Civic had its ICO in June, just as token sales were really taking off. At the time I liked the concept but was sceptical of the way tokens were being allocated, with just 33.3% of the tokens available to investors.
Since then I’ve realised that regardless of what I thought of it, the allocation strategy seems to be working well. I’ll come back to the tokens in a moment. First, let’s look at what Civic actually is.
Civic offers a smart way to verify a user’s identity. Verified documents are stored in an app on the user’s smartphone. The network allows users to send whatever information they want to a third party when they need to verify their identity.
The user chooses which documents or information they want to send- whether it’s proof of their nationality, their driver’s licence, or any other documents.
Data privacy laws that are coming into effect around the world mean storing another person’s personal data now comes with significant responsibility. A data breach can carry heavy penalties if a citizen’s personal information is compromised.
The Civic network doesn’t store any personal data, and a company verifying a person’s identity doesn’t need to store that data either. The network simply allows the information to be transmitted between parties.
Identity verification will be a crucial element in the digital economy, particularly when it comes to the intersection of the digital world and the real world. The world economy loses tens of billion to identity theft and fraud every year. Add to that a series of scams in the ICO market and we can be sure that regulators will be cracking down on ICOs soon.
We may not know what the future holds, but I think one thing we can be certain of is that anyone participating in the digital economy is going to need to prove their identity when they sign up to a network or participate in an ICO.
Anyone who has worked in the world of start-ups and venture capital will tell you that ideas are commodity. Ultimately it’s execution that counts. In the next few years, we will probably discover that the difference between successful tokenised projects and those that fail will be execution.
CEO Vinny Lingham has built, funded and sold successful start-ups. He’s also been involved with cryptocurrencies from early on and serves on the board of the Bitcoin Foundation. In fact, one of his early companies, Gyft, was one of the very first vendors to accept Bitcoin. He seems to really understand the network affect that drives the growth of digital projects.
Civic’s token sale was less than six months ago and we are already seeing the team making progress on the execution of the plan. This is also where the token comes in, because the company kept a third of the tokens aside to incentivise usage.
Civic has so far allocated tokens to over 20 partners including WikiHow, Trade.io, INS Ecosytem, TokenMarket, Yola and BitGo. In doing so it is promoting adoption of the service.
Anybody signing up on those networks, or participating in their token sales becomes a Civic user. The more users on the network, the more of an incentive there is for other companies to use the network.
One of the questions that keeps coming up in the crypto world is “Are people actually using these apps?”
We may not know how many people are using Civic, but we do know companies are signing up, and we know KYC and other forms of identity verification will be an essential part of the ecosystem. If any blockchain project is sure to see widespread adoption, it’s Civic.