Blockchain startups are booming, digital identity security company Civic receives $2.75 million in investment

Bitcoin Foundation board member Vinny Lingham has announced his resignation as CEO of gift card service Gyft to embark on a new business venture.

Civic, based in Palo Alto, California, has raised $2.75 million in seed funding led by Social Leverage Ventures, with participation from a number of VC firms active in the bitcoin and blockchain space, including Pantera Capital, Blockchain Capital and Digital Currency Group.

The digital identity security startup is focusing on online security solutions for U.S. Social Security numbers, according to Lingham, who expects the app to be available this spring.

Lingham told reporters:

"Your identity is out there, whether you like it or not. There are so many vulnerabilities out there, on the dark web, that bad guys can use your information to create fake accounts, apply for credit cards and take out loans, which is a huge problem and it's ridiculous. Civic's goal is to keep your Social Security number safe."

A longtime advocate for the Bitcoin and blockchain industries, Lingham pioneered the integration of Bitcoin payments into Gyft in 2013 and regularly speaks at industry events.

Lingham also encouraged Gyft to try to build gift card technology through blockchain, so he will continue to be involved in the project as First Data acquires the company.

Lingham said that while there is no direct connection between Civic and blockchain technology at this time, he still sees opportunities for the startup to take advantage of the emerging technology.

“Blockchain will play a role in ensuring data security. Blockchain is probably the most secure place to store information today,” Lingham said.

However, he also reminded that it is most important for companies to provide consumers with better control over their personal information while providing a good user experience.

Some things about the service

Lingham explained:

"You install an app on your phone and when someone tries to use your SSN through your network, you get an alert. No one can open an account using your identity."

Lingham said the service is an innovation on existing banking security models, as Civic can detect the use of Social Security numbers before they are used to establish new accounts.

"We use all the best practices in the industry, from high-level defenses to cryptography," he said. "In theory, you could put your Social Security number on your business card and nobody else could use it."

To help scale the business, Lingham said Civic will seek partnerships with financial institutions. In addition, Howard Lindzon, founding partner of Social Leverage, will join Civic’s board of directors.

Original article: http://www.coindesk.com/gyft-founder-raises-2-75-million-for-id-startup-civic/
By Pete Rizzo
Compilation: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/blockchain-capital-13-million)