CVC is the native digital token of Civic, a blockchain platform founded in 2015. Civic is a personal identity verification service provider that uses modern cryptography, blockchain technology, and smart contracts to offer secure, on-demand, and cost-effective access to identity verification services. CVC is an ERC20 standard token used to power Civic's identity verification protocol. It serves as a utility within the Civic ecosystem, facilitating payments for smart contract commands and maintaining Civic's blockchain. The token is central to the functioning of Civic's identity verification processes and is used for settling transactions within the platform.

How does $CVC work?

Civic's identity verification process provides users with exclusive access and control over their personal identity information. The process involves the Identity verification ecosystem, where personally identifiable information (PII) is encrypted before being hashed on the blockchain. Users can reuse their verified identities across various platforms without the need for constant re-verification. The CVC token is used within this ecosystem to settle transactions.

The Civic Ecosystem comprises three main parties: users, validators, and requester/service providers. Validators verify identities, both on the blockchain and for service providers, and the smart contracts within the ecosystem govern interactions among these parties. Validators cross-check the integrity of information by referencing public records, financial records, etc. The marketplace within the Civic ecosystem allows service providers to buy access or sell rights to verified identity information with the user's consent, and this process is facilitated by the use of CVC tokens.

Civic's Token Behavior Model regulates the behavior of ecosystem participants. Validators and requesters are required to hold a minimum amount of CVC tokens, ensuring a secure and fair marketplace. The token plays a vital role in incentivizing participation and transactions within the Civic ecosystem.

$CVC tokenomics and risks

The total token supply is set at 1 billion, and the crowd sale in June 2017 capped at 330 million tokens, raising $33 million at a price of $0.10 per token. The remaining tokens were distributed to companies and users to foster network growth, with one-third held in the company's inventory and vested yearly over three years. The Civic token behavior model mandates participants to hold a minimum amount of CVC tokens to engage in the ecosystem, contributing to network integrity. Additionally, CVC serves as a means of settlement in identity-related transactions within the Civic ecosystem.

However, certain risks are associated with the CVC token and the Civic ecosystem. Civic's functionality relies on the active involvement of users, validators, and requester/service providers. If any of these parties encounter challenges in participation, the overall ecosystem could face dysfunction. There is a concern about potential misuse by validators tasked with verifying Personally Identifiable Information (PII), particularly if traditional identity authentication costs surpass CVC token rewards. The effectiveness of the token as an incentive for network scaling may be influenced by market dynamics, and sustaining consistent participation poses a challenge. Civic faces competition from other blockchain identity verification projects like SelfKey and THEKEY, potentially impacting its market position. Additionally, security concerns loom over the potential for breaches or hacking incidents, considering the sensitive nature of identity-related information. Addressing and mitigating these risks is crucial for ensuring the resilience and success of Civic and its CVC token in the identity verification space.