Polygon to launch Zero-Knowledge-based IDs to offer additional security to its users
Polygon’s new identity solution will be open-source and will enable blockchain protocols to develop their own custom use cases.
On March 30, , a layer-2 Ethereum scaling solution, has announced the launch of Polygon ID, an identity solution that offers users additional privacy and control. The blockchain network intends to use zero-knowledge (ZK) proofs to generate a digital identity that does not divulge users' personal information.
Mihailo Bjelic, Co-founder of Polygon, took to Twitter to announce the launch of its ZK-based identity solution.
Mihailo said, “Polygon ID is private by default, offers on-chain verification and permissionless attestation."
"There is nothing in the digital identity space now that ticks all these boxes, and it is also a great showcase for how zero-knowledge proofs can help us create a better world.”
With the identity solution, the company intends for organisations and enterprises to use Polygon ID for identification and trust management purposes, including KYC (Know Your Customer) and digital wallets. Users can authenticate themselves to blockchain-based applications without having to provide passwords or personal information to each one separately.
The new feature enables users to produce proofs conveniently while participating in initial coin offers (ICOs), token airdrops, decentralised exchange (DEX) trading, or platforms that require KYC.
As cryptocurrencies are becoming popular, KYC standards are becoming increasingly vital for businesses to comply with local regulations. Companies can avoid criminal activities such as money laundering and tax evasion while still protecting their consumers' privacy by providing a more private and secure means of KYC with ZK-proof-based solutions like Polygon ID.
Apart from the DeFi sectors, the company intends to expand and deploy its new feature in the metaverse, gamify, and nonfungible token (NFT) industries, where asset authenticity is validated by on-chain, privatised claims.
Polygon ID is likely to be utilised in emerging blockchain-based Web3 services to make authentication easier. According to the company's blog, the announcement is about the proof-of-concept (PoC) being ready, and the entire Polygon ID will be operational by the third quarter of 2022.
ZK-proofs have been used in several crypto projects due to their privacy-preserving qualities, most notably in privacy blockchains like Monero and Zcash.
Edited by Saheli Sen Gupta