China Extends Blockchain Beyond Borders with New Malaysian IDV Service

Malaysia-based Zetrix has launched a new identity verification service called ZCert enabling the digital authentication of Chinese Digital IDs outside of China. The ZCert system is designed to facilitate electronic Know Your Customer (eKYC) processes for international entities verifying the identities of Chinese nationals.

The service operates through Zetrix’s integration with China’s national public blockchain, Xinghuo BIF, providing an official cross-border digital ID verification solution.

Supported by China’s Ministry of Industry and Information Technology and led by the China Academy of Information and Communications Technology (CAICT), Xinghuo BIF represents a significant effort by China to develop a national blockchain infrastructure with global reach and applications across various industries and sectors.

It consists of 7 supernodes covering main areas in China and 29 backbone nodes providing services to various industries and cities, and is one of the most actively used blockchain platforms globally, resolving approximately 100 million blockchain identifiers daily.

The ZCert service enables Chinese nationals to publish their Digital IDs on Xinghuo BIF, making the data accessible to verifying entities overseas. Zetrix’s Astron Supernode acts as the mechanism through which this verification occurs. According to Zetrix co-founder TS Wong, the system allows KYC processes to be automated, and only critical information is shared in an encrypted manner.

The service also integrates with other digital ID systems, including Malaysia’s National ID and WorldID. The ZCert system utilizes a Web3-based Self-Sovereign Identity framework, which enables selective disclosure of information, allowing individuals to share only relevant personal details during verification while maintaining privacy.

This launch follows Zetrix’s introduction of a similar service that allows for the verification of Chinese driving licenses overseas. ZCert is expected to expand in the coming months to include the verification of additional documents critical for individuals and businesses.

Zetrix is operated by MY E.G. Services Berhad (MYEG), a private Malaysian digital services company.

The extension of China’s blockchain for digital ID verification across borders helps to illustrate the geostrategic importance of this kind of digital infrastructure. The Carnegie Endowment for International Peace, a respected Washington think tank, recently published commentary urging the Quad – an informal strategic alliance comprising the United States, Japan, India, and Australia – to make the promotion of Digital Public Infrastructure a key priority, framing it as a means of counterbalancing China’s growing influence in the region. Digital ID is, of course, a central component of that vision of DPI.

Source: The Malaysian Reserve

–

October 4, 2024 – by Alex Perala and Cass Kennedy