Sovra
@sovraio is one of the lowkey projects we are working on with
@fernandezdiego that most people do not understand yet, and it is growing at an incredible speed. I can't share concrete numbers yet but we already have millions of users and Sovra just closed another big partnership that will complement it's portfolio of clients. I will try to explain here what Sovra does and why I think in the next year or two it will become a indisputable giant.
It is one of the highest conviction plays we have at
@ergodicgroup. We are investors and partners in Sovra, and we are working on it nonstop. We will be announcing major developments around it soon.
The reason Sovra is not well understood by the crypto community is simple. Most of crypto is still driven by short term incentives and inward looking products. It understands the tools it personally uses, but struggles to engage with governments, regulators, and large institutions. This is exactly why I advised Diego not to raise money from crypto VCs. They would not understand what he was building, not because it is too complex, but because it does not fit the dominant crypto mental models. Sovra is a long term infrastructure play, and that directly clashes with how much of the space thinks and allocates capital.
Diego followed that advice, and the results have been remarkable. In less than twelve months, I have seen him and his team close agreements with multiple countries, onboarding tens of millions of users onto Ethereum. The pace has been so fast that the main bottleneck today is the technical execution capacity of
@class_lambda.
So what is Sovra actually doing.
Sovra is solving a very concrete problem, but in a way that is fundamentally different from both web2 and web3 approaches. Cryptocurrencies made it possible to create native digital money for the internet. Sovra is doing something analogous for identity, while fully understanding that identity is ultimately rooted in local governments and state authority.
Today, KYC is structurally broken. States issue physical identity documents and sometimes a basic digital representation of them, but they do not provide robust protocols that companies can directly integrate with. There is no standard way for governments to issue, update, revoke, or extend digital credentials that private companies can reliably consume. As a result, companies are forced to rebuild identity verification themselves, leading to duplicated processes, weak security, high costs, and poor user experiences.
Sovra approaches identity by working with governments rather than trying to bypass them. It treats states as the legitimate issuers of identity, while giving them the tooling to create digital native credentials that can be securely consumed by companies and protocols. On top of that, Sovra provides a protocol that allows companies, institutions, and organizations such as clubs or associations to issue interoperable and composable digital credentials. This creates a missing bridge between public institutions and modern digital infrastructure, something that simply does not exist today at scale.
From our point of view, we are aiming for what Worldcoin is trying to achieve, but in a way that aligns both with cypherpunk values and with the interests of governments that want to provide better digital services to their citizens. Worldcoin
@worldcoinfnd takes a very different approach. It tries to solve identity without governments, relying on a private technical system and strong economic incentives. While technically interesting, this inevitably conflicts with state authority, since it challenges who gets to define and issue identity.
Worldcoin has also received significant criticism. From a cypherpunk perspective, it depends on centralized infrastructure and on the collection of extremely sensitive biometric data, which could be abused in the future by bad actors. From a government perspective, it introduces a parallel identity system that sits outside existing institutional frameworks. This is very new technology, and if it fails, the consequences could be severe. Ironically, Worldcoin managed to do something unusual by unifying criticism from both governments and cypherpunks, groups that almost never agree.
Sovra is not trying to replace governments. It is trying to give them modern, interoperable infrastructure. That is why it is hard to see if you only look at crypto through a degen lens, and also why, once it clicks, the scale of the opportunity becomes obvious. Sovra revenue is growing very fast because it is solving a real structural problem that governments and companies already have, rather than inventing a new one.
On a more personal note, one thing I often struggle with is that because I tend to have strong technical and roadmap opinions, many people find it difficult to engage with me consistently. Diego is different. He actively debates ideas, challenges assumptions, and genuinely takes feedback into account. I advised him not to raise capital and instead focus on revenue, and he executed on that advice. He built companies across Latin America that simplify government processes, and in doing so they are also enabling governments to digitize identity on top of zero knowledge and Ethereum. The revenue of the company is now growing very fast thanks to the number of users and countries they are working with.
I genuinely believe there is a very real chance that Sovra will reach the highest number of daily active users in the ecosystem, potentially dozens of millions, within months. Driver licenses, IDs and many other credentials and errands that people use on their daily life will be running on top of it. If we add wallets and a credit rating on top you have a verifiable open digital bank where everyone can build that is cheaper to operate and safer than web2 since you don't rely on trust for it to work.
Having composable official digital identities on top of Ethereum and
@ethrex_client enables an entirely new class of financial products, including undercollateralized lending. It also enables one click deployment of digital infrastructure for fintechs. This is ultimately what we are building with
@alignedlayer, which will power much of this stack.
Working on
@CresiumFintech, one of our fintech companies that is growing very fast in Argentina, made it obvious to me which parts of the system are fundamentally broken. KYC is one of them. If we can provide verifiable credentials with
@sovraio and verifiable payment rails with Ethereum, zero knowledge, and
@ethrex_client, we can build a system that scales extremely fast with very low marginal costs.
I cannot share more details for now. What I can say is that usage will be public and measurable. We will actively work with external parties such as
@l2beat to review the technical properties and architecture of
@ethrex_client, and with platforms like
@DefiLlama and
@Dune so the community can verify, analyze, and build on top of what we are creating.
I had to write all this to explain that Proof of Knowledge, or POK tech, is going to start operating on top of
@sovraio and
@ethrex_client. POK enables universities and institutions to create digital diplomas, course certificates, microcredentials, and professional badges as NFT based credentials. These credentials are tamper proof, instantly verifiable, and comply with international standards such as Open Badge 3.0 and the European Learning Model, which makes them useful across regions and systems.
POK is operating in nineteen countries and has more than eleven hundred institutions using it daily. More than one million credentials have already been created on top of it. Another important point is that its founder, Guido Grinbaum, is a multi decade successful entrepreneur. He built DeRemate, a massive company that was later acquired by Mercado Libre. It is not surprising to me that Diego and Guido are working together, and that all of this will be powered by the zero knowledge and Ethereum infrastructure we are building.