What is cheqd (CHEQ)?

Deep Dive

1. Purpose & Value Proposition

cheqd solves trust gaps in digital interactions through Verifiable Credentials (VCs) – cryptographically secure proofs of identity/attributes that users control. Unlike traditional systems, it enables:
- Monetizable Revocation: Issuers earn fees when verifiers check credential status (e.g., expired licenses), with 99% of transaction fees burned to manage token supply (cheqd Studio)
- AI Agent Trust: Assigns decentralized identifiers (DIDs) to AI systems to prevent impersonation, implemented in partnerships like ASI Alliance’s autonomous agent network (ASI Integration)

2. Technology Stack

Built on Cosmos SDK, cheqd supports:
- W3C-Compliant DIDs: On-chain identifiers for people/organizations/AI agents
- BBS+ Signatures: Zero-knowledge proofs enabling selective disclosure of credential details
- Trust Registries: Decentralized governance layers defining authorized credential issuers

The network uses a fee oracle to stabilize transaction costs in USD terms, a first for identity-focused chains (Fee Mechanism).

3. Token Utility

$CHEQ facilitates:
- Network Operations: Paying for DID creation/updates (1% of fees go to validators)
- Governance: Voting on credential standards and partnership approvals
- Incentive Alignment: Burning majority of verification fees to counter inflation

Conclusion

cheqd reimagines trust infrastructure by combining self-sovereign identity with sustainable economic models – could its approach to privatized, payment-gated credentials become the standard for Web3 and AI ecosystems?