Solana Introduces Verification Service to Boost Internet Capital Markets

On May 23, the Solana Foundation announced the launch of the Solana Attestation Service, intended to establish a trust framework for what enthusiasts refer to as “internet capital markets.”

This open-source platform enables authorized issuers to link off-chain credentials, such as know-your-customer (KYC) data, geographical eligibility, or accreditation details, directly to a user’s wallet address without revealing personal information on the blockchain.

These attestations are stored within the wallet, enabling seamless transfer between applications and can be verified using a software development kit.

The initiative aims to streamline the onboarding process by eliminating repetitive verification checks and removing the necessity for each project to manage sensitive identity documents.

Streamlined compliance with portable credentials

The Foundation stated that developers could utilize the Solana Attestation Service to satisfy regulatory requirements, restrict access to region-specific services, or create reputation systems designed to prevent Sybil attacks.

With this system, investors can maintain “KYC passports” that can be reused in future token sales, while gaming studios may issue badges verifying players’ histories, and platforms dealing with real-world assets can confirm buyers’ accreditation status prior to the release of digital securities.

Identity service providers within Solana’s ecosystem have already incorporated the service, and infrastructure firms are planning to utilize attestation data for assessing risk and monitoring transactions.

The protocol was developed by the Solana Identity Group, which has committed to releasing further identity standards and encouraging contributions from other teams via open-source channels.

Emergence of internet capital markets

The launch of the Solana Attestation Service coincides with the Foundation and various independent developers advocating for the concept of internet capital markets.

This model allows creators to pursue decentralized funding via tokens, which function as equity in the creator’s project, providing rights to share in potential returns.

A primary platform for this emerging concept is the Believe app, which enables creators to showcase their projects and seek funding through posts on X. Recently, the app received endorsements from notable figures like Australian tech entrepreneur Benjamin Pasternak and TBH app founder Nikita Bier.

This resulted in a dramatic increase in the launchpad’s native token, LAUNCHCOIN, which skyrocketed by 4,500% between May 11 and May 14. As of the latest data, LAUNCHCOIN has maintained an increase of 2,800% since May 11.

The new attestation service from Solana plays a crucial role in this advancing crypto sector, allowing decentralized applications to verify legal qualifications without needing to recreate traditional databases.