Polygon Launches Web 3 ID That Focusses on User Data Anonymity

Polygon, the popular Layer-2 scalability solution for Ethereum, has been working on some key developments including a new identity verification platform powered by zero-knowledge (ZK) cryptography. The service, called Polygon ID, will help in verifying users' information while preserving their on-chain privacy. Using Polygon ID, applications running on the blockchain will be able to authenticate user data while keeping sensitive information private. Polygon's development team says that the team will leverage iden3, a decentralised identity protocol that uses zero-knowledge proofs, to make this happen.

As the name suggests, 'zero-knowledge'-based protocols bolster privacy by allowing blockchain networks to validate transactions without disclosing data other than time and date on the blockchain. Only the entities involved in a transaction can access further details regarding the transaction. The move is designed to let users transact on the Ethereum network but protect the sanctity of their personal information in a much greater way than they can now.

As noted by Polygon in its official blog post, the new platform ‘is the first-ever to be powered by zero-knowledge (ZK) cryptography, privacy, and blockchain scaling technology'.

ZK technology allows data verification for transactions and personal identification without handing over the control of the information. This also aligns with Polygon's vision of offering better user privacy. Polygon said that it will continue to work on the ZK technology and it has already committed more than $1 billion (roughly Rs. 7,57,680 crore) to related projects. It added that this ID platform is the latest in its growing portfolio.

With Polygon ID, ZK-proofs will be used to prove a users' identity for Know Your Customer or KYC verification. Previously, users would need to submit personal documents every time they needed to pass KYC, creating new vulnerabilities each time they shared their identification. By using Polygon ID, users no longer need to expose their personal information to companies requiring KYC and can instead prove their identity on-chain using ZK-proofs.

In addition to KYC applications, Polygon has also suggested several other ways its identity solution can be used. Possible future applications include creating decentralised credit scores, player reputation profiles for Web 3 games, and private, censorship-resistant peer-to-peer communication for social applications. Polygon ID will be open source, complete with its own software developer kit, allowing any blockchain protocol to develop its own custom use cases.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.