We believe we have *THE* *solution that will realize the vision of the Kantara Initiative*: Ensure secure, identity-based, online interactions while preventing misuse of personal information so that networks will become privacy protecting and more natively trustworthy environments. We realize that is a bold statement. We humbly ask the members of the Kantara Initiative to review our approach: *Digital credentials on NFC enabled smart phones will soon transform the world of identity management.* *The Trust Nexus* is a startup company located in Austin, TX. We hold intellectual property rights that will enable us to build the infrastructure for secure identity in the digital age. *Whoever controls the infrastructure for secure identity will also play a leading role in the emerging world of m-Commerce.* The basic question is, how can trust be established in the digital age? If you and I have never met and I come to your website or place of business, how can you be confident that I am who I say that I am? *The Trust Nexus answers this basic question regarding the establishment of trust.* A key component of our infrastructure will be an easy to use *digital wallet* where credentials can be securely provisioned and transactions occur smoothly. This digital wallet will be the *cornerstone of NFC technologies on mobile devices* and provide the interface for identity, marketing and financial services. *Every aspect of digital life that depends on identity and transactions will flow through the digital wallet. * The digital wallet on NFC enabled smart phones will be one of *the most valuable assets in the digital age*. The digital wallet and supporting infrastructure will be based on industry standards that will *enable the mobile network operators (MNOs) to meter services that flow through their networks and participate in new marketing/advertising models.* The identity infrastructure we have designed will eliminate the possibility of identity theft for all participants, protect consumers and financial institutions from fraudulent transactions, greatly reduce cyber-crime and solve many of the systemic problems of the current Public Key Infrastructure system, especially the problems of certificate revocation lists (CRLs) and on-line status checking. Our solution is simple, practical and transparent to the consumer. Consumer acceptance will be rapid and widespread. Our solution secures identity, protects individual privacy and prevents the establishment of monolithic government control. Under our system, the user is always in control of his/her credentials. The essence of our approach is very different from the "Big Brother" approach recently announced by India. Rather than creating a centralized directory of private information, we will create a central repository containing a collection of institutional decisions which will establish an *Institutional Web of Trust*. Compared to a decentralized web of trust which creates a web of individuals with, "the expectation that anyone receiving [a list of signatures] will trust at least one or two of the signatures", we will create a system where *trusted institutions legitimize individual identity*. Additionally, the *Institutional Web of Trust* established by *The Trust Nexus* will have centralized controller processes that rely greatly on self-management and automation resulting in great efficiencies. Digital wallets on NFC enabled smart phones will enable users to secure their private keys and control/present their digital credentials. Because a user's identity will be authenticated by the processes of *The Trust Nexus* (not a trust authority) there is no need for a trust authority to issue and vouch for public/private keys for individual users. It is only necessary that the public key be registered and the private key be secured. Users can self-issue their keys. *The Trust Nexus* does not secure identity by, "making personal data harder to steal". Rather, identity is secured by self-managing logical inconsistencies within the system, resolving identity conflicts and preventing fraudulent transactions. As Bruce Schneier, author and security guru, pointed out, "Proposed [identity theft] fixes tend to concentrate on the first issue--making personal data harder to steal--whereas the real problem is the second [preventing fraudulent transactions]. If we're ever going to manage the risks and effects of electronic impersonation [identity theft], *we must concentrate on preventing and detecting fraudulent transactions*." [Solving Identity Theft] In essence, there are a *limited number of institutions worldwide* (measured in thousands) that truly matter when it comes to legitimizing identity. Digital wallets on smart phones will enable the efficient association of unique public/private keys to a specific legal identity (legal name and legal address). If there is a non-unique association, an inconsistency arises in the system. If the association is unique and verified by one or more legitimate institutions an individual's identity is secure (as long as the private key which he/she controls is secure). In the process of adding a credential to a user's digital wallet, the provisioning institution (government agency, bank, university, etc.) will calculate a secure hash value (numerical representation) of the credential combined with information from the user's *primary credential* (legal identity). This hash value will be encrypted with the user's private key and then encrypted again with the provisioning institution's private key; this encrypted hash value will then be stored in *The Trust Nexus Repository* representing *an institutional validation of the user's identity.