Nexera ID Deep Dive: A Programmable Smart Wallet Powered by Nexera MetaNFTs
Nexera ID is a groundbreaking solution that utilizes a programmable smart wallet that promotes privacy, security and self-custody. Its integration will lower the barrier of entry for users from Web 2.0 and Web 3.0. It will allow institutions and builders to promote self-sovereign identities that adapt to compliance requirements and drive effective self-regulation.
AllianceBlock recently unveiled the Nexera Protocol, a disruptive technology for creating mutable and composable NFTs, making them more flexible, scalable and extensible. Today, we formally introduce the first product built with Nexera’s MetaNFTs — Nexera ID.
Nexera ID is a next-generation digital wallet designed to securely store users’ digital assets and identity information within a particular type of digital storage token called a MetaNFT. Users can set up custom rules for transacting with their digital assets when sharing their data and specify rules for wallet actions, including recovery options.
Built on top of Nexera Protocol, Nexera ID utilizes soulbound MetaNFTs and inherits its flexibility and security to create a versatile, secure, self-custodial smart wallet with advanced recovery features. Balances, verifiable credentials and security rules are stored as attributes in a mutable and composable NFT, protecting privacy as the user becomes a self-sovereign entity. This smart wallet then acts as a digital passport that makes it easier for users and institutions alike to use or build solutions that will usher in a new era of adoption into Web 3.0.
After a tumultuous year in the industry, compliance, self-custody, self-sovereignty and regulation in blockchain have become a necessary conversation for industry leaders. Solutions are needed to promote effective compliance, enable self-custody and self-sovereignty and place focus on privacy and security to navigate the incoming scrutiny placed on the industry.
Versatility Lowers the Barrier to Mass Adoption
Nexera ID is a smart wallet that can hold more than just token assets but also identity information and rules. Its versatility lies in bringing the best of Web 2.0 and Web 3.0 together, offering a deeper feature set than existing mnemonic-based wallets have been able to offer.
Nexera ID can integrate with custodial, semi-custodial and non-custodial wallets and leverage existing social Web 2.0-based login platforms for simpler onboarding toward Web 3.0. Most online users already have at least one Web 2.0 identity. With Nexera ID, users can create a smart wallet using any of these credentials and immediately benefit from the security and self-custodial features of MetaNFTs.
Nexera ID supports native tokens within the wallet and wrapped tokens in existing mnemonic-based wallets. Users can directly transact with their assets using the wallet interface, similar to existing wallets, but without going through a third party or centralized intermediary.
For purchasing tokens, Nexera ID has Onramper integration built-in. Onramper aggregates a number of crypto on- and off-ramp providers. Nexera ID will support more providers in the future. Users can also swap tokens directly on DEXes and store them in their smart wallets for a fully self-custodial way of acquiring token assets.
Nexera ID can leverage existing Web 2.0 and Web 3.0 accounts and identities for identity information as Verifiable Credentials and authentication methods. Users can connect their social media accounts, email addresses, phone numbers, hardware-based authenticators, and KYC reports and create privacy-preserving zero-knowledge proofs (ZKPs) for authentication.
Users can also set up custom rules for actions in their smart wallet. They can utilize their social media profiles, email, phone numbers, hardware wallets, hardware authenticators like Yubikeys, and the like as verifiable credentials for their MetaNFT. Users can set rules globally for the wallet or per asset.
Combining customizable rules and verifiable credentials means that users have full custody over what happens in their smart wallets. More about this will be discussed in a later section.
Self-Sovereignty Goes Hand in Hand With Self-Custody
Nexera ID utilizes features of soulbound NFTs with dynamic data and metadata architecture to equip each user with a fully self-sovereign identity. The MetaNFT can take on traits that attest to elements of the individual’s identity — for example, that they have a valid GMail email address or Facebook account.
They can also get verified credentials through AllianceBlock’s Trusted Identity Verification Solution for compliance checks and adherence to regulations. The user undergoes an off-chain identity check with a trusted global KYC partner. Once verified, the verification is added as a trait to their MetaNFT in the form of a zero-knowledge proof.
