Decentralized Identity with Humanity Protocol Founder, Terence Kwok

Decentralized identity is the missing piece in Web 3, and Humanity Protocol is here to prove you're a unique human being, paving the way for a secure, open identity system.

All right, here we are with Teren Qua, founder of Humanity Protocol. Teren, it's so great to have you on The Defiant. Welcome!

Thanks for having me, Camila. So, Humanity Protocol is looking to solve one of the big missing pieces of Web 3 and crypto, which is decentralized identity. Teren, can you provide just a brief overview of what Humanity Protocol does? After that, we can get into all the details.

Sure! Humanity Protocol is a recent project that we launched and announced back in February-March. What we're doing is building a ZKM layer 2, specifically designed for open identity. What we mean by that is that identity is one of the things that a lot of people have talked about as a key blockchain use case since 2015-2016, but nobody's really been able to solve it. With Humanity Protocol, we are creating a chain specifically designed with features for identity, starting with what we call proof of humanity. This involves checking and proving that you are a unique human being and using that as a springboard to create an open identity graph. This graph can potentially include everything from your nationality, your age, your educational records, to your medical records—all encrypted and put onto the blockchain. We leverage zero-knowledge proofs so that any application can potentially gain access to this information, but always with your permission.

Awesome! Now, before we dive deeper into that, I'd love to hear more about yourself. What’s your background, and what led you to founding Humanity Protocol?

I've always been a tech entrepreneur. I was born in the US, grew up in Asia, and then I did my university studies in the US. I quickly dropped out to start my first company, which I grew to become one of the first unicorns out of Hong Kong, with over a thousand employees and over 100 million in revenues. Unfortunately, the company did not succeed because it was predominantly in the travel and hospitality sector, and COVID really affected it a lot.

Then, back in 2017-2018, I started becoming interested in the Web 3 industry and crypto, making some investments myself. After my previous company, I decided to move into the blockchain space. One of the key reasons I found identity very interesting is that even back in my previous company, we were working with a lot of hotels. We noticed that one of the key things people have to do when they travel is obviously carry a passport. When you go to a hotel, you have to check in, wait in line, and do a lot of these cumbersome things. When you think about the rest of the offline applications for identity, we believe there needs to be a more elegant solution.

Many other projects and teams have tried to take on decentralized identity or open identity, and so far, none of the solutions have really taken off. What do you think is different about Humanity Protocol that positions it better for success?

I think there are a couple of things. First, we need to focus on use cases. Identity is a very big topic, and too many people are tackling it from the perspective of how to bring all sorts of different pieces of information and attributes onto the blockchain. But one of the first things is to ask: what is the use for doing it? Why would someone want to put their information onto the blockchain, or why would they even want to create a decentralized identifier (DID)?

For us, one of the key things is not so much your entire identity but starting with one of the most important pieces, which is, as I said, just proving that you are a human being. I think this is especially important with the kickoff of all the new technologies in the AI sector, as it is becoming more and more crucial.

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In a world flooded with AI and deepfakes, proving you're human is more crucial than ever. We're starting with biometrics, using unique palm prints and veins to establish true identity.

In exploring the integration of pieces of information and attributes onto the blockchain, a fundamental question arises: what is the use for doing it? Why would someone want to put their information onto the blockchain, or even create a decentralized identifier (DID)? For us, one of the key aspects is not necessarily the entirety of one's identity, but rather starting with a crucial component: proving that you're a human being.

This need has become increasingly important, especially with the rise of new technologies in the AI sector. With the proliferation of deep fakes and AI-generated content, it has become challenging to ascertain who you are truly dealing with. Scammers can easily make phone calls, and platforms like ChatGPT and social media are rife with bots and accounts utilizing various AI tools to create content. Therefore, establishing whether someone is genuinely human is paramount.

We believe there is a genuine use case for this in both the Web 3 and Web 2 worlds. In the Web 3 realm, applications such as gaming and airdrops benefit from this verification, while in the Web 2 space, issues like click fraud and digital advertising also highlight the necessity for human verification. Our design focuses on a use case from day one, using this as a starting point to build out additional features that users may need.

