Train is going to make "Crypto Valley" for every citizen

Zug, now Crypto Valley? In recent months, the city of Zug has repeatedly made headlines in the digitalization scene. New technologies are not only discussed, but also tested and used. For example, since 1 July 2016, Zug residents have been able to pay with Bitcoins at the counter of the residents' registration office, not just with Swiss francs.

Since July 2017, Zug now offers a blockchain identity for all residents. This is a blockchain-based digital identity solution developed in cooperation with the Institute of Financial Services Zug IFZ of the Lucerne University of Applied Sciences and Arts and the technology companies Consensys-uPort (Zug) and TI&M (Zurich). The app will provide all residents of Zug with a digital identity from September 2017.

Many applications in both the public and private sectors show gaps when it comes to secure password identification. Cetralized solutions such as "SuisseID" projects have been the focus of the Swiss government until now. Nevertheless, these solutions have been insufficient until now.

A safe address for all

Based on the Ethereum blockchain, the largest blockchain 2.0, a person's identity is captured by a newly developed app. This app is linked to a crypto address and verified. Specifically, Zug residents are to register themselves through the app. This E-ID, which was developed in Zug, is not read in central Switzerland, but rather "stored" in the blockchain in a tamper-proof manner. The city itself merely checks and confirms a person's identity after registration.

The pioneering project with the digital identity based on blockchain is a further step and a statement for the global digital community. The Mayor of Zug, Dolfi Müller, on this project:

"We are creating a single electronic identity - a kind of digital passport - for all kinds of applications." In a first phase, probably in spring 2018, this technology will also be used to push eVote, electronic voting, in the city of Zug. Zug envisages a whole bundle of digital services for the e-ID:

eVoting, paperless signing of documents, even centralized bundling of parking fines, to go into detail.

International cooperation

Mathias Bucher, lecturer at IFZ, explains from his point of view the motives for the participation of IFZ of the Lucerne University of Applied Sciences and Arts in the joint project:

"Today, our digital identity still lies with large search engines and social networks that profit from it. However, a self-managed, secure and authenticated identity is indispensable for the functioning of an increasingly digital society. It speaks for Crypto Valley Zug that we can pragmatically realize such an identity in cooperation between research, industry and authorities."

Rouven Heck, Product Lead Digital Identity at Consensys, doubles down and underlines the advantages of uPort as a technological solution for the identity project of the city of Zug:

"By registering on the public, global Ethereum blockchain, the City of Zug offers its residents innovative access to both local and international services. This solution adds tremendous value in increased security by keeping private data under the complete control of individuals while enabling a much smoother use of digital services." (Source: www.iso-20022.ch)

The city of Zug plans to gain further experience with blockchain applications by September 2017 and is expected to hold a consultative vote via e-voting in spring 2018 to ask the Zug population's opinion on the project. What may already work for the city of Zug as of September 2017 may also benefit other cities and regions.

Cornerstones of the Digital Identity

For years, digital identity eked out a shadowy existence without any concrete action or projects. Apart from SuisseID, which was put on the tarmac at considerable expense without ever really taking off, not much happened. Since 2016, influential groups around banks, the post office and transport companies have been focusing on concrete projects in the direction of blockchain technology. The official view of things comes with the statement of the Federal Council, which wants to create the framework for the new realities with its preliminary draft on electronic ID.

• With a division of tasks between the state and the economy, the issuing and handling of the digital ID is to be entrusted to private service providers. The draft will be submitted for consultation on 22 February 2017.
• The canton of Zurich has formulated a counter-proposal that would like to tie the sovereignty over digital identity to the federal government, cantons and municipalities; only the necessary software is to be procured from third-party providers.
• SwissSign, the joint venture between Swiss Post and SBB, is launching SwissID, which is to be introduced gradually from autumn 2017.
• The eID+ (e-Government as a Service) developed by Procivis will be presented as a beta version of an integrated identity and service platform and will go live as early as May 2017.
• The city of Zug presents the blockchain-based Digital Identity, developed in cooperation with the Institute of Financial Services Zug IFZ of the Lucerne University of Applied Sciences and Arts and the technology companies Consensys-uPort (Zug) and TI&M (Zurich). The app will provide all residents of Zug with a digital identity from September 2017.

Further details on the E-ID can be found at www.iso-20022.ch and more generally on the site of the city of Zug under www.stadtzug.ch