DOP transforms KYC checks in new collaboration with zkMe

DOP and zkMe’s values are beautifully aligned, with both projects driven by a belief that selective transparency and disclosure should be an industry standard in the blockchain space.

Collaborations are an essential part of the business world — but when one project partners with another, it’s crucial that their values align.

So far, Data Ownership Protocol has attracted over 700,000 followers on X with a very simple message: you should be in control of your personal information at all times. It should never be stored on centralized servers, where you risk falling victim to an unacceptable data breach.

But our priorities don’t stop here. DOP is determined to change the way blockchains work, for the better. We believe users should be able to decide how much of their transaction history is publicly available, and protect sensitive information about their cryptocurrency balances and NFT holdings.

And last but by no means least, we’re vowing to reimagine the way Know Your Customer checks are executed. KYC is a vital part of the regulatory process — but in our view, crypto firms end up gathering excessive amounts of information about their users. From details about your earnings to video selfies, pictures of your passport to your investment history, this is a vast treasure trove of data that could be misused if it enters the wrong hands. And worse still, some platforms have weaker security standards than others.

It’s in this vein that we’re delighted to unveil a brand-new collaboration with a company that shares our values — and ensures KYC can be conducted legally without compromising the safety and security of users. DOP is teaming up with zkMe, which uses zero-knowledge cryptography to verify identities in a sophisticated way.

Both DOP and zkMe believe that you should own your KYC at all times — and selective transparency is a right that should be afforded to all crypto enthusiasts. Here’s an example of how this cryptography can work in practice.

Let’s imagine you’re a young person heading on a night out, meaning that there will be a bouncer on the door checking you’re old enough to drink. To prove you’re of legal age, you’ll probably need to hand over a driver’s license that reveals far more information than what’s needed to verify it’s true. Does that bouncer need to know your exact date of birth? Your home address? What your signature looks like? Your marital status? The short answer is no.

This is where zero-knowledge cryptography adds value. Through zkMe, any authority requiring verification would be told a simple fact: this person is old enough.

Striking a balance

Together, DOP and zkMe are finding the middle ground — a sensible solution that prevents malicious actors from using the protocol freely, without jeopardizing the privacy of law-abiding users. Crucially, this technology fully complies with global KYC regulations. From the recommendations set by the Financial Action Task Force, to the EU’s 6th Anti-Money Laundering Directive, zkMe’s infrastructure ensures due diligence checks are successfully completed without compromising a user’s true identity.

Checks and balances do remain in place. Governments who suspect users of criminal activity or wrongdoing can initiate “bad actor” proceedings in exceptional circumstances — and if their requests are granted, KYC documentation would be decrypted. But as zkMe rightly points out, this is a vast improvement on the traditional infrastructure that financial institutions currently rely on. Why? Because everyone is verifiably anonymous until proven guilty, and some centralized authorities can be prone to overreach.

The compelling use cases that zkMe’s technology provides — and DOP will benefit from — go much further than this, too. Our new collaborator is pioneering privacy-first technology that’s known as “one face, one DID.” This stands for Decentralized Identity, meaning all users verify that they are who they say they are through facial recognition.

At this point, you may be asking this: the technology sounds compelling, and it’s great that less data is required for identities to be verified, but how is this information processed? Well, zkMe completes its computations directly on your device — or through decentralized identity oracles. This network of nodes is blockchain agnostic and scalable. And whenever due diligence checks are being performed, no party — including regulators, DOP and zkMe — can access personally identifying information. As a result, your personal data is never stored on centralized servers.

Unparalleled levels of flexibility also mean that, when you use your zkMe self-sovereign identity to interact with protocols like DOP, you can edit and revoke verification permissions at any time. This is data management as it should be — and when compared with the onerous process of getting centralized companies to disclose what they know about you, and delete this information, it’s a breath of fresh air.

An exciting step forward

In recent months, zkMe has also entered into partnerships with PolygonID as well as Hippocrat, a platform that allows medical history to be stored, and shared with counterparties, in a safe and efficient way.

Now, this collaboration with DOP will deter malicious actors and criminals from joining our ecosystem — meaning law-abiding users can rest assured that they will be interacting with others who have also verified their identities, reducing the risk of tainted funds infiltrating the protocol. Money laundering and fraud is also being combated in real time through a tie-up with Chainalysis.

DOP is proud to lead by example, and showcase the power of selective transparency. Our team has been meticulously building a platform that delivers never-before-seen features in the blockchain space, all while tackling the technological hurdles that stand in the way of them being realized.

Stay tuned for further updates on DOP’s progress in 2024 and beyond, as we continue to proudly unveil collaborations with more leading projects in our industry. When coupled with a raft of new features as our mainnet nears launch, there’s a lot for our users to be excited about.