Advanced Identity Systems by Dragonchain

It’s never been more important to protect personally identifiable information (PII) as it is today. Every purchase we make, every site we visit, every event we attend creates a collection of data just waiting to be exposed. The vast majority of this data is collected, held, and controlled by centralized companies. These companies offer a single access point for data breaches by either bad actors or leaks from inside the business.

Dragonchain offers an Advanced Identity System designed to decrease the risks of data exposure of individuals and limit liabilities to businesses. The system offers identity verification for IoT and device sensors as well as human identities. It also provides a way for individuals and businesses to monetize and reuse proven identity data.

Who Benefits from Advanced Identity Systems?

Dragonchain believes every individual should have complete ownership over their own personal data and digital identity. However, we understand that the individual is not the only one who needs access to their data. Businesses and organizations will need to view and verify identifying information for various reasons. The main objective is to implement an identity system where the individual controls who, when, and for how long other interested parties have access to their data.

Advanced Identity for Individuals

The use of an advanced identity system allows individuals to own and control their personal data. Through the use of a user-friendly mobile application, individuals can decide where their personal data is stored, who has access to their data, and for how long that access is granted.

Advanced Identity for Businesses and Organizations

Businesses and organizations will find enormous protection against internal and external data breaches with the use of an advanced identity system. By removing the storage of sensitive information, the system can decrease the risks and liabilities that routinely come with a breach of identifying data.

Advanced identity systems also allow businesses to streamline Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to prove anti-fraud and regulatory compliance.

Advanced Identity for Internet of Things (IoT)

There is no shortage of IoT devices in use today. Each digital device brings with it an open vector for bad actors to access sensitive information. Advanced identity technology can be used to prove any digital device is as claimed thereby limiting fraudulent devices from being used to gain access to connected systems.


Factor is Dragonchain’s Advanced Identity System. Factor breaks identifiers such as first name, last name, physical address, date of birth, Social Security Number (SSN), etc. into, what we call, atomic and granular factors. Each factor is an individual component used to prove the identity of a person or digital device. Factor allows the individual to share identifiable information with businesses or organizations to prove their identity without exposing sensitive information. Factor is portable for use with any other identity system and offers simple user-friendly features that are easy to understand.

Derived Factors

Since identifying information is broken into individual factors, the system allows for the use of derived factors. Derived factors make it possible to prove someone meets certain criteria without needlessly exposing sensitive data. As an example, an individual can prove they live in a certain city without exposing their address.

Verified Proof

Once these factors are verified, proof of each factor can be distributed to interested parties by grouping them together or sharing them individually.

Those conducting KYC/AML procedures can collect proof the individual met the required criteria without storing the data. This mitigates the risk of repeatedly collecting, validating, and storing the same identifying information during the KYC process.

Monetize and Reuse Identity Data

Instead of big tech monetizing data, our advanced identity system allows the individual to monetize their own data if they chose to do so. Users can sell their data to third parties such as advertisers or researchers while protecting personal information from tracking and earn money in the process.

The ability to reuse already verified identity factors amongst businesses without storing or exposing sensitive data can also create additional revenue streams. Businesses that originally performed a KYC verification could receive fees when an individual uses the approved verification factor with a different business. This allows the original business to recapture some of the initial costs associated with KYC.

Personal Identity Providers (PIP)

Identity management will include the use of a third party to verify that data from passports or driver's licenses is valid and not counterfeit. Identity providers using our advanced identity system with integrated quantum-safe encryption can secure data at rest and in motion thereby adding a level of protection unmatched in the industry.

Proof of Human

Dragonchain’s advanced identity technology can provide two-way authentication between two or more individuals to prove they are human. The system provides measurable proof that a user is not a bot and is not impersonating someone else.

How Proof of Human Works

If two or more individuals meet in person, they could exchange selfies via the Factor app. The photos are then recorded with their cryptographic signature to the blockchain. Each individual can then prove their identity and prove they are in fact human by sharing the verification hash.

The proof can be strengthened as other individuals verify identity. The end result is a verification hash that has multiple cryptographic signatures along with some level of biometrics attached (selfie, physical description, etc) while still protecting the privacy of various identifying elements.

