There comes a time for decentralized identity startups when investors are looking for next-gen killer web3 apps, even in times of crisis. market volatility. They argue that blockchain-based identity systems are a portal for user applications in a decentralized country, whether part of the identity is used to send tokens or showcase a player’s accomplishments.
Entrepreneurs have come up with many decentralized identity or DID solutions. We have reviewed Magic, a startup based in San Francisco. who wants to make DID access as easy as logging into Slack and Medium. Spruce, another DID provider, offers a “login with Ethereum” feature which may be compatible with web2 identity systems. Then there is Singapore-based .bit, founded by two Tencent veterans to use domain names for DID.
In Los Angeles Cut out is the latest contender in this area to catch the attention of investors. The company recently raised $4 million, valued at $40 million, according to TechCrunch. The round was led by Vertex, an early-stage venture capital firm managed by Singapore’s sovereign wealth fund Temasek.
Carv takes a different approach comprehensive DID solutions, focusing primarily on the gaming industry. Its core products include an engine that collects player data from both web2 and web3 and stores that information under unique user IDs. On an enterprise level, Carv provides a data management service to game operators who can then request cross-platform data about new users, such as their reputation and achievements in established ecosystems such as Steam.
“When you’re onboarding a web2 user, it’s very important to lower the barrier. If you sign in with Metamask, which is sort of a safe for your private key, and you want to sign in from a different laptop, you’ll have to remember all those passphrases,” says Victor Yu, co-founder of Carv. “So giving yourself an ID in a way that’s more user-friendly, I think that’s very important.”
Carv starts with games, because that’s where most consumer-facing web3 development happens, Yu says, but the startup eventually wants to expand to other user scenarios as they become more mature.
“Essentially, in the marketplace, we are talking about consumer-facing use cases. Many of [the current decentralized apps] we probably only have hundreds of users a day, so it’s hard to explain why users need a DID,” says Yu.
Six months after the launch of the beta, Carv has partnered with over 90 games and has over 300,000 registered users. About 160,000 of them are active monthly, spending an average of nine minutes on the platform per session. The DID system is compatible with more than 20 layer 1 networks, including Ethereum and Solana, which Yu says will allow Carv to cover 95% of blockchain games in the market.
“Currently, there are between 300 and 400 blockchain games that have a significant number of users, while we already cover more than 70,” Yu explains.
Carv is already generating revenue from its white label data service. He also receives a share of NFT sales generated by games on his platform. In the future, the identity creator plans to provide customized user experiences, such as tipping others for their comments, and will charge for such microtransactions.
The company’s seed round was backed by a long list of participating investors, which is typical of web3 deals where startups try to forge partnerships with ecosystem players. These included EVOS (ATTN Group), SNACKCLUB (Loud Gaming), Infinity Ventures Crypto, YGG SEA, UpHonest Capital, Lyrik Ventures, Lintentry Foundation, PAKADAO, 7UpDAO and business angel Alexander Gadzilin, co-founder of NEAR.