Blockchain-based ID solutions company ShoCard secures $4m in funding

23 Aug 201765 Shares

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Image: whiteMocca/Shutterstock

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

As blockchain technology gains momentum, ShoCard enters the enterprise market.

Palo Alto-based identity management firm ShoCard has secured $4m in funding, which will aid the roll-out of its enterprise solution, ShoBadge.

The new offering aims to eliminate the need for usernames and passwords within a business, instead using a blockchain-based digital identity verification and authentication process.

ShoCard originally made its mark on the consumer identity side, with clients – including banks, airlines and companies – requiring user logins and passwords for apps. It aims to use the newly acquired funding to offer efficiency and security in the working environment.

‘Without usernames and passwords, identity management and security is much more simple and cost-effective’
– TAE HEA NAHM

CEO and founder Armin Ebrahami said: “Eliminating usernames and passwords at the enterprise level will close the security gap in organisations’ cyber defences. Large databases filled with this sensitive information will no longer be necessary, and weak passwords, easily exploited by hackers, will no longer exist.”

Ebrahami added that ShoBadge would use the same technology as ShoCard in terms of verification, enrolment and authentication tools, and described blockchain technology as “the next generation of identity management, offering CIOs and CISOs a consolidated approach and more secure identity management for their enterprise”.

Blockchain beyond cryptocurrency

Using blockchain technology means that identity management is controlled by the user and shared by the workplace. After employees choose to share their information with their employer, blockchain acts as a ledger to verify the information and ultimately grant access to authorised employees.

This investment round was led by Morado and AME Cloud Ventures, along with Storm Ventures, Danhua Capital and Correlation Ventures, among others.

Tae Hea Nahm, managing director at Storm Ventures, said: “Without usernames and passwords, identity management and security is much more simple and cost-effective.”

The hope is that ShoBadge will be used to secure entire business ecosystems, with the ability to include contractors, business partners and even customers. This implementation of blockchain is part of a trend that goes beyond merely bitcoin and cryptocurrency, into the realm of cybersecurity.

Ellen Tannam is a writer covering all manner of business and tech subjects

editorial@siliconrepublic.com