Palau ID

Palau Digital Residency is a blockchain-based digital identity program launched in 2022 through a partnership between the Republic of Palau and Cryptic Labs. The program implements a Web3 identity protocol called Root Name System (RNS) to provide government-backed digital identification to global citizens.

The technical infrastructure combines physical and digital identity credentials through:

• A physical government-issued ID card
• An LDID (Legal Decentralized ID) implemented on multiple blockchains including Ethereum and Solana
• End-to-end encryption and Zero Knowledge Proofs for privacy protection
• Integration with the did:key method for cryptographic verification

Notable implementations and adoption include:

• Integration with major cryptocurrency exchanges for KYC verification

• Support for identity verification at hotels, airlines, and financial institutions

• Over 19,000 digital residencies issued since September 2023

• High-profile users including Vitalik Buterin who minted Voyager Pass #1430

The program operates under the Palau Digital Residency Act passed in December 2021, which enables digital services including legal name changes, banking, verification, mailing addresses and utility billing. While it provides identity verification capabilities, the digital residency does not confer citizenship rights or permanent residency status in Palau. The program represents one of the first implementations of sovereign-backed digital identity using blockchain technology.