NFT-based digital identity – IT management online portal

Digitization continues to progress. Non-fungible tokens (NFTs) have been a major step in development and offer many possibilities. One of them, which has not really been fully exploited and which also brings real added value compared to pure NFT images, is the digital mapping of one’s own identity. With NFT-based digital identity, your own identity is digitally stored and encrypted in an NFT.

This not only allows one-click verification on a wide variety of websites, but also external third parties can see if the personal data is genuine. CPI Technologies is developing exactly this technology with their cooperation product MaxTrax. How exactly does NFT-based digital identity work? And what opportunities does this bring us for the future?

How does NFT-based digital identity work?

When you use the digital identity for the first time, you create your own NFT. The key word for this is Soulbound Token. This means that each person can own exactly one such NFT. After all, you only have one valid copy of your ID card. Thus, this Soulbound NFT digitally reflects your own identity. A Soulbound NFT is a special type of NFT that, unlike normal NFTs, cannot be transferred.

A wide variety of verifications can then be stored in the developed NFT. For example, on the Internet, you must always prove that you own the e-mail address you provided. For verification purposes, an e-mail is then usually sent to the specified address, which contains a link that you must click on. This confirms that the email address is yours. Another option is to text a code, which in turn must be entered to confirm your own phone number. These measurements can be used to prove your identity and data ownership. However, so that these numerous steps are no longer necessary, the digital identity is developed on an NFT basis. With this technology, verification only needs to take place once. Provided cryptographic proofs and verified data, such as email address or mobile phone number, are stored in encrypted form on the NFT.

Quick verification possible

Only you can access and view the data. They can only be decrypted with a private key. However, other people can also verify the authenticity of emails and the like via their own NFT, since the checksums are public on the blockchain. However, this only works if the person has already been given an email address or mobile number. The NFT then only serves to confirm and verify the accuracy of the data already known. However, looking at other people’s NFTs does not reveal any other data. There are verification providers like IDnow or the Postident procedure for verifying personal data. They verify the authenticity of identity documents and confirm their own identity. This is exactly what can now be stored digitally on a non-fungible token.

The biggest advantage of NFT-based digital identity is that you only have to perform this verification once. After that, you can identify yourself to all kinds of service providers, companies, and websites with just one click. For example, it would even be possible to open a new bank account with just one click thanks to NFT. All required data must have already been verified by a reputable provider. The numerous verification processes no longer have to take place with an NFT-based digital identity. Of course, verifications can also have an expiration date.

Future Possibilities of Digital Identity

The technology is not only useful for storing data from ID cards, email addresses, mobile phone numbers, etc. If you think further, former employers could also issue digital job references, which can then be saved to the NFT. You can then be seen quickly and easily by other potential employers. It is just as conceivable that final certificates from universities or other educational institutions are stored there.


The technical possibilities of Web3.0 and blockchain technologies are far from exhausted. They will make a lot of things easier for us and also eliminate some intermediaries. In the long term, there is still a lot to develop in terms of NFT-based digital identity. In the short term, it is suitable for quick and easy verification of oneself and personal data. Many verification steps are no longer necessary. With little effort, your own identity can be confirmed online with the digital identity on an NFT basis.

The developers of the NFT-based digital identity “CPI Technologies” are looking for more cooperation partners for their MaxTrax project. This would give new technologies the opportunity to develop rapidly and make our lives easier.

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