Artificial intelligence (AI) and blockchain technology are two big trends that are already impacting the way we live and work. But both bring their own challenges, particularly in terms of security, trust, and identity. That’s where tech start-up TransCrypts comes in. It operates a verification platform that puts users in charge of their own data, and it could change the way all kinds of background and identity checks work.
Pantera Capital just led a $15 million round of seed funding for TransCrypts, gaining support from Lightspeed Faction, Alpha Edison, Motley Fool Ventures, California Innovation Fund, Mark Cuban, Techstars, Alumni Ventures, and others.
The digital identity field is worth following, as this type of security is a growing concern for many people. Plus, tracking early-stage companies can be a good way to gain more insights about their fundamentals long before they decide to go public. Here are three reasons to keep privately held TransCrypts on your radar.
1. Identity theft is on the rise
The Motley Fool’s research into identity theft shows that 2025 could see a record number of cases. Indeed, per Javelin Strategy, U.S. consumers lost over $27 billion to identity theft last year — up 19% from the year before. Unfortunately, technological change has outpaced security improvements, leaving new vulnerabilities for criminals to exploit.
Moreover, AI tools enable ever more sophisticated phishing attacks. The ability to rapidly produce deepfake content allows fraudsters to easily impersonate victims’ family members, business employees, or customer service operators from banks or brokerages. Traditional online security methods aren’t necessarily enough anymore. TransCrypts uses cryptographic verification, combined with the security of the blockchain, to ensure that your identity can’t be manipulated or forged.
2. Blockchains offer real-time, user-controlled verification
The power of blockchain-based identity verification is that it shifts control of personal data from big corporations to individuals. The idea is central to Web3, which many see as the next evolution of the internet. With online fraud on the up and AI supercharging criminals’ abilities to imitate us online, the TransCrypts team believes that the immutable ledgers created by blockchains are part of the answer.
