Self-hosted Wallet Explained: Your Guide to Ownership Proofs
What Is a Wallet Ownership Proof?
A wallet ownership proof can have different formats, depending on the method used, but it will achieve one goal: prove to a virtual asset service provider (VASP) who is the owner of an address. Usually, this is asked from customers in countries where the regulation on crypto assets requires identification of self-hosted (also known as non-custodial, private) wallets.
How Is AOPP 100% Accurate and Secure?
Address Ownership Proof Protocol (AOPP) relies on a cryptographically signed message from the wallet owner. The wallet owner requests the message, receives it on their wallet, and confirms their ownership. There is no need to depend on blockchain analytics, and there is no chance of forged screenshots.
How Does AOPP Differ from Other Ownership Proof Methods?
Address Ownership Proof Protocol (AOPP) has improved user experience and security. Other methods used for ownership proof heavily burden the user with cumbersome processes and communication via the customer management team. You can find out how AOPP is a better option for your business and your customers in this article.
When and Why Do I Need Wallet Ownership Proofs?
You may need to prove you own your self-hosted wallet to be able to transact with crypto-regulated entities like virtual asset service providers (VASPs). In some countries, VASPs must know who a self-hosted wallet's owner is before allowing a deposit from or withdrawal to such an address. This is part of anti-money laundering efforts.