Introduction to authbond

authbond, tackles the issue of accountability in Web3 contracting, where pseudonymity can lead to delivery challenges. Traditional bid bonds effectively mitigate risks of project defaults in conventional contracting but have not been widely applied in the Web3 space. authbond innovates by incorporating privacy-preserving Know Your Business (KYB) confirmations and bid bond deposits into reusable on-chain identities, enhancing trust and transparency in digital trade.

The platform enables organisations to issue Requests for Proposals (RFPs) with defined selection criteria. Applicants can import their business data and submit proposals, which are then linked to privacy-preserving ID-NFTs. These NFTs verify KYB completion and represent the bid bond, ensuring that only complete and verified proposals are considered. This process reduces the risk of financial losses and increases procurement efficiency. authbond leverages eIDAS 2.0-based identities and integrates with existing solutions like F6S and Privé, ensuring compliance with MiCA outsourcing regulations and establishing provenance for proceeds.

Using privacy-preserving ID-NFTs by authbond incentivises honest data provision while protecting user privacy. The platform also promotes trust through intermediated interoperability, benefiting Europe's digital economy and virtual commerce. This approach democratises access to on-chain economies, allowing DAO contributors to use real-world identities for Web3 work opportunities.

Motivation

authbond addresses key issues in Web3 contracting by tackling free-riding and improving financial security. Current Web3 contracting methods don’t comply with MiCA regulations or verify contractor identities effectively. Many foundations struggle to trust the contractors they’re funding because it’s hard to verify their liquidity, past performance, or business legitimacy. authbond integrates KYB and bid bonds into on-chain identities, allowing verified commitments and compliance, which increases trust between funders and contractors.

Potential Demonstration Scenario

For example, Foundation X issues an RFP using authbond. Contractors verify their identity with eIDAS 2.0-compliant KYB, then submit proposals and deposit bid bonds in the form of ID-NFTs. Foundation X reviews verified proposals and uses smart contracts to handle bid bonds, ensuring compliance and security throughout the process.

Progress since GG21

• Completed low-fi wireframe designs for the platform.

• Held user feedback sessions and adjusted our approach based on our learning.

• Refined the target audience to better align with the needs of our users.

• Finalised the platform’s technical architecture.

How We Will Use the Funds

We are four months into development and have covered initial costs. Since we’re focused on user-centric development, we plan to use the funds for additional user research and community engagement. We’ve completed the first round of feedback and are preparing for more sessions. Funds will be directed to these efforts and to raise awareness to ensure the platform meets our users' needs.

Current Team Members

• Ben – CEO & Project Management
• Matthew – Full Stack Developer
• Nicole – Marketing & Business Development
• Vika – UI/UX Design & Research

Past Contributors

Dr. Joshua Ellul, Centre for Distributed Ledger Technology at the University of Malta – Project Coordination