity NFTs directly to attendees. This app was tailored specifically for the event – in a real-world scenario this process would be automated and integrated into the Cogni sign-up flow.

Attendees’ wallet addresses were scanned using the mobile app. After scanning the wallet address, staff members could choose from a selection of example identities inspired by popular culture references. This added an element of fun and engagement, making the demo experience memorable for the attendees.

Once an identity was selected, the attendee received their unique identity NFT directly into their wallet. This NFT served as a digital credential, showcasing how secure and straightforward the KYC process could be with Cogni.

Attendees were then directed to a demo marketplace that had integrated the Cogni Passport sign-up flow. Here, they experienced the seamless transition from wallet authorization to KYC verification.

By guiding attendees through this streamlined and secure process, we showcased the practical application and potential of Cogni’s innovative KYC solution, emphasizing its ease of use and robust security features.

Our results

The response at the event was overwhelmingly positive, with attendees showing huge interest in Cogni's innovative KYC solution. The concept of undergoing the KYC process just once and using verifiable credentials across multiple exchanges resonated strongly with participants.

Despite a tight timeline of only six weeks, we were able to design, build, and deploy the demo with remarkable efficiency. The project showcased our ability to deliver high-quality, polished solutions under pressure.

We look forward to working with Cogni in the future on the development of the full platform, continuing to innovate and push the boundaries of what's possible.

What we did