Recently, Coinbase has launched the Coinbase Verifications platform on the Layer 2 Base, officially bringing Identity Verification (KYC) services to the blockchain.
The exchange platform states that implementing identity verification at the protocol level on the chain will enhance security and transparency, offering a solution to common challenges related to traditional KYC methods.
“Built on the open standards of Ethereum’s Verification Service, our verification processes are public and interoperable.”
Coinbase Cloud, Coinbase’s blockchain infrastructure
This move marks Coinbase’s entry into the decentralized identity segment. Notably, in this segment, Proof of Humanity, an identity verification protocol where users can submit social proof and identity videos, led the way when it was launched on the Kleros app built by Ethereum in 2021.
Jesse Pollak, the founder of Base, noted that the KYC service on Layer 2 Base is a step towards “using public, open-source infrastructure to enable the next billion users to participate on-chain.”
According to data from analytics company Dune, the Coinbase Verifications platform has received around 9,727 verifications from users. This service is expected to be particularly useful in combating Sybil attacks, where hackers use multiple wallets or nodes with fake identities to use services or carry out exploitation.