Advantages of having ID verification at a network level

This page explains how Haven1 unique network design provides a safe and best in class user experience to users engaging on chain.

Grasping the difference between user verification conducted at the application level versus the comprehensive, network-level approach adopted by Haven1 is key to appreciating the robust value offered by hPassport.

The table below contrasts these approaches, highlighting the innovative approach adopted by Haven1.

Feature	Application/Protocol Level	Haven1 Network Level
Integration Complexity	Requires bespoke code More challenging to change or update.	Simple universal SDK. More flexibility in updating or changing the KYC process.
Universality of Standards	Multiple standards can co-exist, leading to fragmentation. Different applications will have different levels of KYC/KYB scrutiny.	One standard for the entire network. Ensures uniformity.
User Experience	Tedious: Users will need to undergo KYC processes for multiple applications separately.	Smooth: Once verified, users can interact with any application on the chain without re-verification.
Protection from Exploits	Protection varies by application. Inconsistencies in defense mechanisms across apps. Fragmentation in design enhances surface attack area	Centralized control offers a unified defense mechanism, but a flaw affects the entire network. Rapid response possible for widespread issues.
Regulatory Compliance	Different applications will have varying levels of compliance, leading to regulatory risks for users.	Easier to enforce compliance across the entire network. Attractive to institutional players.
Adoption Barriers	Allows for rapid growth as applications can choose to have laxer or stricter KYC norms.	Establishes a foundational trust layer by requiring upfront verification, which streamlines future interactions and enhances network security for all users.
Operational Costs	Costs are borne by individual applications	Cost borne by network
Audit and Oversight	Requires overseeing numerous applications individually, which could be resource-intensive.	Centralized oversight is more straightforward.
Privacy Concerns	Decentralized KYC approaches may offer varied privacy benefits but also introduce potential risks for data breaches across multiple points.	Centralizes user data within a secure, unified framework, using advanced encryption to protect privacy and minimize exposure.
Soulbond Tokens Security	Tailored security per application Risks will be localized to specific applications, but inconsistencies in security measures across different applications can exist. No recourse mechanic in the event of failure application failure	Standardized security ensures consistent protection. Consistent level of protection against theft, duplication, or unauthorized transfers. Network level recourse mechanic provides a failover solution