FIP-3: Adding Privacy to Your Blockchain Identity Management.
Your Decentralized ID Deserves Privacy
An innovative new technology, called decentralized ID (DID), stores sensitive information like your credit score or GPA on the blockchain, allowing you to own your personal data. But blockchain is known for transparency — so how can we ensure your personal data remains confidential?
Findora proposes a solution through FIP-3, allowing you to reveal your data on your terms.
The Power of Decentralized Identity Management
Traditional online platforms collect users’ personal data. When you hand over personal data to your favorite website, how can you be sure your personal information won’t be exploited and remains confidential?
Decentralized ID (DID) leverages encryption and decentralization to provide individuals with ownership of their personal data. Through DID, information such as date of birth, GPA, and credit score is owned and managed by the individual — Access to their personal information is controlled by the user, not the dApps it is shared with or the companies that store it.
Findora’s DID Proposal
Blockchain identity management is coming to the Findora ecosystem through Findora Improvement Proposal 3 (FIP-3).
FIP-3 is one of the first practical applications of zero-knowledge proofs to DID, allowing users to control who sees their data and how much gets revealed. It allows users to encrypt their data with their personal keys and issue proofs of that data to dApps and other third parties.
Essentially, FIP-3 allows users to control what private data that Web3 applications can access by encrypting it inside a zero-knowledge proof. When a third party, like a dApp, requests private data, the user can create and share custom proofs of that data to share and, as a result, share as little or as much as they want. In layman’s terms, it is the difference between providing your date of birth and providing proof that you are over a certain age. This is done using zero-knowledge technology on Findora.
FIP-3 Use Cases
Findora’s DID system brings a wide range of practical use cases. Below are some examples of what this zero-knowledge technology brings to Web3 users:
Credit Score Verification
Suppose Aave is offering better loan rates depending on a user’s credit score. TransUnion has issued this user a score of 750, encrypted the information in a credential, which is then stored on IPFS, a decentralized blockchain for storing and managing files.
Using Findora’s DID solution, the user can qualify for the better rate without disclosing the actual score, all done using zero-knowledge technology. Instead of giving Aave complete access to their TransUnion credential, they can simply issue a proof to Aave that contains as much or as little data as they choose.
A Web3 gaming platform requires that users be above 21 in order to access their platform. Instead of revealing their actual date of birth, the user can issue a proof showing their age is above 21, giving the platform the needed information but in a zero-knowledge fashion.
Universities can issue credentials containing a graduate’s GPA, certificate of graduation, and other data. Users could prove their qualifications to jobs and recruiters when they request it because the credential from the university has the university’s signature.
A Step Towards a Decentralized Data-Ownership
FIP-3 brings data ownership into the hands of individuals by relying on decentralized chains like Findora and IPFS for privacy and data storage. No internal team or external agency can arbitrarily delete, query, expose, or control your encrypted personal data.
Similar zero-knowledge systems can be used to certify votes, verify supply chains, and reduce the burden of data storage on companies. Storing proof of data is easier and safer than storing the actual data — exploited platforms that received your proof would have no actual data to expose. FIP-3 is the first step toward restoring user control over their personal data and fulfilling the original Web3 promise of data ownership.
Findora builds privacy through advanced zero-knowledge proof cryptography. An innovative layer-1, it combines a native UTXO ledger optimized for privacy with an EVM extension for programmability and interoperability. Developers can leverage either model as they build dApps with auditable privacy.