Zero-Knowledge KYC
The main idea is to decentralize the world and KYC is seen as a burden. With the no-KYC process, anybody can trade on DEXs without any identification. However, adding a KYC is a major friction for early adopters to participate.
KYC is essential to allow institutions to participate in trading, as most of them are regulated entities. Without bringing them on, it is difficult to reach mainstream adoption of DEX trading. Our solution is a Decentralized KYC, that is a way of using cryptographic proof instead of actual user’s data to verify that the participant is not sanctioned by Anti Money Laundering or involved in other financial crimes.
Since blockchain is using a 'proof of identity', the user’s personal data always remains only with the user in his own wallet. This means that the data is not given out to any third parties and users are in full control of their data – limiting the risk of data leaks or hacks.
KYC will be needed for users whose trades will exceed a certain limit. The exact limits will be enforced by the upcoming regulations. Users will store their KYC data in a wallet and expose it to their preferred KYC attester like Fractal. The chosen attester will issue a cryptographic proof to the blockchain. EGG will therefore receive a zero-knowledge proof of identity.
Hence user data is exposed only for the verification process and remains in the user's wallet the rest of the time.
Last modified 1yr ago