Blockchain-based startup ShoCard has secured $1.5 million in a funding round led by Morado Ventures Partners, AME Cloud Ventures, Enspire Capital and Digital Currency Group for its digital identity card that can be used through a mobile app.
Founded in May this year, the startup ShoCard allows users to certify and store identification documents directly into the blockchain, allowing accessing them later whenever a user needs to provide proof of identification. This technology runs the disruptive digital currency Bitcoin. The startup aims to remove the need to carry paper documents for identity verifications which is the core reason behind top investors funding the startup.
“A lot of companies are looking at the blockchain for things other than bitcoin,” said Jeff Weitzman, co-founder of the startup. “We have created a digital identity card that is as easy to use as a driver’s license but it’s so secure that a bank can rely on it.” For an instance when a ShoCard is created, users can scan and sign identity documents, the mobile app will then close that record by generating a private and public key. To send it to a network that runs bitcoin software, the record would be encrypted and hashed.
“When you make an online purchase, sometimes you are directed to have your bank’s website and you have to log in or enter some information. ShoCard removes the complexity as you only need to approve purchases with your phone once you are identified,” said Author Romain Dillet.
With the new flow of funds, the startup plans to expand the team and pursue additional partnerships by signing deal with banks and institutions depending on sensitive data. Considering the demand for blockchains to transfer lots of sensitive ‘cargo’, including sensitive data such as contracts, wills, licenses, patents and essentially anything that needs a third-party authorization, the startup can reach heights.