For compliance-minded crypto startups, there is a lot of data to cross-scrutinize if they are going to bridge Web 2 identity and data to Web 3, and doing this without sacrificing user control is a key step for A business development prospect with rigid needs. Many companies are currently trying to solve this problem.

December 10, Data Identity StartupsBurrataAnnounced the completion of a $7.75 million seed round of financing, with Stripe, Variant, IDEO CoLab, Slow, Baller, Stratos and a large number of crypto industry participants participating.

Burrata's integration layer is designed to help crypto companies bridge consumer identities and data from siled Web 2 systems to Web 3 systems. This open and scalable integration layer will help standardize and process the influx of Web 2 data on-chain. This integration layer is critical for uploading billions of user data and configuring it on-chain.

Ian Place, co-founder of Burrata and Chainalysis expert, said,Personally identifiable information (PII) is critical, and it must first address compliance concerns. Place said that this is not an easy task, and some small encryption projects lack the cash and manpower to cope with the compliance costs that established companies can easily bear. The ideal of decentralization further complicates matters, DEXs and dApps are filled with personal data, and whenever money is involved on the web, censorship of PII is inevitable. Burrata aims to provide this solution for crypto startups.

Co-founder Osama Khan previously worked at customer data platform Segment. Identity, credit scoring and social network reputation metrics "will help make the Web 3 market more efficient," he said. Burrata's solution is to issue "digital identity tokens" made up of these data points. Once set up, it attaches to users' wallets, allowing them to pass KYC without re-authentication or submitting data. Khan said Burrata created the necessary tools and infrastructure for the project to check all compliance frameworks without using a PII server. They can reject problematic users while avoiding centralized record keeping. Likewise, users can "withdraw" their tokens at any time. "It's 100 percent the consumer's own data," Khan said.

Burrata is currently owned by investors and founders, and decentralization will be considered in the future. Khan said that using Burrata tokens too early could hinder the development of the project. Currently users can access the service without paying, so issuing tokens is not particularly necessary. He added, “Once we figure out some of the core technologies, we will definitely look at gradually decentralizing.”

Some Burrata-integrated services will go live early next year, the developers said.

The management representative, Jesse Walden of Variant, said that "identity" processing is a key factor in the growth of DeFi. Compliant handling of identity issues can lead to more institutional participation, but also unlocks user democratic governance of the platform network, which helps ensure fairness and neutrality as the network scales. The business needs and prospects for Web 3 identity compliance are huge.