In the context of a growing shift towards DeFi, the challenge of user identity verification while maintaining privacy remains a daunting task. This paper proposes a model for identity verification based on Zero-Knowledge Proofs (ZKPs) tailored for distributed financial contexts. The model implemented uses cryptographic methods to verify identity claims while maintaining the confidentiality of the personal information, achieving a delicate equilibrium between privacy and financial compliance. The privacy-compliant framework increases security while satisfying legal compliance by removing the need to trust a single party and decreasing exposure of personal information and data. The proposed model improves privacy, verification speed, and fraud resistance compared to conventional and baseline systems.
Sai Vamsi Kiran Gummadi (Wed,) studied this question.