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KYC on the blockchain: Civic and CVC Explained

KYC on the blockchain: Civic and CVC Explained

Explainers Networks

14 Jun 2021

Much more than a token, Civic (CVC) is a project that solves a very familiar problem. Namely, the issue around verifying our identity online to organizations, service providers and agencies, over and over again.

Indeed, the amount of time we have to go through tedious procedures, taking pictures, looking for documents to prove our address and so on. Even on AAX, where we’ve made KYC as easy as possible, this seems like a perfect problem for blockchain to solve.

In this article, we take a closer look at Civic and CVC and how it aims to solve the problem of identity verification.

What is Civic?

Blockchain technology has made it possible to create unique digital assets. This can come in the form of an NFT, which proves the ownership of a single object. These objects are non-fungible, meaning they are truly unique and cannot simply be exchanged for something of a similar nature. For example, a one Picasso cannot simply be traded for another Picasso.

Built on the Ethereum blockchain, Civic applies this logic to our identity, which based on our name, social security number, DNA, fingerprints, thoughts and background should be fairly unique. The project aims to make it easier for everyone to prove their identity and leverage their data.

Just think how many times you’ve had to go through a KYC verification process. Whenever you apply for a new job, open a bank account, sign up on an exchange, you have to submit proof of identity and wait for it to be verified. Depending on the service, this could take days, as organizations have to spend time authenticating this information.

Civic offers an ingenious yet simple solution to this problem, one where a single input of your personal identity information allows any organization or service to cross-check it on the blockchain without asking you to provide the same data twice–personal identity verification that is transferable from one service to another.

On the network, there are three entities: users, validators and service providers.

  • A user is simply someone who wants to submit their identity to the blockchain. This can be done with the Secure Identity App.
  • Validators are responsible for verifying identities for the network, both on the blockchain and for service providers. With the user’s consent, they can sell information to service providers looking to verify the user’s identity.
  • Service providers can anything from a bank to an exchange where the user is wanting to onboard and where identity verification is required.

It’s important to note that all personal information is encrypted with private keys issued by a third party wallet and as such Civic cannot simply access your personal data without your consent. What’s more, your personal information is not actually stored on the blockchain. Rather, ‘attestations’ are stored on-chain, these are references to your data showing they exist. It means sensitive information is always under your own control.

Tip: Health Key is Civic’s newest product. This app enables employers to securely verify the health status of employees, to ensure they are healthy enough to return to the workplace after an infection with COVID19 — such as if they test positive for antibodies or have been vaccinated. This is achieved without compromising the privacy of the employee.

What is the CVC token?

As per the Civic token sale website, a total of 1 billion CVC were minted, of which 33% were sold in the token sale; 33% is retained by Civic; 33% is allocated for incentives and rewards; and the remaining 1% was used to cover token sale costs.

CVCs can be earned by validators when service providers use their attestations to verify a user’s identity. Users can also receive CVC for providing their data through the ecosystem. CVCs can be used on the platform by all participants in a different ways related to identity-related products and functions.

Currently trading at $0.25 USD, CVC’s all-time high stands at $1.66 USD and has yield an ROI of 70% since its launch in 2017. While the price is not too impressive and CVC was unable to surpass its previous highs during this current bull market. However, with Bitcoin in the global limelight, digitalization in full force, and with more attention to the benefits of blockchain, there is good reason to believe that both the project and the token will continue to evolve and grow over the coming years.

You can buy CVC on AAX Spot. You can store the token on the exchange or store it on any Ethereum wallet or cold wallet that stores ERC20.

AAX is the world’s first digital asset exchange to be powered by LSEG Technology. Offering OTC, spot, and futures, it provides a highly secure, deeply liquid and ultra-low latency trading environment; and a meeting point between crypto and global finance.

Open an account with AAX, or download the app, and experience the next generation crypto exchange.

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