Three Emerging Concept to Investigate Now

To prepare for this eventuality, credit unions can begin studying and exploring the following possibilities:

Evolving authentication methods. Web1 relied mainly on passwords for access to online experiences; Web2 added new methods, such as two-factor authentication and OAuth (e.g., "Sign in with Google"). Web3 techniques are likely to rely on blockchain technology to admit users – or more realistically, their avatars – into virtual experiences. Self-sovereign identity use, storage and sharing are fast-evolving concepts to investigate.
Cryptocurrency transactions. Credit unions already know many of the on-ramps to cryptocurrency transactions thanks to long-standing Know Your Customer (KYC) and other regulations related to the movement of money. That said, currency is but one example of what are sure to be many crypto assets in the future. Already, we're seeing NFTs earn a substantial amount of activity, from good and bad guys alike.
Virtual experiences. In the metaverse, we're no longer at a screen; we're in it. It's complex enough to guard members' identities in a Web2 world. Fraudsters, scammers and even well-intentioned innovators that lack adequate data security and privacy controls are continuously posing new threats to personally identifiable information (PII). Layer on Web3's self-sovereign identities and the need for next-level education and hyper-personalized protection becomes clear.

Web3 Acceleration Calls for Expediated Action

If Web3 seems too far in the distance for the allocation of resources today, consider how quickly things are moving. Many of the virtual concepts and systems that will stand up the metaverse were democratized during work and school lockdown. During the COVID-19 pandemic, credit union members participated in that ecosystem more fully than anyone could have anticipated. Sometimes they did so safely; sometimes not. Identity data is extremely vulnerable in the untamed lands of hybrid interaction.

Instant Insights /

Web3 to Move the Goal Posts for ID Verification

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