NFT ID - Development of a prototype for a blockchain-based Remote-Ident solution and its impact on User Experience

Jakob Wiemer

Remote Identification has become highly relevant in the context of the COVID-19 pandemic and the recent trend of online banking, stock or crypto marketplaces and insurance companies. Due to the increasing number of new users every day, online providers such as TradeRepublic, Coinbase or N26 are faced with the challenge of offering a user-friendly way of identification. At the same time, smartphones are becoming more capable and could eventually enable technologies like real-time Deepfakes in the near future. This puts conventional Remote-Ident methods to the test in terms of Security and User Experience. In this context, this master's thesis examined the three most common methods of remote identification in Germany: VideoIdent, PostIdent and eID. It was found that PostIdent is the most secure procedure, but it costs the user a lot of time and therefore makes it impossible to register spontaneously with an online bank for instance. In terms of UX, eID is the most advanced method as is provides a fast identification experience without a third party involved. However, it it barely supported by online providers like TradeRepublic, Coinbase oder N26. VideoIdent is the most commonly used Remote-Ident method as there is no prior setup required and can be processed significantly faster than PostIdent. However, it is also less secure than PostIdent, requires a third party to perform the identification within a video chat and is slower than eID. None of the established methods thus offer an ideal solution in the aspect of security and UX. In this context, a blockchain-based approach for remote identification was investigated. Non-fungible Tokens have been found to provide the technical foundation to securely represent passports and other identity documents to the Blockchain through their characteristics of uniqueness and proof of authenticity. Subsequently, a visual prototype was developed that simulates the User Experience of a blockchain-based Remote-Ident method. In particular, the disadvantages of conventional methods are being addressed and improved.