Today, a growing number of companies are leveraging public blockchains to collect revenues or pay employees and suppliers, primarily due to the benefits of cost savings and increased efficiency, particularly in cross-border transactions. However, malicious actors often exploit these systems through phishing, impersonation, or address poisoning attacks, redirecting B2B or B2C payments to incorrect destinations. While pseudo-anonymous and irreversible payments are generally valued within the blockchain community, these characteristics can deter traditional businesses from adopting blockchain for daily operations due to the associated risks.
To overcome these barriers to the adoption of cryptocurrency in B2B and B2C payments, this project introduces an innovative framework that allows payers to verify the recipient’s real-world identity (RWI) during transactions by adding a layer of identity validation through smart contracts. The platform prototype, developed on the XRPL-EVM sidechain, integrates technologies such as Merkle Trees, organization-wide and government-issued public key infrastructure (PKI), and third-party ID verifiers to securely bind or verify an identity.
This decentralized and automated framework demonstrates how businesses can safely incorporate blockchain technology into their everyday financial activities, providing a secure solution that addresses common concerns and facilitates wider adoption.