Page 45 - FIGI: Security Aspects of Distributed Ledger Technologies

Figure 8: Service provider Kiva

It is using open-source Hyperledger technology to build national IDs and credit histories in Sierra Leone. A fallback proce-
dure allows third parties known to a user to recover a lost login for that user.

In cooperation with the United Nations and Kiva.org, the Sierra Leone Government is using DLTs to help the unbanked in
Sierra Leone build credit histories. Using the new Kiva Protocol built on open-source Hyperledger technology, the hope is
that the unbanked will be able to build a layer of identity that accumulates information about currently untracked financial
activities such as the repayment of micro-loans. 319 Kiva will administer access to the nodes, but partners such as banks and
nation-states will be able to control nodes within the Kiva Protocol. No tokens will be issued. 320 The IDs are attested by the
government and could potentially be used in neighboring countries,
Security Aspects: To address loss by the users of their critical ID logins, the Kiva protocol allows designated, private
‘attesters’ known to a user to ‘generate’ a key that allows the user to regain access to their ID.

have a peer group of observers and encourage to provide a proprietary live risk analysis in an
rapid and efficient communication across the net- attempt to bring ‘Instant Bitcoin’ payment con-
work of double spends and bad actors; engage firmation by substantially lowering confirmation
330
in a cooperative measure between peers which duration. The use of the Lightning Network and
332
checks both the blockchain and their own mem- payment/state channels can remove some of the
ory pool of transactions to scan for attempts at traditional problems with double-spend attacks.
double spending. The GAP600 Platform claims
331

Box 5:
Use of DAI Stablecoin for aid distribution to citizens of Vanuatu�
324
Oxfam has been using the MakerDAO DAI stablecoin distributed for aid distribution to citizens of
Vanuatu in a program called UnBlocked Cash, supported by the Australian government. Some 200
residents of the Vanuatu villages of Pango and Mele Maat issued tap-and-pay cards loaded with rough-
ly approximately USD 50 worth of DAI, which can be converted to local fiat currency. 325
Security Aspects: Due to privacy concerns, an individual’s purchases were not tracked, but recorded
the general category of purchases. The platform is able to continue operating offline by cryptograph-
ically recording recipient’s balances on tap-to-pay smart cards, which are then synced at a later point.
The platform also does not require recipients to have access to a mobile phone and does not require
users to undergo KYC checks.

Security Aspects of Distributed Ledger Technologies 43