The user can now use this verification to access applications or services using the Nexera ID protocol. For example, it would enable them to participate in token sales on AllianceBlock Fundrs.
However, there are a wide array of use cases, some of which were already tackled in the Nexera Protocol overview recently published. As more platforms support Nexera ID, users will be able to use it to log into multiple online platforms, sign legally binding documents, and distribute ownership of intellectual property, among other activities.
AllianceBlock CEO and Co-Founder Rachid Ajaja recently shared a preview of Lens Protocol integration with Nexera ID and AllianceBlock TIDV:
Most importantly, because the MetaNFT holds a zero-knowledge proof of KYC verification, the user can decide how much of the credential they disclose to any other party. They can offer zero-knowledge proof that they are, for instance, over 18 years old or that they don’t reside in a sanctioned jurisdiction without disclosing any further information. However, they can also provide plain-text proof or a digital copy of their verified documents if they wish. The user controls what and when they share personal information and has complete oversight of their credentials within the wallet interface.
AllianceBlock Co-Founder and CEO Rachid Ajaja shares how Nexera ID is championing the concept of self-sovereignty at the core of the solution:
“Nexera ID solves some of the biggest challenges in the space today around self-sovereignty, self-custody and privacy. This solution allows users, projects and institutions to have programmable smart wallets with multi-factor authentication and to customize their recovery rules in case of hacks, lost private keys, or mnemonics. Builders and developers can easily integrate Nexera ID to create interoperable solutions, making it easy to use their platforms and solutions. With Nexera ID, we are ushering in the next era of self-sovereignty, self-custody, security of digital assets and protecting users’ privacy. The launch of Nexera ID built on top of Nexera Protocol marks our biggest step forward in giving power back to users in protecting their assets and privacy and towards our greater mission to bridge the gap between decentralized and traditional finance.”
Multi-Factor Security Powers Programmable Smart Features
Nexera ID creates programmable smart wallets that allow users full custody and control over their MetaNFT and other digital assets. These wallets have multi-factor authentication (MFA) requiring the submission of a combination of a private key, email approval, and SMS approval, substantially reducing the risk that the user will lose access to their assets through a missing key.
Users can also set up custom rules and restrictions for their wallet, assets and identity information. Users can set up per-asset or global transaction limits or receive notifications on their connected accounts for the approval of any transaction or only transactions above a certain amount. Moreover, they can even set automated wallet locking, which puts a lock on all transaction activity, depending on the rules they have specified.
With Verifiable Credentials and authentication methods, users can set transactions to be verified in multiple ways. With recovery options available in the smart wallet, even when the users’ mnemonic phrases or hardware wallets are stolen, they can immediately pause all transactions and approvals on the wallet at risk.
The combination of customizable rules and verifiable credentials gives the unprecedented user self-custody, self-sovereignty, and multi-factor security over their Nexera ID smart wallets and their assets, identity information and rules. Users can program their wallets to trigger transactions at a particular price or time. Users can configure their MFA rules to enable programmed transactions to execute without additional approval or so that every transaction requires that the MFA process is completed.
MFA can protect users’ wallets to the extent that even if a hacker manages to compromise their private keys, they still can’t gain access to their wallets, as they need multiple verifiable credentials to gain entry. Moreover, should users’ private keys become compromised, it’s possible to freeze the Nexera ID wallet at risk, generate a new, clean wallet, and recover the assets, identity information and rules from the previous one. Nexera ID programmable smart wallets are a first of their kind and represent a significant advance in privacy and security while ensuring that the user experience is paramount.
The Balance Between Privacy, Security and Compliance Is the Key to Self-Regulation
Self-custody provides an attractive and secure option for many users, but keeping private keys safe and preventing them from becoming lost or stolen also comes with challenges.
The combined effect of all these challenges is damaging. Users are becoming mistrustful of centralized institutions because of recent incidents. While self-custody could be a solution, it has inherent challenges and risks, including a sometimes more complex user experience. Many non-crypto users will invariably be deterred by the lack of regulation and how things can go wrong dramatically. This creates a highly unfavorable environment for the mass adoption of digital assets.
