zCloak Network’s full-chain KYC product Legit ID is officially launched
November 6, 2023, zCloak Network’s latest full-chain KYC productLegit ID(legit 3.id) is officially launched. zCloak is a privacy-first decentralized digital identity and trusted credential infrastructure, aiming to establish a new identity data system and trust transfer paradigm in the Web3 era. The emergence of Legit ID will reshape the industry landscape in the field of digital assets and digital identity.
Dr. Zhang, founder of zCloak Network, said: While maintaining the decentralized and open core of Web3, necessary supervision and compliance are also crucial. We are like explorers in the Wild West, ready to use technical means to That land brings law and order. Looking back at the development history of the Web3 industry, blockchain technology has always been known for its openness and anonymity. The emergence of many DeFi protocols and RWA asset on-chain has brought great changes to the financial field. Profound transformation. What follows is a series of difficult challenges. The most thorny and severe problems currently facing the industry are supervision and compliance issues.
Exploring regulatory and compliance issues in the digital realm
In the digital world, the existence of global supervision and compliance laws can effectively suppress and combat illegal financial activities and protect consumers and investors. The decentralized and permissionless nature of blockchain will inevitably cause ordinary users to worry about asset security, data privacy, information jurisdiction, etc.
In view of the growing regulatory needs of the Web3 ecosystem, governments and major regulatory agencies have been looking for solutions, trying to find a regulatory solution that is both consistent with the decentralized nature of Web3 and reliable. With the rise of RWA tokenization, solutions such as KYC (Know Your Customer) and Anti-Money Laundering (AML) have gradually received more attention, and the industry generally believes that this is the only way for on-chain application compliance. Although KYC and AML are effective in verifying legal transactions and preventing illegal on-chain activities, there is still great resistance to the implementation of traditional KYC in Web3. We believe the main reason is that traditional KYC solutions violate the full anonymity and privacy that Web3 users are accustomed to. in principle.
And this means that we need a new KYC solution that can not only comply with global regulatory requirements but also protect user privacy, so zCloak Network brings Legit ID. Legit ID is the product of zCloak’s years of deep experience in the fields of zero-knowledge proof and DID. “One KYC, universal for the entire chain” can perfectly summarize the core features of Legit ID. It only requires users to perform KYC verification once, and can perform full-chain KYC certification globally. While sharing identity information, it fully implements the concept of personal data sovereignty advocated by Web3. Based on zCloaks long-term technology accumulation, Legit ID uses zero-knowledge proof technology and a decentralized identity system to implement KYC services with security and privacy as the core.
Core Benefits of Legit ID
First, a distinguishing feature of Legit ID is its full-chain availability. Legit ID uses the DID and VC protocols under the W3C standard to store KYC result data off-chain, and uses unique self-verification data on-chain technology to replace oracles, which can easily communicate with intelligence across multiple chains while ensuring the authenticity of the data. Contracts share data, including Ethereum, Solana, Sui and any layer 2/3 public chain. Not only do users gain true sovereignty over their identity data, but they can flexibly use their KYC verification results to drive smart contracts at the protocol layer to conduct business without performing traditional message cross-chain operations.
Second, Legit ID can provide real-time AML data updates of user addresses at the protocol layer. As we all know, identity compliance monitoring is not a one-and-done operation. An address that is compliant today may be involved in illegal financial activities tomorrow. Therefore, it is not enough to just put the KYC results on the chain. Dynamic AML/CTF monitoring is also needed to further reduce risks. Legit ID cooperates with the on-chain data security project Chaintool to provide second-level AML alerts to transaction parties, aiming to protect enterprises, investors and individual users from the threat of illegal addresses.
In addition, Legit ID also supports project parties to customize identity information verification content. The user information obtained by the third-party smart contract can be simple KYC check pass/fail status, anti-money laundering risk score, or more complex identity information based on zero-knowledge proof. Legit ID can deliver user identity certificates including location range, age range, income level, credit rating, risk preference and other factors to the smart contract while fully protecting user privacy. The richness and level of detail of the proof results can be quickly customized to the specific needs of each validator.
Finally, Legit ID provides enterprises with a low-cost, easy-to-integrate user real-life authentication solution. The Legit ID product uses a subscription system, and its usage cost is much lower than the cost of the project party contacting a KYC company for identity verification work on its own. It has huge advantages in integration time and business processes. The project side does not need to modify any existing business logic. It only needs to access the contract deployed by Legit ID to obtain complete user identity information.
To sum up, Legit ID is an innovative identity verification platform that provides full-chain availability across multiple blockchain platforms, as well as real-time AML monitoring and alerting systems to enhance compliance and security for enterprises and users. . In addition to regulatory and compliance use cases in the financial field, Legit ID can also play a huge role in on-chain anti-witches, DAO governance, personality certification and other scenarios.
About zCloak
zCloak Network is a privacy-first decentralized digital identity and trusted credential infrastructure, aiming to establish a new identity data system and trust transfer paradigm in the Web3 era. want to know aboutLegit ID(legit 3.id) andzCloak NetworkFor more information, please visit the platform’s website. To get the latest news and progress of zCloak, you can follow the company’s official social media:
