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

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