(Reuters) - Humanity Protocol has secured a fully diluted valuation of $1.1 billion after raising $20 million in a funding round co-led by Pantera Capital and Jump Crypto, the identity verification blockchain firm said on Monday.

The company is building a system that will use palm scans to verify that online accounts belong to real people. It plans to use the funds to launch its product more widely in the next few months.

"The protocol allows people to prove they are human without revealing personal details. This helps solve problems like bots, fake accounts and online fraud," founder Terence Kwok told Reuters.

A fully diluted valuation refers to the total value of a company if all potential shares and options are issued.

Companies specializing in digital identity verification are expected to gain traction as the rise of artificial intelligence sparks concerns about deepfakes.

The growing threat of cyber fraud has also driven demand for more efficient tools, attracting increased investor interest in the sector.

Blockchain startups are turning to biometrics to capitalize on the demand. World Network, a company co-founded by OpenAI CEO Sam Altman, allows users to create a verified ID that can be generated with images of their face and eyes.

Humanity Protocol is also close to launching its own crypto token, "with the final preparations underway to ensure a smooth launch", Kwok said.

Startups focused on crypto and blockchain are anticipating a resurgence in popularity after the return of President Donald Trump to the White House. Trump has supported the industry and pledged to cut burdensome regulation.

"I'm excited to see the new innovations that will be better supported under this administration. A pro-business environment could accelerate the development of blockchain-based solutions and attract investment," Kwok added.