Authenteq, creator of the blockchain identification verification expertise Trollteq, has raised $5 million in funding and is touting its 60-second identification verification course of.
The funding for the Reykjavik, Iceland-based firm was led by Draper Associates and Capital300. The corporate stated it accomplished its funding spherical in two weeks.
Authenteq CEO Kari Thor Runarsson stated the corporate is speaking with extra traders a couple of second closing of the Collection A financing, which is anticipated to occur within the subsequent couple of weeks.
Picture Credit score: Authenteq
“The explanation we determined to do two closings is we have been launched to an investor (Capital300) with a startup mindset of getting issues achieved and felt it was an ideal problem to attempt to end all due diligence and paperwork in two weeks after the time period sheet was authorised,” Runarsson stated, in a press release. “It was type of a area take a look at for us to see in the event that they actually have been as agile and dynamic as they claimed to be throughout our discussions. We have been truthfully stunned how easily it went, regardless of a really thorough due diligence and authorized course of.”
Authenteq publicly launched its service in late 2018, and it signed up a dozen purchasers within the first months. A typical buyer must adjust to KYC (Know Your Buyer) and AML (Anti-Cash Laundering) rules, that means firms in the monetary trade, in addition to on-line marketplaces providers.
“Having forward-thinking traders similar to Tim Draper proceed his assist of Authenteq after backing the corporate within the seed spherical and a convertible notice exhibits his curiosity and dedication to the area,” stated Runarsson. “And having traders like Capital300 who present the entrepreneurial spirit of getting stuff achieved in document time actually provides us confidence that we’ve got picked the correct traders for our continued progress.”
Draper is thought for his investments in Skype, Tesla, SpaceX, Baidu, Coinbase, Robinhood, and Twitch.
“I imagine that Authenteq is the start of the answer to true and pure identification, which can eradicate most of the safety issues out there immediately. Their product is straightforward and stylish,” Draper stated, in a press release.
Authenteq’s AI-driven computerized identification verification course of makes use of a proprietary passive liveness detection to ensure whoever is signing up for the service is doing so in actual time. The corporate then points an eID for the consumer, situated on the consumer’s cell phone and personal blockchain. In lower than 60 seconds, a consumer is verified with government-grade facial recognition algorithms, and the photograph ID paperwork are authenticated.
The marketplace for cellular identification verification is presently estimated at $10 billion and is anticipated to double within the subsequent 4 to 5 years, in response to consulting agency McKinsey.
Authenteq differentiates itself from different gamers out there with its eID, which provides the consumer full management and possession over their on-line identification. Authenteq’s plan is to introduce varied disruptive providers for the largely untapped market within the identification area.
Authenteq has 22 workers working in its Berlin and Reykjavik workplaces, and the new funding shall be utilized in half to rent a spread of latest positions.
Authenteq’s identification administration service can assist curb the scourge of web trolls. Trolling has turn out to be endemic throughout platforms starting from Twitter and Fb to on-line information websites, and these haters have made many beforehand household pleasant and socially accountable web sites into havens for on-line abuse. Irrespective of what number of troll accounts are deleted by the supplier, they nonetheless return underneath a brand new identify or deal with and proceed their vile conduct, threats, and harassment.
With Trollteq, as soon as a consumer is banned, they’re gone for good and can’t re-register underneath a false identify or identification. It requires buy-in from platforms that permit some extent of anonymity or privateness, as Trollteq makes use of Authenteq’s identification administration system, which requires folks to confirm that they’re human.
It’s a must to use your smartphone to seize your picture, selfie-style. Then you definately take an image of your legitimate driver’s license or another type of sovereign identification. Authenteq verifies that the photographs are of you and that the ID card is authentic. Then it associates you with a login account that you’re creating, with out gifting away your identification.
Reykjavik, Iceland-based Authenteq will then confirm to a 3rd occasion — on this case, the platform you might be signing as much as be part of — that you’re a actual human. You might be solely allowed to make use of your identification to join one account. You may’t use the identical identification to join a brand new account if you’re banned.
Picture Credit score: Authenteq
Authenteq shops a hashstring on the blockchain that, if checked, merely verifies that you’re a human who opened an account. It won’t preserve your image or your identification data as soon as the verification course of has been accomplished. If it ever turns into essential to re-verify your identification, Authenteq will search for the hashstring on the blockchain, which is a safe and clear decentralized digital ledger. With passports, Authenteq can learn an encrypted chip for verification.
By not storing the info, Authenteq ensures that it gained’t pressure prospects to surrender their privateness. As an example, if legislation enforcement involves the web site and calls for to know the identification of an individual behind an account, neither the platform proprietor nor Authenteq will be capable to flip that data over as a result of they gained’t have it.
After all, even these safeguards gained’t fulfill some folks, significantly those that have little interest in turning over their digital data or image to any on-line entity. Runarsson acknowledges it will likely be troublesome for some firms to require customers to offer such verification. Nonetheless, governments and new legal guidelines might very nicely require web sites to confirm that their customers aren’t youngsters or have been verified ultimately.
Below this technique, all private consumer data is user-owned, user-controlled, and utterly inaccessible to anybody else — together with Authenteq. With an Authenteq ID, the way you confirm your identification or elements of your identification to any third occasion is as much as you. Trollteq can provision a digital biometric passport on any web site, and the ID is user-owned and managed, with all private data saved on the blockchain.
After he preliminary signup, it takes a consumer underneath three seconds to attach their ID to any extra on-line profile, account, or identification they’ve, all with out utilizing a password. Trollteq incorporates exceptionally strong fraud and privateness safety instruments, together with liveness detection — superior expertise that makes certain solely actual dwell human beings are signing up, versus static images. Importantly, since Trollteq doesn’t save any knowledge in regards to the consumer, there isn’t any risk of a database breach leaking private data.
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