Three Protocol announced its development of decentralized digital IDs (ZKi3s) as an alternative to centralized digital IDs and KYC processes. Using zero-knowledge proofs (ZKP) and blockchain technology, these IDs are designed to ensure privacy and security without requiring national identification or biometric details.
Three Protocol is a project incubated by Tectum Labs, a program designed to support and nurture early-stage blockchain startups and entrepreneurs.
The project aims to facilitate online commerce for unbanked and debanked communities by eliminating KYC requirements. Three Protocol also incorporates AI to update products and services in real-time, and introduces DAIOs (“Decentralized Artificial Intelligence Organizations”) to enhance decision-making and user engagement within decentralized environments.
The system is designed to let users mint their own ZKi3s without providing national ID or biometric details. These IDs are pseudonymized blockchain entries that show the owner’s online relationship history and reputation.
ZKi3s use ZK-Stark proofs to ensure that the user’s transactions remain private, with the identity information never being visible on the blockchain. ZK-Stark proofs (Zero-Knowledge Scalable Transparent Argument of Knowledge) are cryptographic protocols that enable one party to prove to another that they know a value without revealing any information about the value itself. They are designed to be secure, transparent, and scalable, making them ideal for applications that require privacy and security, such as decentralized digital identities.
When a user wants to verify their identity for a transaction or interaction, they use their ZKi3 to generate a ZK-Stark proof, offering cryptographic proof that confirms their identity without revealing any personal information. In other words, the ZKi3 is essentially tied to a user’s digital identity without including other identifiable information. It functions as a pseudonymized digital ID that records the user’s online relationship history and reputation on the blockchain.
Three Protocol is making the algorithmic formulas for ZKi3s publicly available, allowing any digital platform or online marketplace to integrate ZKi3s via a permissionless process. This should help developers and organizations to adopt and customize the technology to fit their specific needs.
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July 18, 2024 – by Ali Nassar-Smith and Alex Perala
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