Humanity Protocol, a decentralized identity solution, has recently achieved unicorn status with a valuation of $1 billion after a successful $30 million fundraising round. This round was led by Kingsway Capital and included notable participants such as Animoca Brands, Blockchain.com, Hashed, Shima Capital, and 20 other investors.
Funding and Development Plans
The capital raised in this seed round will bolster Humanity Protocol’s product development efforts as the company gears up for the launch of its public testnet slated for the second half of 2024. This marks a significant step forward in the company’s strategy to refine and expand its innovative decentralized identity solutions.
Humanity Protocol offers a unique approach to securing digital identities by scanning users’ palms and employing blockchain technology, zero-knowledge proofs, and a “proof-of-humanity” consensus mechanism. This technology ensures that users are human and not AI bots, providing a robust security measure that maintains user anonymity and privacy.
Comparison with Competitors
The protocol aims to offer a less invasive alternative to iris scanning technologies, such as those used by Worldcoin, which is led by OpenAI CEO Sam Altman. While Worldcoin has faced controversy and bans in several countries due to privacy concerns, it has amassed a user base of 10 million. In contrast, Humanity Protocol has rapidly grown its waitlist, attracting over half a million sign-ups in just one month since its public unveiling.
Humanity Protocol was launched through the Human Institute by Terence Kwok in February 2023. The project has garnered support from industry leaders such as Yat Siu, co-founder of Animoca Brands, and Polygon Labs, which assisted in building a testnet for the protocol earlier this year.
Yat Siu emphasizes the importance of ensuring that decentralized identity solutions are not overly invasive, complex, or cumbersome, especially during the user onboarding process. This approach is vital in gaining user trust and facilitating widespread adoption of blockchain-based identity systems.
Market Context and Security Concerns
The blockchain-based identity market is becoming increasingly competitive amid a global surge in data breaches and the growing influence of AI technologies. In 2023 alone, 8.2 billion documents were compromised across 2,814 reported incidents, highlighting the critical need for secure and decentralized identity solutions.
Humanity Protocol is committed to a decentralized data storage model, where no single entity owns the user data. Instead, all personal information is controlled solely by the user, aligning with global data protection standards and enhancing user control over their personal information.
As Humanity Protocol steps into the public spotlight with its upcoming testnet launch, it sets the stage for significant advancements in the field of blockchain-based identity verification. This development not only advances the technology itself but also plays a crucial role in shaping the future landscape of digital identity management and security.
