Humanity Protocol Raises $20M for Palm-Scanning Digital Identity Platform at $1.1B Valuation

Humanity Protocol, a Web3 identity verification platform, has secured $20 million in venture funding at a fully diluted valuation of $1.1 billion. The funding round was backed by prominent venture capital firms Pantera Capital and Jump Crypto. This latest investment comes after the protocol’s successful testnet launch last fall.

The investment will support the development of the platform’s “Proof of Humanity” protocol, which uses palm scanning technology to link users’ biometric data to their digital identity across Web3 platforms. The platform has already established a strong user base and management have been exploring partnerships with universities for enrollment initiatives. The funds will also facilitate the protocol’s upcoming mainnet launch, though no specific date has been announced.

Humanity Protocol’s approach represents an alternative to World Network (formerly Worldcoin), which employs iris scanning technology for digital identity verification. World Network has reached 10 million verified users but faces regulatory challenges, including a ban from Brazil’s data protection authority and criticism from German regulators regarding biometric data handling.

Humanity Protocol founder Terence Kwok, who recently established the Humanity Foundation to advance proof-of-humanity solutions, states that palm scanning technology offers a more familiar authentication method for users compared to iris scanning, while maintaining security standards. The platform positions its palm scanning approach as a less intrusive biometric verification method.

Sebastian Rodriguez of Privado ID notes that biometric verification can align with privacy principles when proper consent mechanisms are in place. Rodriguez observes that privacy centers on consent rather than anonymity. Regarding World Network’s approach, Rodriguez critiques its business model, stating, “The Worldcoin model assumes that they will be a monopoly” and that if successful, “no other source of uniqueness is relevant.”

Biometric verification technology is emerging as a significant factor in Web3 adoption, with potential applications extending to financial services and healthcare integration. Humanity Protocol has already demonstrated this potential through its partnership with Open Campus to create blockchain-based educational credentials using its verification technology.

Source: CoinTelegraph

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January 28, 2025 – by Ali Nassar-Smith