What is Self-Sovereign Identity (SSI)?
Self-sovereign identity, often referred to as SSI, is a paradigm that empowers individuals to own, control, and share their personal data as they see fit. It is built on principles of security, privacy, and user-centricity, ensuring that individuals are the custodians of their own digital identities.
What is Zero-Knowledge (ZK) Technology?
Zero-knowledge technology, often abbreviated as ZK, is a cryptographic approach that allows parties to prove the validity of a statement without revealing any specific details about it. In the context of digital identity and privacy, ZK technology enables the verification of information without exposing unnecessary personal data.
What are Smart Contracts?
Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on blockchain platforms like Ethereum and automatically enforce the contract’s rules without the need for intermediaries. Smart contracts enable trustless and automated transactions, making them a fundamental component of blockchain-based applications.
Is there Privacy on Public Blockchains?
Public blockchains, such as Ethereum, openly expose all data, replacing true anonymity with a form of pseudo-anonymity. This poses a threat to privacy, as advanced tracking technologies can connect blockchain activities to real-world identities. This is where zero-knowledge technology comes into play, enabling smart contracts to handle private data in a manner that ensures its integrity and confidentiality.
How Zero-Knowledge Helps Privacy and Sovereign Identity?
In the realm of digital identity, zero-knowledge technology plays a pivotal role. It allows for the creation of verifiable proofs while keeping individual data private. This ensures that only essential personal data is disclosed, aligning with both privacy concerns and regulatory requirements.
Why Compliance Matters?
Regulatory compliance is essential for financial institutions to prevent illicit activities, such as money laundering and fraud. In the DeFi space, these regulations are increasingly crucial to ensure the legitimacy and security of digital financial transactions.