When considering any product, particularly a digital identity solution, we often encounter a chicken-and-egg problem: how can you create applications if you don't have users, and conversely, how do you attract users without applications? In our case, we believe we have a compelling application that people genuinely need. Through various partnerships that we plan to announce in the coming months, we are confident in our ability to onboard a diverse range of users.

Delving deeper into our core focus of proving that you're a human, we recognize the challenges posed by advancements in AI. Currently, many projects attempt to achieve this through liveness tests and facial videos; however, these can easily be faked. Other initiatives connect social media accounts, but creating multiple accounts is a simple process requiring just an email and a phone number.

To address these challenges, we propose leveraging biometrics. It is inherently difficult to fake unique biological attributes. For instance, a person's fingerprint, palm print, palm veins, and iris are all unique identifiers. Our approach begins with the scan of your palm, utilizing both your palm print and palm vein to establish that you are a unique human being. This method bears some resemblance to the Worldcoin approach, which uses the iris for verification.

We opted for the palm due to its uniqueness and accuracy, which is comparable to that of the iris. Additionally, the technology is already proven, with companies like Amazon using it for payments and access control in the U.S., and Tencent employing it for payments in China. We are confident in the robustness of this biometric solution, which we believe will effectively address the pressing need for human verification in today's digital landscape.

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Embrace the future of identity verification with palm biometrics—less intrusive, highly unique, and ready to redefine how we prove our humanity.

The approach we are taking is somewhat similar to the Worldcoin approach, particularly in the use of biometric data. While Worldcoin is using the iris, we have decided to utilize palm vein recognition. This choice is based on the fact that palm vein patterns are unique for every single person in the world. In terms of accuracy, palm vein recognition is at the same order of magnitude as iris scans.

Moreover, this technology is already proven, with various companies employing it for different applications. For instance, Amazon is using it for payments and access control in the U.S., while Tencent is using it for payments in China. There is a general confidence in its robustness. One key advantage of palm vein recognition over iris scanning is that it is way less intrusive. Scanning a palm is much more accessible and less intimidating than scanning an eyeball, which can be a bit scary for many people. This accessibility opens up various use cases, such as decentralized payments, which would be impractical if users had to scan their eyes to make a simple purchase, like buying a soft drink.

To establish proof of humanity, we will implement both a hardware and a software component. The software component will allow users to scan their palm using their smartphone camera. However, it is important to note that this method is not completely foolproof, as it could potentially be spoofed if individuals are able to perform the scan on their own devices. Therefore, we will also have a hardware component that users must physically use to enroll, creating a super light proof of humanity and a more robust proof of humanity.

The software version will be available for certain use cases, but it will be limited in others where only the hardware will suffice. The decision on which method to use will ultimately depend on the specific applications and their requirements. For example, a game that simply needs to verify that a user is a human being rather than a bot might utilize a software-based solution. In contrast, an airdrop, which involves financial incentives, might necessitate hardware verification.

As we consider various applications, we envision a range of scenarios. For instance, an enterprise platform wanting to verify citizenship or wealth may require different types of information. Similarly, a hiring manager might seek proof of a candidate's educational background. Our goal is to leverage verifiable credentials in multiple ways, allowing applications to choose the verification methods that best suit their needs.

To incorporate these additional layers of information, we are developing a system that is somewhat unique compared to other identity-based projects. We are decentralizing different pieces of the identity verification process. Within the Humanity Protocol, there is a role known as identity validators. These validators could be entities such as banks, governments, or universities, which can issue credentials confirming specific characteristics about individuals. This decentralized approach aims to enhance the verification process while maintaining user privacy and security.

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Decentralized identity puts you back in control of your personal data, breaking free from the grip of centralized platforms that profit from your information.

They want to use identity verification in order to verify somebody. So, how do you start adding all these additional layers of information? The way we're doing this is by building a system that is somewhat unique compared to other identity-based projects. We are decentralizing different pieces of it.

In the Humanity Protocol, there is a role called identity validators. Imagine that to be potentially a bank, a government, or the university that you attended. These entities are able to issue an ID or a credential for you, stipulating that you have certain characteristics. When an application or partner wants to check against this information or make use of it, they would have to pay a fee. We also have a role called ZK proofers, which are almost like nodes that help encrypt and decrypt this information. Consequently, an application would have to pay a little bit of fees in the form of the HP token to the ZK proofers, the network, as well as to the identity validators in order to access this information.