* This dual encryption establishes that the credential was associated with the user during the provisioning process rather than simply asserting the association by a reference from the repository. Also, There is no need to store any specific information (account number, balance, etc.) about user's account. The user is in complete control of the information he/she presents and his/her privacy is maintained. When a user presents a credential from his/her digital wallet a transaction ID will be sent from the authenticating system to the user's digital wallet, be encrypted with the user's private key and sent back to the authenticating system. The user can be authenticated by decrypting the transaction ID with the user's public key from *The Trust Nexus Repository*. The credential can be authenticated by calculating the hash value of the credential and then decrypting the hash value stored in *The Trust Nexus Repository* with the institution's public key and the user's public key. In a variation of this process the provisioning institution does not store the encrypted hash value in *The Trust Nexus Repository*; rather, the provisioning institution itself maintains a repository and a reference to the repository is authenticated by an entry contained within *The Trust Nexus Repository* (through the institution's primary credential). In this way an institution could *federate the identity* of it's users (or a subset of its users) simply by adding (or modifying) a credential to each of it's user's digital wallets and creating an institutional reference within *The Trust Nexus Repository*. As part of the federation process, cooperating institutions will most likely create standard authorization levels for various services and provision these levels as part of a user's credential. For example, a coalition of universities may have authorization levels for library services that will enable users to access any library within the coalition; government organizations may provision security levels within a user's credential that enable inter-agency access to resources; etc. There is significant debate regarding the effectiveness of biometrics in identity management. When a user is not present (authenticating over a network) there are fatal problems with biometric authentication. Most significantly, "The main security problem with biometrics is the inability to create a new secret. If you allow your fingerprint to be digitized and sent across a network or scanned by a compromised scanner, it can be stolen. Then someone has a digital copy of your fingerprint." Even if a method of biometric identification proved to be completely reliable, security issues would still remain. There would be opportunities to steal someone's biometric signature and forge their identity credentials, especially if there was a massive store of private personal data; one successful attack could essentially render the entire system ineffective. When a user is present bio-metric data can be an effective authenticator. It will be possible to *store bio-metric data within a user's credential* (not within a central repository) when the credential is created by the provisioning institution. When a user presents the credential verifying the biometric data in the credential against the individual in real time will provide enhanced security along with verifying the encrypted transaction code against the user's public key in *The Trust Nexus Repository* and verifying the encrypted hash code of the credential against *The Trust Nexus Repository*. While there are many types of biometric identifiers, one of the simplest and most usable is a photograph of the human face verified by a human being. Any credential in a user's digital wallet that includes a photograph (driver's license, passport, bank debit card, etc.) will be highly reliable when a user presents the credential in person. Why would a major institution (bank, university, corporation, government agency, etc.) utilize *The Trust Nexus Repository* instead of its own internal system? When there is no need for an external third party to rely on a user's credential an institution may very well utilize its own internal repository. In this same case, smaller institutions, for reasons of convenience and cost, might still utilize *The Trust Nexus Repository*. Whenever a third party (a party other than the provisioning institution) must relay on a user's credential, the key services *The Trust Nexus Repository* provides are assurance that the user is unique and trustworthy, assurance that the provisioning institution is unique and trustworthy and assurance that the credential is trustworthy. Also, *The Trust Nexus Repository* creates a "*data synergy effect*" which establishes an *Institutional Web of Trust* (when multiple institutions validate a unique user's identity the identity becomes more secure and trustworthy). If a unique user has digital credentials for a state driver's license, a passport, a bank debit card, a university ID, insurance cards, credit cards, etc., all independently validated by trustworthy institutions, that user's identity is secure and highly trustworthy. Similar to credit ratings, both individuals and institutions will have "*trust ratings*" within *The Trust Nexus Repository*. A centralized notification service will also be provided when credentials are lost or stolen. The uniqueness test for legal identities within *The Trust Nexus Repository* helps to secure identity and prevent identity theft. If there is a non-unique association, an inconsistency arises in the system. Also, easy access for online status checking establishes the currency of a user's credentials in case the user's digital wallet is lost or stolen. And most importantly, *The Trust Nexus* creates a "*data synergy effect*" which establishes an *Institutional Web of Trust*. Additionally, our system provides *the "Holy Grail" for single sign on*. All computers will soon have an interface (USB plugin or internal card) that will enable NFC interactions with mobile devices. The digital wallet on a user's cell phone will be provisioned with credentials containing specified authorizations different systems and services. Rather than logging into a directory or utilizing a complex federated identity process, a user will log onto his/her cell phone with a PIN and a voice authentication signature. The user (or the authenticating system) will then select the appropriate credential for the specified system or service with no need to enter another user name or password (the user's private key will be used to encrypt a transaction ID). This approach also *solves the "Keys to the Kingdom" problem* where a single sign on to a directory service opens access to all the user's systems and services. We are confident we have a transforming technology and a clear vision of the future. *No one has found a conceptual flaw in the system.* Existing providers of identity management services should not see *The Trust Nexus* as a competitor; rather, they should see us as an infrastructure provider (similar to the electric power grid that has hundreds of energy providers). Best regards, Michael Duffy CEO / CTO ~ The Trust Nexus http://www.thetrustnexus.com