This allows a set of individuals to independently verify that a certain individual is who they claim to be. For those that chose to do so, proof of human can also be verified by an official third-party identity provider.

Why Advanced Identity Systems are Important

In our digital environment, countless organizations and their customers have found themselves to be the victim of data breaches. In 2021 alone there were 1,862 data breaches, far surpassing a high of 1,506 set in 2017. Of the breaches last year, 83% involved sensitive information.

Ransomware attacks accounted for 66% of data breaches (up from 37% in 2020) with the average ransom payment being $812,000 in 2021. The liabilities to the business's bottom line as well as employee and customer data are great and show no sign of slowing down.

Identity systems focus on two key attributes, security and privacy.


Bad actors target businesses and organizations to access the vast amounts of personal data being stored. They then sell that data on the black market to the highest bidder. Businesses should enable sufficient security protocols to protect their data as well as the data of their customers and employees. When businesses stop storing sensitive data, bad actors no longer see the business as a prime candidate for an attack because the business no longer holds the personal data they seek.


A robust identity protection program is crucial for businesses to maintain regulatory compliance in the protection of personally identifying information. Laws such as HIPAA, CCPA, and GDPR were crafted to enhance privacy and protect PII. The right to be forgotten is an important right for the individual and allows one to take a proactive approach to limit the amount of personal data online.

Advanced Identity Systems Technology

The technology behind Dragonchain’s Advanced Identity Systems stems from our patented interoperable hybrid architecture. Dragonchain uses RESTful APIs to connect any application, legacy system, or external blockchain and makes use of any existing tools a business would require.

The hybrid architecture allows the business or individual to have complete control over their data. The platform removes sensitive information from the verification process to offer validated proof of identity without exposing identity elements. Every validated proof of identity is secured with measurable proof of approximately $4 billion USD each year.

The architectural separation of data from the proof makes it possible for businesses to prove compliance with all technical requirements (e.g. GDPR, CCPA, the right to be forgotten) to address the copious amounts of regulation that industries currently face without exposing sensitive data.

The system increases security, reduces risks associated with customer PII storage, and simplifies authentication. With our Advanced Identity Systems, individuals and businesses have control over the privacy of their information, including minimal, selective, and progressive disclosure of attributes or other data.

Learn about other solutions for your business.

Advanced Identity Systems Use Cases

Real Estate

From banks to realtors, our Advanced Identity System offers more efficiency and automation of payments, access controls, title and deed services as well as be used for KYC/AML verification.

Factor provides a transparent, verifiable process in a trustless environment without sacrificing privacy or the security of sensitive information.

Learn more about Dragonchain’s applications in real estate.

Connected Vehicles

Today’s vehicles have never been more connected. However, they contain many attack vectors that could have devastating repercussions. Our advanced identity technology can prove that information coming into the vehicle is from an authorized source thus mitigating the risk of bad actors electronically hijacking the vehicle.

A vehicle’s “black box” can be a clarifying tool in connected vehicles. Our interoperability technology coupled with our advanced identity technology provides ubiquitous data for insurers, manufacturers, and authorities.

Learn more about how Dragonchain can apply its capabilities to connected vehicles.


In the healthcare setting, our advanced identity technology provides access controls and audit abilities without exposing unnecessary medical information. Patients are independently able to audit and control access to their medical records. If a patient becomes incapacitated, certain overrides can be used to access crucial life-saving data.

Learn more about Dragonchain capabilities in healthcare.


Since 2020, the voting integrity of the US election system has come under fire. Advanced identity technology can be used to prove the identity and eligibility of voters as well as allow the vote to be independently audited. This ensures that the voter is as claimed and that their vote was recorded accurately.

Learn more about how Dragonchain brings back voting integrity.

Consensus Protocols

Factor’s proof of human technology could be used for truly decentralized consensus with real human verification instead of centralized nodes on a network. Depending upon the architecture, a reputation metric can be applied to compete for blocks in the verification process without exposing personal information. A project could ensure that the verification nodes originated from a sufficient level of decentralization and that the individual running the node falls within a defined set of criteria. This ensures that those running the verifications nodes for the platform are well-intentioned.

The applications of our Advanced Identity System are unlimited. Contact us today to discuss where we can implement better identity controls for your business.