Now, why do you think this type of decentralized, blockchain-based ID is needed? Why not just use centralized organizations to prove everything? I think there are a couple of reasons. First, there is the aspect of safety and security. Most of our data currently resides on large centralized tech platforms, and there is a growing desire among people to move away from that. It can be quite alarming when you browse websites that seem to know everything about you. The advertising they serve is tailored specifically to you, which is becoming increasingly dystopian.

Secondly, having a decentralized network for identity aligns well with what blockchain is designed for from the outset, as well as the potential utility of a token. It creates an economy where identity validators and ZK proofers can be rewarded for their work. There is genuine utility for that token because applications or companies need to access this information. Ultimately, this information about a person is entirely self-sovereign, meaning you, as a human being, own that information yourself.

When discussing how people can control this information with this system versus the traditional system, it’s important to note that with the Humanity Protocol, you'd be using existing verification and information that are already live on centralized databases and porting them over to this identity system. For example, consider something as simple as where you went to school.

There are a couple of places that hold that information: the university you attended, which knows where you went to school, and LinkedIn, where you provide that information for free. However, you don’t receive anything in return; instead, they monetize that information through ads and premium subscriptions, allowing recruiters to reach out to you for job offers. The interesting aspect of LinkedIn is that you don’t really know whether the information is true or not, as it is self-reported. People can claim to have attended a school when they haven’t, and there have been many cases of individuals doing just that to land jobs.

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There are a couple of places where I have that information. One is the university that you actually went to; they know where you went to school. The other is LinkedIn, where you actually give that information for free. You don't get anything out of it, and they monetize that information through ads and by selling premium subscriptions so that recruiters can reach out to you to try to offer you a job, among other things.

The other interesting aspect is that even with something like LinkedIn, you don't really know whether the information is true or not. It's self-reported, meaning I could say I went to a school when I haven't. There have been many cases of people doing that, in fact, to land jobs. What we are proposing is to imagine the university that you went to as an identity validator. They would issue a certificate stating that Camila went to this university, studied this, and had this GPA. This information would be controlled by you and encrypted, so nobody can see it.

Now, imagine that some individuals want to build a decentralized LinkedIn. If you want to be a user there, what can happen is that you grant access to this information on a case-by-case basis or only if someone makes a payment for it. At any point in time, you can also revoke this information. What is also interesting with ZK Proof is that we can allow people to check against information without you revealing the full extent of that information. For example, if someone asks whether Camila went to university in the US, the answer could simply be "yes" or "no," without revealing which university she attended.

These are all functionalities that we can implement through the Humanity Protocol. With existing systems, the best option is to put all that information into LinkedIn, where they can do whatever they want with it. Even more importantly, whoever needs that information can tell if it's true or not because you could have just input whatever you wanted.

Regarding your question about our go-to-market strategy or our plan to onboard all these institutions as identity validators, we are focusing on two main areas. We are starting with the Web 3 world, specifically with proof of humanity, checking whether you are a human being or not. Our goal is to get as many people onboard as possible. As we have seen recently with many big airdrops, there is a significant problem with civil attacks and ensuring that we are reaching unique individuals rather than just farms and bots. Thus, many of our partners will be in the Web 3 space, and a lot of the users will be Web 3 native.

As we grow that user base, the intention is to start partnering with different institutions that want to verify various pieces of information. The good thing about crypto is that there will be some sort of incentive mechanism in place. For instance, if your university issues a credential for you, and someone needs to check against that information, the identity validator (your university) might receive a small fee for doing so.

Essentially, we are creating an economy for your information while you control it, which rewards everyone involved in this ecosystem. Initially, we will focus on Web 3 native use cases, with one of the most pressing issues being airdrops and ensuring that these token distribution systems aren't being civil attacked.

Specifically, we are looking to onboard various identity verifiers to help crypto teams verify that their users are indeed human. The very start of this process is...

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Empowering individuals to control their own information while creating a fair ecosystem is the future of digital identity.

