The multiple utilities of PASS
PASS is a standard ERC20 token (though unique in a very important way), which is used for a variety of different purposes throughout the Blockpass ecosystem and networks in which Blockpass services are implemented. The original distribution saw 250 million PASS of the total hard-cap of 1 billion PASS tokens made available. Launched in May 2018, shortly after the Blockpass app itself launched, PASS tokens were revolutionary in their nature as ‘KYC tokens’ - that is, tokens which required the user to undergo a KYC check (through Blockpass) before they could transfer the token. With this important facet, PASS tokens enable a user to prove that they have a verified identity just by transferring a single token. In the initial stages, the PASS token’s main use was to facilitate the growth of Blockpass’ KYC-enabled user base and to provide discounts on the services Blockpass offered, but the token has since developed and grown towards its full potential.
Today, there are some specific, stand-out uses for PASS that should be highlighted. The first of these builds off the unique KYC aspect of the token, as it enables PASS to be utilised as an embedded identity verification or whitelisting solution, both of which are able to be built into smart contracts using PASS tokens. Avoiding the need for any complex methods of proving the eligibility of those involved, the simple use or transfer of PASS signifies that a user has been through the KYC process and is compliant with regulations. In essence, this means that the PASS can act as a stand-alone on-chain identity protocol just by itself, and in turn enables any ecosystem it is introduced to to provide a fast and simple means of verifying identities or proving compliance, empowering a network to show it is line with regulations in a non-intrusive manner. PASS can also be used in a general rewards scheme to benefit both the verifiers and the verified in a Proof of Verification Rewards protocol, with users and businesses incentivized by building token balances.
Similarly, PASS can be used to introduce or power reputation systems across blockchains, with holders of PASS able to stake the tokens against some claim or agreement (such as ownership of an object or authorship of a piece of work for example). Such tokens would be held as locked collateral by the network or ecosystem, with other users or smart contracts able to set limits of what is required based on the size of the claim being made or other metrics they deem useful, building a reputation for trust if their claims or promises prove truthful. The willingness of a participant to stake their tokens can be taken as a measure of their trustworthiness, as users are not typically willing to lose their financial or reputational standing - the blockchain version of ‘putting your money where your mouth is’.
NFTs are another area where the staking of PASS can be used, allowing users to indicate ownership of specific NFTs. Individuals can stake PASS tokens against their ownership of non-fungible tokens, allowing them to be certified and therefore able to be provably owned by those in the network. With the integral importance of NFTs to the future of online interactions and blockchain systems as they become the norm, being able to identify and show the true ownership will become a vital role in allowing the ecosystem to function.
Perhaps less obvious but not less useful is the ability of PASS to prevent fraud and spamming in the ecosystems they are employed in. With the requirement that a PASS holder undergoes KYC before transferring their tokens, the presence of a PASS token in a transaction indicates that the entity involved is human, not a bot, and therefore limits the amount of spam that a network would experience. Likewise, the necessity for the individual to have passed through the KYC process weeds out those who would seek to employ fraudulent transactions or means as their suitability has already been vetted and their verified identity is tied to any interaction they make with PASS tokens.
A particularly key aspect that PASS tokens can be applied to is the area of zero-knowledge verification, allowing users to prove their eligibility or acceptability for certain criteria without revealing any personal information. PASS tokens enable on-chain oracles proving age, geographic location, investor class, or any other metric that is added, with no underlying elements of the user’s identity being shown and no personal data being retained. This is the next generation of user privacy and security which is being worked on by cryptographers and developers seeking to change the standard practice of companies taking and using user data, rather than individuals being in charge of their own personal information. Seeing the regulatory trends for customer rights that have been coming into effect over the past few years, zero-knowledge proofs are going to become the de facto standard as we move into the future of web3 and the Internet of Things, particularly when dealing with immutable ledgers.
These are just some of the varied ways in which PASS tokens can be utilised to enhance and improve any ecosystem they are introduced into, and some blockchains and companies are already enjoying the benefits they bring, but even their simple presence and use in the blockchain world is an encouraging move towards the regulatory compliance that the space needs to see greater adoption and security. Its continued adoption and the growth of Blockpass both work towards proving that blockchain and cryptocurrencies are suitable for mainstream industry and the general population’s use. So, when asking the question ‘What use is a PASS token?’, the answer turns out to be ‘Quite a lot!’.
The Blockpass platform is fully automated and hosted in the cloud, with no integration or setup fee. Businesses can sign up to the KYC Connect console in a matter of minutes, test out the service, and start conducting identity documents verification, KYC and AML checks. Sign up for FREE at console.blockpass.org.