• Cryptoasset Report
  • November 21, 2018

Civic is a decentralized identity management solution using the Rootstock blockchain with user incentivized sharing and validation of identity information.


Civic is a decentralized identity management solution and wallet service working to make identity information portable across platforms and improve the user experience for those undergoing KYC procedures while simultaneously integrating these services into a cryptocurrency wallet (Civic Wallet). User’s data is stored on their own device, rather than on the Civic platform, which helps preserve privacy, security, and autonomy. Companies leveraging Civic can offer their customers a smooth UX when signing up or logging into a portal through an account associated with the user’s Civic profile. The Civic app facilitates multi-factor authentication and obviates the need for multiple, generally weak, passwords across platforms. Since user data is easily portable between applications, once a user completes KYC procedures through Civic, any future procedures with similar requirements will not require duplicate efforts. Civic raised $33 million in its 2017 token generation event and previously secured backing from a number of reputable venture capital firms, including Pantera and Digital Currency Group.

Protocol Details

The Civic team’s game-theoretic approach to the incentive structure includes the starting assumption that all users are trying to cheat requesters and validators. This maps cleanly to current real-world identity verifications, where an individual is presumed not to have the necessary credentials until proven otherwise. Validators must stake CVC tokens to participate in the marketplace and provide attestations to requesters. After receiving an attestation, the requester can either accept it or flag it as erroneous. Civic believes there will exist, in circumstances where both validators correctly assert identity claims’ legitimacy and requestors do not miss-flag these assertions, a state where neither actor stands to gain financially by changing their strategy (in other words, a Nash Equilibrium is achieved).

Civic offers a reward to requestors for flagging incorrect attestations (even if a requester has had previous flags rejected) in proportion to the product of a weight parameter (configurable based on the behavior of the system and it’s users) and the ratio of accepted flags to total flagged items for an individual requestor. The amount a validator is required to stake in order to attest to identity claims varies depending on the number of identity claims attested to. A logarithmic relation between the minimum stake and the number of ID’s validated describes the situation in which validators can be penalized in proportion to the influence their attestations make (as measured by the number of attestations). This means that the difference in stake required between 9,000 and 10,000 ID attestations is smaller than the difference in stake required between 1 and 1,001 attestations. Civic decided to split itself from its underlying technology platform,, with the latter becoming a distinct non-profit entity. Despite this, Civic will continue to use the platform but it is expected that other entities will begin to leverage’s solution.

Over the past year, Civic has pivoted more towards a generalized wallet service that integrates Civic’s identity management solution. The project has stated that it believes that payment and identity services complement each other and is in the process of bringing Civic wallet out of beta and marketing it to the wider public.

Asset Details

Validators must stake CVC tokens to participate, allowing the requestors to hold validators accountable for inaccuracies or untruthfulness by flagging suspected erroneous validations, or lack thereof. CVC tokens enable participants to contribute to the network’s content. Validators will receive CVC when users of the Civic network utilize validators’ attestations. Users can also earn CVCs by contributing their data to the platform, where the data is stored securely and privately. CVC also facilitates feature access via identity relevant products and services, such as identity insurance. The CVC total supply is 1 billion, of which 33% were sold in the TGE, 33% to be distributed as part of a go-to-market strategy (to incentivize adoption) and 33% will remain in the hands of the Civic team (+ 1% to cover token sale costs).