Creating an Economy for Information Control

This initiative is essentially about creating an economy for your information while you control it, which rewards everyone who is a player in this ecosystem. Initially, the focus will be on web three native use cases. One of the most pressing issues, as mentioned, is airdrops and ensuring that these token distribution systems are not vulnerable to civil attacks.

Identity Verification Solutions

To address this, the key question is: What information or which identity verifiers will you be able to onboard to help crypto teams verify that their users are human? The very start of this solution is the biometric solution, where the first identity validator is the foundation behind the Humanity Protocol. This will serve as the initial piece, and from there, the plan is to build out various verticals by partnering with other identity validators.

The Role of Humanity Protocol in the Age of AI

Another critical aspect is the impact of AI on the distinction between what is real and what is fake online. The Humanity Protocol aims to play a significant role here. While it is not anti-AI—in fact, I use AI tools all the time—there is a growing need to emphasize the value of humanity. Even outside of financial considerations, there is a reason why art collectors are willing to pay for art created by humans, despite the prevalence of AI-generated art. The most expensive pieces, including NFTs, are still predominantly created by human beings.

The value of human creativity is evident in the works of our favorite movie stars and pop stars, who are all human beings contributing their creativity to the world. With technology making it easy to generate content using AI, it becomes increasingly important for people to know whether a creation is human-made or not. This is a problem that the Humanity Protocol aims to solve, independent of financial implications.

When we consider the financial aspect, such as airdrops or advertising, the issue of click fraud and bots generating revenue for ad publishers becomes apparent. These bots browse websites without any human interaction, which poses a significant problem. Human beings are the true consumers of advertising; for instance, showing a human an ad for a car is valuable, while showing a bot the same ad is not.

Development Phase and Future Plans

As for the development phase, we are currently preparing to launch the testnet in 2049 in Singapore. We will have a space where individuals can scan their palms to participate in the test network. While they will need to redo the process when the mainnet launches, there is already functionality in place for users to enroll, check if they are unique human beings, and verify their identities based on the test network.

In terms of the mainnet launch, we are targeting the end of the year for that rollout. If anyone is in Singapore, they should definitely visit our space to experience this firsthand.

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In a world where bots dominate, being human should be your superpower.

In Singapore, we actually have a space where people can go and scan their palms to test it out. They will be part of the test network, so when the mainnet comes, they will have to redo it. However, there is already the ability for you to enroll, check if you're a unique human being, and also verify who you are based on the test network that we have. Therefore, in case you or anybody who's watching is going to be in Singapore, they should absolutely drop by our space.

When asked about the launch date for the mainnet, I mentioned that we are hoping and targeting towards the end of the year. As for whether that will immediately have a token, it is still up in the air.

This sounds super interesting! So, if you're in Singapore, go check out the new scanner to be a part of the Humanity Protocol. To wrap up, I would love to share my long-term vision for the Humanity Protocol. I believe there are potentially multiple solutions in the decentralized identity space, but we hope to be one of the most used ones. We believe that we can scale, move very quickly, and get as many people on board as possible.

As Web 3 continues to mature, we see various applications such as airdrops and games. If we look at governance, particularly in DAOs, it is currently all about proof of stake—the richer you are, the more votes you get. It would be really interesting to get into governance structures where it is actually one person, one vote, or at least incorporate a component of that.

Another key consideration is that with blockchain, everyone is very focused on higher TPS and lower gas fees. Every single blockchain is trying to solve that, whether through layer two, layer three, or new layer ones. However, the problem is this: if there is no ability to verify that you are a human being, it could potentially lead to prioritizing transactions for human beings.

Today, any blockchain has utility as people are building out financial incentives, whether in the form of airdrops or different sorts of rewards. However, bots will swarm these opportunities, making any blockchain pretty much unusable. If you remember back in the days with Ethereum or Polygon during big NFT claiming events, the ability for people to create an unlimited number of wallet addresses anonymously and leverage computer programs and bots to fight for transaction speed has been a significant issue.

As gas fees get lower and transaction TPS gets higher, there will be more and more bots. There really needs to be a solution where blockchains and projects can check if someone is a human being or not. This will be key going forward for the industry to continue developing.

I am super excited to see the progress of the Humanity Protocol and look forward to it going live in Singapore. Thank you so much, Terence, for joining me; it was fascinating! Thanks a lot, Kima.