International organizations and governments worldwide are increasingly working on building regulatory frameworks for digital assets — such as the Financial Action Task Force (FATF) Rules for Crypto Exchanges and Custodians and the Markets in Crypto Assets (MiCA) by the European Union. DeFi builders and developers must consider how they will implement compliance features into their solutions while preserving users’ privacy and full control of their data and who can or can’t access it. This doesn’t even account for the added complexity of user experience this can introduce, as users and businesses have to manage the information and development requirements to comply with these rules.
Self-sovereign identity solutions that allow individuals and entities an appropriate balance of compliance and privacy are the only way to break this obstacle. Nexera ID will advance the state of the current ecosystem with its identity solution based on MetaNFTs that are mutable, composable and extensible.
Businesses, builders and developers can integrate with the Nexera ID SDK and APIs to implement compliance solutions into their applications and platforms. Nexera ID will support multiple KYC providers, with providers being able to integrate easily via API and put their offerings on the platform.
Nexera ID will also implement an agnostic compliance rules engine that builders and developers can use. They can set rules based on pre-existing regulatory frameworks like FATF and MiCA or add custom rules depending on their local jurisdictions and regulatory requirements. Moreover, Nexera ID will also support OpenVASP, which enables compliance with global travel rules for Virtual Asset Service Providers. Applications and platforms that integrate with Nexera ID can then easily and optionally comply with the rules specified by sharing their ZKPs trustlessly or undergoing KYC checks through supported providers within their smart wallets.
As Nexera ID gains traction among traditional enterprises and the decentralized Web3 space, it will prove its ability to address the long-standing trade-offs between privacy, security, and compliance. It enables traditional businesses to fulfill their regulatory requirements to know the counterparty to each transaction while allowing decentralized protocols to continue offering the same permissionless access they provide today. By creating a safer, more compliant, privacy-centric solution for user identity, Nexera ID will ensure that there are limited barriers to the mass adoption of blockchain and Web3.
Institutions and Builders All Benefit From Nexera ID
Institutions, builders and developers will be able to reduce their time-to-market for their products and enable extensive scalability options, all while being a part of an ecosystem that allows for the simple cross-pollination of users, liquidity and information. This flexibility means that builders can quickly adapt to the ever-changing landscape of blockchain, particularly in regulation and compliance.
Nexera ID is available for builders or developers via our SDK to integrate into their products. Enabling this access to the industry can standardize the benefits of security, privacy and self-custody at a more incredible speed and scale.
Get connected with the team on the Nexera ID website, and learn how to get early access to the SDK.
The Next Era
Nexera ID is ushering in the next era of self-sovereignty, self-custody, security of digital assets and protecting users’ privacy. To promote greater adoption of DeFi, it is becoming increasingly essential to make onboarding into Web 3.0 simpler and easier with secure, self-custodial solutions that preserve users’ privacy.
The launch of Nexera ID built on top of Nexera Protocol marks our most significant step forward in giving power back to users; to adequately protect their assets, not compromise on privacy, reduce concerns of hacking and theft and easily onboard Web 2.0 users into Web 3.0.
Nexera ID’s key features grant users full custody of their assets and identity, enable them to act with full sovereignty without relying on centralized intermediaries and let them set and comply with rules to be entirely self-regulated. This combination sets the standard and raises the bar in self-custodial solutions for assets and decentralized identity. When integrated by users and builders, it will usher in an exciting and new era of blockchain adoption.
More information for users, builders and developers will be shared in the coming weeks. To learn more about Nexera ID, visit the website. If you’re a business or developer, get in touch with the team to find out how we can help you onboard on the next era for the next generation of smart wallets.
About AllianceBlock
AllianceBlock is building seamless gateways between decentralized and traditional finance by remedying issues in both spheres and linking them more closely. They see the future of finance as an integrated system in which the best of both worlds can work together to increase capital flows and technological innovation.
By bridging traditional finance with compliant, data-driven access to new decentralized markets, DeFi projects, and ecosystem-scaling tools such as funding and interoperability, AllianceBlock is building a next-generation financial infrastructure that aims to provide regulated financial entities around the world with the tools they need to access the DeFi space seamlessly.
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